2.Main Content
The LSC Preferred Supplier Consultation
Since July 2004 the Legal Services Commission (LSC) has been running its preferred supplier pilot with 24 private practice firms and one Not-for-Profit (NfP) agency holding a solicitor contract. It now wants to roll the scheme out to all suppliers including NfPs and has launched a consultation paper seeking views on its proposals.
In the April '06 issue of Focus, the LSC states that by introducing the scheme, it wishes "to achieve higher quality services for legal aid clients; better value legal services for taxpayers; and simpler and clearer relationships with legal services providers."
The Proposals
The LSC wants to contract solely with preferred suppliers by 2009. In order to be awarded preferred supplier status, a supplier must meet the following criteria:
- A good history of compliance with existing legal aid requirements such as contract compliance, cost control, compliance with SQM etc
- Value for money based on the procurement regime established after the Carter review
- A soundly financed and sustainable business
- A good quality of legal advice measured by Peer Review and File Assessment.
The consultation paper gives more detail about the proposed criteria. The key contract performance criterion to be met is that of hours delivered in the previous financial year. The requirement under the existing contract is 95%, however, the consultation paper says that this target is still "to be determined" for preferred suppliers. The key quality criterion is that suppliers must achieve a 1 or a 2 at peer review. The value for money criteria are vague. Once the Carter review publishes its recommendations for the procurement of civil law services, the criteria will become clearer. Indications are that Lord Carter will recommend fixed fees, competitive tendering and fewer, larger contracts.
Incentives
The pilot participants were offered a number of incentives for becoming preferred suppliers. However, the consultation proposes few practical incentives for NfP suppliers, other than improved LSC decision-making, simplified billing and claiming systems, and less intrusive auditing. The LSC is inviting proposals, however, as to what other incentives there might be.
Comment
Whilst NfP agencies may support the LSC's efforts to drive up the quality of work provided by its suppliers, it is unlikely they will find much else to be keen about in this consultation. The move towards larger contracts is likely to exclude some existing suppliers; the requirement to carry out all business with the LSC electronically in future may well be beyond the reach of others; and for the rest, the fact that holding onto their contracts is the only real incentive to take part in the scheme may just not be enough.
You can find the consultation paper at: http://www.legalservices.gov.uk/docs/civil_consultations/preferredsupplierconsultationpaper13march.pdf
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