Civil bid round 2008 - a taste of things to come?

The Legal Services Commission is planning changes in civil contract arrangements from April 2010, and these will have a profound impact on Not-For-Profit agencies.
 
The LSC has recently published Civil Legal Aid Contracts: The Next Five Years, setting out a "route map" for the future. Although price competition has been deferred until 2013 (except in 2 or 3 pilot areas), there will be no rollover of existing contracts. This means agencies will need to tender in an open bid round if they want their contract renewed in 2010. The LSC plans to invite tenders in May 2009.
 
The LSC remains committed to developing "integrated social welfare law services", covering welfare benefits, debt, housing, employment and community care. In practice this will mean fewer, larger contracts, with preference being given to providers delivering services in multiple categories of law and at all levels from Legal Help to Licensed Work (litigation funded under legal aid certificates).
 
CLACs and CLANs, jointly commissioned by the LSC and local authorities, remain the LSC's preferred vehicle for delivering integrated services, but where this is not possible, the LSC will seek to deliver such services through mainstream legal aid contracts. So the LSC's plans affect all NfP contract holders.
 
As of April 2008, there were some 420 social welfare contracts with NfP agencies. Over 90% of these were for services in 3 or less social welfare law categories, over 70% were for services in 2 or less categories and over 30% were for services in 1 category only. And less than 25% of these contracts covered Licensed Work, i.e. were with solicitor agencies. This gives an indication of the challenge that the NfP sector will face in adapting to the LSC's plans.
 
The LSC has recently launched an interim civil bid round for 2008, providing a possible foretaste of what is to come. Providers tendering for social welfare law services must satisfy a number of essential criteria, including being able and willing to deliver services:

• in three or more social welfare law categories, and
• across the full range and breadth of work from Legal Help to Licensed Work in all categories covered by the tender.

 
And there is more. Tenders meeting essential criteria are assessed against selection (desirable) criteria, and in some procurement areas, this means that preference will be given to those tendering for both family and social welfare law services. CLS Support has produced a briefing that considers the interim bid round in more detail.
 
Of course the 2008 criteria may not be applied in the 2010 bid round, not least because any "big bang" approach risks an unacceptable depletion in the supplier base. But there is little doubt that 2010 will see fewer, larger social welfare law contracts. CLS Support will shortly publish a briefing on 2010, and an LSC consultation paper is expected in September.
 
NfP agencies will need to consider their options, including withdrawal from legal aid work, significantly expanding their services and merging with other organisations. ASA believes that consortia and subcontracting arrangements may help maintain a significant and effective level of NfP involvement in legal aid provision. Unfortunately, these are not allowed in the interim bid round, but we are pressing the LSC and Ministry of Justice to permit them in the 2010 round.