LPP strapline

Aggregating demand on legal services saves 20-40 per cent on fees

LPP members were given the opportunity to aggregate their demand for Legal Services under a variety of Lots, and were rewarded with savings of between 20 and 40 per cent.

Aggregating demand on legal services saves 20-40 per cent on fees

Gavel And Stethoscope

 

The current Legal Services framework enables LPP members to access legal services through a compliant route. The framework has been awarded by NHS Commercial
Alliance but is open to LPP members as a result of our NHS Collaborative Procurement Partnership agreement.

As a large and complex public sector body, the NHS requires specialist legal advice on a range of issues. Prior to 2011 and the existence of a framework agreement, many NHS organisations were using many of the same suppliers for Legal Services, but paying a wide variety of rates. An initiative to harmonise fees across the NHS in London in 2011 through a tender for the provision of Legal Services showed what potential there is across England – as London trusts alone achieved approximately £1.2 million savings per annum.

The framework, awarded in February 2015 by NHS Commercial Alliance, opened that benefit to NHS organisations beyond London. The framework offers NHS organisations the flexibility to run further competitions to reduce established ceiling prices or to move away from fixed hourly rates through the use of retainer models.

Benefits of the contract

The framework offers many benefits, including ceiling rates which can be
reduced through further competition. Cost savings can be made by managing the balance of senior/junior resource
according to case requirements with a split between complex and non-complex areas of law, with fixed framework
prices for defined standard services.
In addition it offers initial free of charge consultation, either written or verbal, an out of hours service, and provides for training for legal services procurement. When considered mutually beneficial, a supplier can provide NHS organisations with a suitable secondee for an agreed period.


Contract lots (all direct call off or mini competition):

Lot 1 - Primary Care
Lot 2 - Mental Health Law
Lot 3 - Corporate & Commercial Law
Lot 4 - Employment Law
Lot 5 - Property Law
Lot 6 - PFI/PPP Law
Lot 7 - NHS Governance and Public Law
Lot 8 - Healthcare Law
Lot 9 - Multidisciplinary

Taking savings further: aggregating demand

In October 2015, LPP took the initiative to offer an opportunity for members
to aggregate their demand for legal
services under selected legal disciplines and achieve even bigger savings. This
aggregation, the first of its kind,
produced savings of between 20 and 40 per cent on spend for participants,
depending on Lot:


Corporate and Commercial Law -
40% average saving

Employment Law - 20% average saving

Property Law - 40% average saving

Healthcare Law - 20% average saving

Laura Whitworth, LPP Senior Category Manager who managed the process, comments that “Aggregating demand resulted in a very competitive process between suppliers, and hence significantly improved the benefits to be had from the framework, as that exercise showed”.


One of the participating trusts was London North West Healthcare (LNWH).
As Associate Director of Procurement Vince Pross says, “LNWH supports
collaboration between trusts to improve efficiency and quality. We selected this procurement route as it maximises economies of scale, enables shared
expertise regarding service design, and is a
relatively easy way to ensure appropriate quality is delivered via a legally
compliant tendering process.


If we hadn’t collaborated with LPP on this aggregation, LNWH would have had to tender in isolation or organised our own collaborative projects - much more labour intensive and arguably would not have achieved such high savings.


The aggregation process ran smoothly, as all participants shared in the design and evaluation tasks and were given good opportunities to feedback and influence the project at all stages. I was pleased to have my service specification, invoicing and reporting ideas included within the final version. As with all projects, it afforded an opportunity to re-evaluate and re-specify service needs and protocols around customer access and authorisation in order to realise even further efficiencies”.


LNWH is very pleased with the large efficiencies achieved, and – significantly – our stakeholders understand that these savings were not achieved at the expense of service quality”.


Vince Pross, Associate Director of
Procurement, London North West Healthcare NHS Trust

22-04-16    Professional Services

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