Occupational Health Contract Uplift

This decision requests uplifting the contract value for the Optima Occupational Health (OH) contract. The current rate of spend on this contract is higher than originally anticipated and the contract value needs to be uplifted to reflect the actual expenditure. In addition, new services are planned to be offered through this contract to support police officers and staff.

The Directorate of Audit, Risk and Assurance (DARA) Optima contract review audit in 2019 noted that the volume budgets should be updated to reflect the actual volume being delivered where the MPS is satisfied that the variance is due to a genuine increase in volume or additional service being delivered by Optima Health. It was also recognised that the management information available at the time of going out to tender was insufficient to cover the full scope of the service required. Additionally, since the contract started, there has been more widespread awareness of the occupational health service with a number of proactive service delivery/support campaigns including destigmatising mental health issues which has further increased demand.

This paper seeks to address this position in contract volume to uplift the current contract value for the provision of occupation health services to MPS to reflect the current service provision. Approval is therefore sought to uplift the contract value from £34,000,000 to £52,861,805 to cover both business as usual and new services.

This paper is not seeking additional monies. This is based on using the service funding allocated for FY 21/22 as the new baseline.

The Deputy Mayor for Policing and Crime is recommended to approve uplifting of the contract value for Provision of Occupation Health Services to MPS from £34,000,000 to £52,861,805 covering both Business as Usual (BAU) and New Services. Funding for this has already been allocated and budgeted for by the MPS’ Finance Department.

1. Introduction and background

1.1. For Business as Usual (BAU) Services, the current OH (Occupational Health) contract with Optima Health is maturing and predicted levels of demand are different to those submitted in the tender-stage forecast, with the majority now increased. The original volumes baselined in the contract were underestimated, partially due to the lack and accuracy of Management Information (MI). Also, within this contract there has been unprecedented growth in demand for this core service.

1.2. Since commencement of this contract in 2017, demand for OH referrals as well as face to face counselling have doubled. This increase in demand for services is also due to a better understanding of OH process through better engagement with business groups and the embedding of the MPS strategic aims for the wellbeing of its people. Another contributing factor has been the Government’s initiative to recruit more officers. Optima Health have proactively responded to change their operating model so that they can meet the service levels required. In addition, Optima have responded dynamically during numerous operational incidents (Terrorist, Grenfell Tower fire and COVID-19) to provide vital operational support to officers and staff.

1.3. In October 2018, People and Training Board agreed the MPS Health and Wellbeing Strategy 2019-2021. The strategy informs the priorities and activities to improve the physical and mental health of those who work in the MPS.

1.4. The strategy recognised a number of improvements, which include:

• In a changing dynamic and a challenging environment, the MPS need to adapt and better support the wellbeing and health needs of its officers and staff;

• The MPS needs to better equip managers and leaders at recognising the good effects of work, not just the ill effects, and to look at what people can do rather than what they cannot do; keeping people in work where practicable.

1.5. As a consequence, the workplace wellbeing services needed to move to a more proactive health model with a focus on developing services and support mediums better designed to support the unique needs of those undertaking police work in the MPS. The proactive delivery of improved psychological screening for high risk roles and beyond to support officers and staff is an example.

Current Model

1.6. To achieve this the current Occupational Health (OH) service delivery model via its outsourced partner, Optima Health will be maintained. With the continuation of delivering BAU Services, a range of new psychological and physiological services have been further developed. There is a clear evidence base that indicates that regular exposure to policing work has an impact on both psychological and physical health.

1.7. The core OH expenditure is split between three service levels; bronze (core / essential), silver (specialist) and gold (highly specialist and linked to current health needs). The table below summarises core baseline OH and specialist services:

1.8. The vision is for a healthy, well equipped, well supported and well led workforce, who all contribute to a culture of wellbeing and believe they work somewhere they are able to thrive. Expansion into a far more preventative and educational wellbeing support has been delivered. To support delivery of this, work continues with implementing an ambitious health and wellbeing programme.

Next Two Years

1.9. BAU Services continue to be monitored in relation to the contract. The performance of services is managed through appropriate management information (MI) data. For new services, appropriate monitoring mechanisms are put in place as the services are developed. This will be further supplemented by staff survey feedback and future health needs assessment, the results will measure the impact of intervention strategies and investment.

1.10. Whilst musculoskeletal (MSK) injuries are currently the primary cause of absence, it is expected that mental health related sickness and OH referrals will continue to grow. This is due to the promotion of the awareness of this sickness category and the confidence to seek support increasing. In addition, this financial year has seen further impact on delivery of COVID-19 occupational health support.

1.11. As part of the government drive to increase police officer numbers, it is anticipated that over the next two years the MPS will see an uplift of additional police officers, therefore demand for OH services is likely to go up even further. This growth in demand will be assessed and embedded in proposed forthcoming enabling strategies to provide a roadmap for future services.

New Services

1.12. As part of the first New Services offer, the Employment Assistance Programme (EAP) was successfully launched in August 2019. The EAP provides a host of workplace and personal health, wellbeing and welfare support tools via a web link and over the telephone, 24 hours a day.

1.13. The new service will support all police officers and staff with access to emotional and practical support. The Manager’s Advice Line (MAL) was also launched in January 2020.

1.14. Other new services either launched, or subject to a pilot now include:

• Self-referral MSK service;

• Psychological monitoring programme, interventions therapies and enhanced counselling support mediums;

• OH Specific Point of Contact service;

• Met Mobile Wellbeing Service (Outreach Service);

• A suite of courses from MIND network that continue to develop awareness and advice on symptoms, causes, recognition and interventions (courses are designed for various ranks and dependent on management responsibility). In addition separate suicide prevention awareness training (PIPS).

1.15. Work remains on going in relation to a new trauma peer support programme.

1.16. Psychological and MSK illness are the two highest causes of sickness absence. The MPS can improve and maintain good mental and physical health by earlier intervention through health surveillance and preventative advice. It is also known that most MSK symptoms can be tackled early through self-help and basic advice, before they become chronic and long term. It is strongly believed that investing in these areas will have a direct correlation with reduced sickness absence, greater personal resilience and operational capability.

1.17. The MPS also recognise the important relationship between wellbeing, operational capacity and capability. A more engaged and healthy workforce improves operational outcomes, productivity and the service to the public. Building on the health needs assessment and strategy, last year wellbeing questions were, for the first time, included in the annual staff survey. These new wellbeing questions track whether the MPS are equipping its managers to deal with health and wellbeing issues and giving its people the support they need.

1.18. It is also worthy of note that the workforce, and the general population, are becoming more confident to speak about mental health conditions. This increases demand for services, encourages those affected to seek support, recognises the long term impact of mental health for those in the emergency services and the need to build effective peer support.

1.19. The services provided are demand led, therefore control of the service volumes used is limited.

2. Issues for consideration

2.1. This paper seeks to address the DARA Optima contract review audit in 2019 that noted that the volume budgets should be updated to reflect the actual volume being delivered where the MPS is satisfied that the variance is due to a genuine increase in volume or additional service being delivered by Optima Health. It was also recognised that the MI available at the time of going out to tender was insufficient to cover the full scope of the service required. Additionally, since the contract started, there has been more widespread awareness of the occupational health service with a number of proactive service delivery/support campaigns including destigmatising mental health issues which has further increased demand.

2.2. This paper seeks to address this position in contract volume to uplift the current contract value for the provision of occupation health services to MPS to reflect the current service provision.

2.3. This paper is not seeking additional monies. This is based on using the service funding allocated for FY 21/22 as the new baseline.

2.4. Additional supporting information is contained in the restricted section of the paper.

3. Financial Comments

3.1. This paper is seeking approval for uplifting the contract value for Provision of Occupation Health Services to MPS from £34,000,000 to £52,861,805 covering both Business as Usual (increasing from £34,000,000 to £48,467,305, a 42.6% increase) and New Services to the value of £4,394,500.

3.2. This paper is not seeking additional monies. The full cost for the BAU and new services is already funded and allocated to the OH budget in the FY 21/22 baseline.

4. Legal Comments

4.1. This uplift has been considered with regard to the requirements set out in the Public Contracts Regulation 2015 (as amended). Further information is contained in the restricted section of the paper.

4.2. Paragraph 4.13 of the Scheme provides that the DMPC has delegated authority to approve all unforeseen variations and extensions to contracts with an original value of £500,000 or above, when the variation or extension is greater than 10% of the original value and/or is for a period of more than 12 months.

5. Commercial Issues

5.1. This paper seeks to address the position in contract volume to uplift the current contract value for the provision of occupation health services to MPS to reflect the current service provision.

5.2. Additional supporting information is contained in the restricted section of the paper.

6. GDPR and Data Privacy

6.1. There are no immediate privacy implications arising from this report.

6.2. The project does not use currently personally identifiable data of members of the public, so there are no current GDPR issues to be considered. If the project uses personally identifiable data of members of the public at a later date DPIAs will be completed as needed.

7. Equality Comments

7.1. There are no immediate equality implications arising from this report. The intention of this proposal is to benefit all those who work in the MPS no matter what their job role, social background, religious beliefs or other characteristics.

8. Background/supporting papers

8.1. Report.