THE ROLE OF PRIVATE SECTOR ORGANISATIONS
IN PUBLIC EDUCATION
Legislative basis for intervention by private
sector organisations
5. The legislative basis for local education authorities
to contract out the management of their education services arises
from the School Standards and Framework Act 1998. Under section
8 of the Act, the Secretary of State has reserve powers to secure
the proper performance of LEA functions. The Secretary of State
may direct the authority to contract out some or all of its education
services if he is satisfied that the authority is failing to perform
these functions to an adequate standard. In January 1999, the
DfEE took initial steps to establish a list of approved companies
to bid for contracts with LEAs and invited tenders from (a) organisations
interested in providing consultancy work for Government in relation
to LEA intervention and (b) organisations interested in bidding
for contracts as service providers to local education authorities
in relation to intervention by the Secretary of State. Six organisations
were awarded framework contracts for consultancy work, and ten
organisations were approved as service providers.[2]
During February 2000 the DfEE advertised for further organisations
to provide services for local authority intervention,[3]
and added a further five organisations (shown in italics) to the
list of approved consultants and seven approved service providers.[4]
| CONSULTANTS
| |
| KPMG | Deloitte & Touche
|
| Lorien | Ernst & Young
|
| Capita | Dbi Associates/CELSI
|
| Office of Public Management
| Nord Anglia Education
|
| PricewaterhouseCoopers |
Cambridge Education Associates
|
| Arthur Andersen/Birmingham LEA
| |
| SERVICE PROVIDERS
| |
| Cambridge Education Associates/ Mott MacDonald
| Prospects/Pannell Kerr Forster/ Nabarro Nathanson consortium
|
| Nord Anglia Education plc
| WS Atkins Consultants
|
| Include | Tribal Group/Group 4 consortium
|
| Hampshire LEA | Serco
|
| The Education Partnership
| Bevan Ashford consortium
|
| Capita | QAA Education Consultants
|
| CfBT Education Services
| Camden LEA |
| Arthur Andersen/Birmingham LEA/ APS Keele
| |
| CEM Consortium and Essex LEA/ Windsor and Company
| |
6. During our inquiry the Government began
the process of intervention, or sought alternative means of improvement,
in a number of local authorities. Box 3 summarises the local authorities
involved and the action which is being taken to address weaknesses
in provision.
Box 3: Interventions in local education authorities
London Borough of Hackney. Nord Anglia Education plc were awarded a contract to run the School Improvement Service (from July 1999) and Ethnic Minority Achievement Service (from April 2000).
London Borough of Islington. Cambridge Education Associates were awarded a contract to take over responsibility for the education service.
Liverpool. The Government decided not to proceed with outsourcing Liverpool's education services as a result of significant improvements made in the management and delivery of the authority's education services. A monitoring board has been established to oversee a contract between the Council and its education service prepared by external consultants.
Leicester City. A Partnership Board has been established to oversee progress on a number of issues identified by OFSTED. The LEA will establish a Development Support Agency to help schools be better customers of the LEA's services and a performance management system will be introduced.
London Borough of Haringey. Following OFSTED's inspection in September 1999, external consultants were appointed jointly with the DfEE to advise on action required to address issues identified in the inspection report.
Bristol. External consultants were appointed to recommend action on issues identified by OFSTED.
London Borough of Southwark. External consultants recommended an interim management team be appointed, comprising a Head of School Improvement (from the local authority sector), a Head of Policy and Resources (from the private sector) and a Head of Pupil and Student Services. The authority has also advertised for a strategic private sector partner to provide education services.
Walsall. Consultants have been appointed to advise on action to address issues identified by OFSTED. They are considering the case for outsourcing the LEA's services.
Leeds. Consultants have been appointed to advise of action to address issues identified by OFSTED. They are considering the case for outsourcing the LEA's services.
Rotheram. Consultants have been appointed to advise of action to address issues identified by OFSTED. They are considering the case for outsourcing the LEA's services.
Sheffield. Consultants have been appointed to consider issues identified by OFSTED. The LEA have made arrangements for interim management support of special educational needs service and for revision of the LEA's educational development plan.
Sandwell. Consultants are to be appointed to advise of action to address issues identified by OFSTED, and to consider the case for outsourcing the LEA's services.
Source: Ev. pp. 75-76.
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2 Appendix
2, para 19. Back
3 Ev.
p. 73. Back
4
DfEE press notice, 17 May 2000. Back
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