Best Value and the Comprehensive Performance Assessment (CPA)

Best Value is a key element of the Government's programme for Local Government.  The legislative framework in place requires Local Authorities to make arrangements to secure continuous improvement in the quality of public services and in the way that they carry out their functions, striking the best possible balance between effectiveness, efficiency and economy.

The Best Value requirements for Local Authorities fall under the following key headings:

•  Best Value Reviews, Best Value Performance Plans and the CPA - Local Authorities are required to undertake reviews of all of their functions to an agreed programme.  Local Authorities are also required to publish annual Best Value Performance Plans for each function

•  Consultation - central to Best Value is an expectation that there will be a greater focus on consultation with users and other stakeholders to establish the need for services and subsequently as part of measuring and monitoring performance

•  Best Value Performance Indicators (BVPIs) - the DCLG and Audit Commission have published a series of BVPIs for Local Government services.  These BVPIs will enable comparisons to be made with the performance of other Local Authorities and with the Local Authority's performance in previous years.  In addition, Local Authorities are being encouraged to develop and use Local Performance Indicators (LPIs) that reflect local priorities and tailor Best Value to suit local circumstances

•  Inspection - all functions are subject to inspection under Best Value.  These inspections will take, as a starting point, the Local Authority's own assessment of its performance and any action it plans to take to improve service delivery.

The Local Authority's [insert name of project] has been developed as a part of a strategic review of the [insert details of service], taking account of feedback the Local Authority received from [insert relevant sources of feedback from user surveys etc.]. This work confirmed the concerns about the service, and the procurement of the service through a long-term/PPP contract is considered to be the most appropriate way for the Local Authority to meet its Best Value Duty for this service.

Given the importance of the Best Value Duty to the Local Authority, a specific performance standard (Performance Standard [x]) has been developed to incentivise the Service Provider to assist the Local Authority in meeting its Best Value Duty.  This performance standard is aimed at Strategic Assistance and Reporting and the current intention is that the Service Provider will be required to provide 'assistance and reporting' in the areas set out in the Output Specification.

It is currently proposed that a failure to provide the necessary information to enable the Local Authority to meet its reporting obligations under the strategic assistance and reporting requirements will have an impact on the Unitary Charge as detailed in the Payment Mechanism.

The Local Authority also recognises that to meet its Best Value obligations in this long-term PPP contract, additional capital investment may be required by the Service Provider at some future date.  Where new investment is the only option available to meet any necessary changes, such as the improvements resulting from a Best Value Review or CPA, this will be dealt with through the change mechanism.   

Further information about Best Value, including the OBC for the Local Authority's [insert details of project] and other documentation arising from the Local Authority's most recent Best Value Review, relevant DCLG Guidance, and the relevant BVPIs and LPIs is included on the Collaborative Website for the project [available for inspection in the Data Room].