RM1214 SB076 Lewisham Council – Rushey Green Early Childhood Centre Contract

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The buyer is publishing the contract documentation to meet the government transparency commitments.

Created on11/04/2013
Reference numberRM1274 SB076
Deadline date02/07/2013
Estimated value£40,000 - £40,000
Location where the contract is to be carried outUnited Kingdom
Name of the buying organisation Government Procurement Service (on behalf of the Cabinet Office) (see other contracts from this organisation)

Description of the contract

Rushey Green Early Childhood Centre (the “Potential PSM”) is a nursery service seeking to spin out of Lewisham Council (the “Parent Body”). They have a turnover of approx £0.5m and there are 23 members of staff - all staff are currently full time, however, the Potential PSM intend to have a variety of posts available in the future including, full time and term-time positions. Following a decision by the Parent Body to no longer provide nursery services in house, the services managers of the “Potential PSM” developed an outline business case (please see separate attachment for outline business case) in September 2012 to take the service out and run it independently - this was successful and the “Parent Body” funded initial market testing which indicated viability (market testing has been covered within the outline business plan – please see separate attachment). The Parent Body has indicated that the ‘go live’ date is 1 September 2013 and are therefore keen to have a clearer way forward on the legal structure of the mutual – including employee terms and conditions, sick pay policy and pensions . The Potential PSM has not received any legal advice on these matters and to date, no work has been undertaken by the Parent Body’s HR team on HR matters. The joint service managers for the Potential PSM have however undertaken a small amount of desk research on staff terms and conditions. The Parent Body are supportive of the Potential PSM and working co-operatively over matters around asset transfer and leasing. Initial discussions on leasing options for the building, have been held, but as yet, no formal negotiations have taken place. Staff are eager for the mutual project to succeed and committed to continue to deliver independent of the Parent Body. The “Potential PSM” receives no other finding from the Parent Body as it competes in a market for nursery places – there is currently a lengthy waiting list (please see separate attachment for nursery fee chart). They offer a variety of childcare places and are referred vulnerable families (including homeless families, children with special needs, low income families) by health professionals and have achieved an ‘outstanding’ OFSTED rating. The Potential PSM is led by the joint service managers who have successfully run it for the past 13 years (both service managers work full time and will continue to do so). They have a clear picture of their ingoings and outgoings (please see separate attachment for financial plan). They are used to managing their service (both from a delivery and a budget management perspective) and operating in a market. They are aware that they will need to develop skills via their board, in order to build on commercial experience, secure working capital and focus on growth.


Contracts Finder Letter
(Contracts Finder Letter.docx)

Additional information

Additional NotesN/A
Is it a framework agreement?No
Awarded on02/04/2013
Awarded value£40,000

Awarded suppliers

Bates Wells Braithwaite (see other contracts awarded to this supplier) EC4M 6YH

Who to contact

Email spot.buying@gps.gsi.gov.uk

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