Section 1: Questions relating to the new contract Q Why has it been necessary to amend the TB testing fees shown on 20 and 21 January at the Supplier Open Days? A The TB test fee per herd test is calculated and processed for payment by APHIS. The current fee structure has only one change in the rate per head above 100 animals. The APHIS software can accommodate only this one change, hence the fee per head for all animals tested from 101 animals has been amended to £2.28. The fees for herds of 100 animals and below do not change from those described at the Supplier Open Days. Based on the 2014-15 test data this amendment maintains the average fee per head at £3.19 but will cost DARD an additional £2400. The slides used at the Supplier Open Days have been changed to show this amendment and its impact. The Q & A above was added on 10 February 2016 Q What are the main drivers for the new testing contract? A There are 2 main drivers: To bring TB testing services into a legal framework, supported by a public service contract which must be adhered to by both PVPs and DARD; and Following the procurement in England and Wales in May 2015 we needed to review our position to see that we are paying a fair price and not more than is appropriate. Q Will DARD be going through a full public procurement/ competitively tendering for the new testing services? A No. As DARD is not selecting the supplier but rather the farmer is, the procurement is not governed by public procurement rules. DARD will simply be seeking contractors to sign up to the new contractual arrangements for the set fees to deliver testing of herds for which their practice is nominated by the farmers themselves. Q Will there be grandfather rights for existing PVP testers already approved in Northern Ireland? A Yes. Q Farmers notify DARD of their testing practice preference under the new arrangement. Will DARD be approaching all farmers to verify this? A No. Initially it will be assumed that a farmer wishes to remain with the practice previously nominated to DARD. If a farmer wishes to change their nomination this can be arranged. In the event that it is inappropriate to change nominated practices at that time but a farmer is insisting, e.g. in the middle of a disease breakdown, then DARD has the right to take herd tests back in-house. Q PVPs are nervous about KPIs and the contract is not being published until 1 March 2016. Might these be beyond our control? A Key Performance Indicators will be logical testing management criteria, which assist the Department to push up standards in areas where improvement is needed. As standards improve, so new KPIs can be set and others re-set if necessary to make them more challenging. This is the way public services contracts operate. In this way everyone becomes clear on where the emphasis lies and what they need to do. They give a focus not only on the PVP contractor but also hold the Department to demonstrate accountability, that the service is being properly managed. The whole point is that suppliers are challenged to continually improve. Q Will disease disclosure rates be used as KPIs? A No. KPIs will relate to contract management factors. Disease disclosure rates however are useful as a background measure of overall testing quality, across the country and between testing groups, providing like for like comparisons are made. Q What are the KPI’s being judged against and can we see them before the contract is published? A Unfortunately, as is normal with public services contracts, no part of the contract can be released before the complete contract is published. KPI’s are related to the management of the contract, e.g. the timeliness of standard data returns to DARD. They will not be related to events that may not be within the control of the practice, e.g. the disclosure rate of reactors. We will set levels for compliance year by year and expect an improvement in performance over the years of the contract at a gradual pace. As with any government contract there is an expectation to improve delivery/performance over the term of the contract. Q Surely it will be important to practices that new vets are approved to TB test without undue delay? A DARD recognises that private sector businesses need an undertaking that there will be no undue delay in parts of the process that the Department is responsible for. We will set a challenging customer service target for the time for supervision of a new vet who has been declared to us by a practice as ready for TB testing assessment. Q You are proposing to have one or more meetings with the lead person in the practice each year to cover performance standards. Will this be reflected in the DVO’s KPI if these meetings do not happen? A The contract requirements leave DARD with commitments as well as PVPs. Failure to meet contract specifications for which DARD is responsible could expose the Department to criticism and we will be seeking to ensure that this does not happen. Q If moving from APHIS to NIFAIS causes disruption or delays which impact on practices’ ability to meet KPIs, will this be taken into account? A DARD will seek to ensure a seamless transition from APHIS to NIFAIS in terms of support for PVP testing services. Should a problem arise there is scope in the contract to make special concessions. Q If there is a delay in issuing the contract (due to be issued on 1 March 2016) does the deadline date for practices to sign up (31 March 2016) remain the same? A No, the timings were indicative and you will have the 30 days from the issue date. We are obliged to give 30 days to service providers to consider the new contract. If the contract is not published on 1 March as you have been advised then everything will slip back. The current contract would continue past 10 April 2016 under that circumstance. Q Why do contracts need to be returned by the end of March of when the new contract isn't due to commence until 11 April? A The earlier contract documentation is completed and returned, the more chance DARD will have processed it by 10 April 2016 and return a letter of acceptance. Practices will therefore have a seamless transition into the new testing contract. Unapproved practices will not be able to test on or after 11 April 2016. DARD reserves the right to bring tests previously allocated to practices back in-house for DARD vet completion and/or to contact individual farmers to seek an amended nomination for their future testing. Q If PVP’s decide to opt out of the contract how will this impact on their customers? A Following the standard 30 day contract consideration period proposed through the month of March 2016, DARD will have some 10 days to approve all remaining applications before the new contract commences on 11 April 2016. During this time DARD will check with previous service suppliers where applications are outstanding to see if they are considering signing up. We will emphasise that the services they provide to their farming clients will be disrupted if action is not taken. Unapproved practices will not be able to test on or after 11 April 2016. DARD reserves the right to bring tests previously allocated to practices back in-house for DARD vet completion and/ or to contact individual farmers to seek an amended nomination for their future testing. Q Vets in the ROI get more for testing because farmers pay them directly. Should DARD not take this into account? A The fees charged in the ROI for those tests paid for by farmers are dictated by market forces. However the Department in ROI pays for a percentage of herd tests and it is their fees we have used in our benchmark comparisons. The Department has no policy on farmers paying private vets for testing and existing legislation does not support this arrangement here. Q Why is the Department retaining any TVO/ VOTs? A This DARD in-house staff resource affords a valuable flexibility to the Department. The PAC in 2009 also recognised the value of having an independent comparison for testing outcomes from contracted out testing services. We must ensure best value for money and this incorporates the cost, quality and sustainability of the service, all of which have been addressed in this contract. TVO/ VOT statistics will afford the Department a degree of benchmarking of PVP performance. We are seeking to put in place a fair price and need also to ensure we receive quality services. We want competent trained testers to detect the disease earlier and prevent the spread and spiral of infection. Initially we may see increased costs and compensation but over a period of time this should reduce disease incidence. Q There is a feeling amongst PVPs in some parts of the country that TVO/ VOTs pick and choose tests and hand back difficult, time consuming ones and PVPs get more than their share of these. What will the Department do about this? A This is a matter for DARD management and outwith the current discussion on the future PVP testing contract. However under the new contract the Department wishes to keep track of testing outcomes, assessed fairly and comparable across the two groups of testers. Q Testing facilities on-farm are not always what they should be. If DARD wants the best possible testing then should DARD not seek to improve animal handling facilities on some farms? A Good health and safety provisions and smooth animal handling facilities go together so this is why DARD has been working with PVPs for some years to identify poor facilities and to address weaknesses. The practice principal has responsibility for the H&S of his/ her staff. A dynamic risk assessment should be carried out before beginning a test and you should not start if there are H&S concerns, which cannot be resolved in liaison with the herd keeper. If the farmer does not rectify the issues and the issue remains, you can contact the local Veterinary Service Group 4 technical officer who will take follow-up action to ensure that issues are addressed by the farmer. Under the future Farm Business Improvement Scheme there is likely to be future financial support for animal handling equipment and, possibly, facilities. PVP representatives are accompanying DARD veterinary staff to discuss animal handling issues and needs with DARD RDP scheme planners in late January 2016 with a view to advising on what is important from the veterinary and animal handling points of view. Q We have heard there will be a role for practices to audit and monitor their own testing employees and there will be some additional record keeping requirements and a compulsory half day annual training seminar for testers. Why was it only the price paid to the practice that was included in the fee benchmarking exercise? A We have compared like with like. Practices in GB have similar responsibilities to what we are asking for, even although they report to the Veterinary Delivery Partner rather than Government. The position for practices there is the same as we are proposing here, that practices have to quality assure the testing work of their vets. DARD is providing free annual Continuing Professional Development in testing matters. Q Who is responsible for overseeing the pre-approval 250 animal tests for new assistants? A An approved veterinary surgeon tester (AVS) acting on behalf of the practice’s contract holder or the practice principal will have to be present and personally observe the assistant for the entire 250. Q Will the 250 need to be certified? A Yes, in effect. The assistant cannot be presented for testing authorisation until the preapproval requirements have been met and the contract holder can stand over this. Q If practice principals become more responsible for quality under the new arrangements, should DARD not do less auditing and supervision? A Yes, eventually when recognition of practice standards has been established. In the interim DARD will re-focus supervision resources where it stands to get the most reward for effort. Checks and balances will ways be necessary to show public money is being spent wisely. Q Can the contract be varied? A Yes. Minor changes can be achieved as a 'variation' by agreement of both parties. Material changes will require a new contract to be put in place. Q Can fees be increased during the contract? A This is possible but there would need to be good justification, sufficient to convince Departmental governance experts. The arguments would need to be articulated in a revised business case and affordability identified. Q Are the Scottish rates included in the benchmarking exercise? A Yes, including the 10% increase in 2015. Q Am I correct in my understanding of the table in the slides that if you test one animal the rate is £52.00 + £2.50 headage? A Yes. Q How long will the contract last and will the fees remain set for the length of the contract? A At the moment the contract is set for 5 years and the fees will remain constant. Q If the fees increase in the other regions can the rates here be revised? A Rates are set for the term of the contract but if there is a strong, valid reason for changing the contract, it can be considered. However a revised business case would have to be established to demonstrate this is justifiable. Q Will everyone be able to carry out risk testing? A DARD is taking legal advice on this at present, e.g. whether higher risk herd tests could be restricted to more experienced testers with proven track record under the new contract. This question will be resolved before the contract issues and you will be advised of any possible implications. Q Will fees be indexed? A No. Q What happens if the costs of the service become too much for the practice to absorb? A This is a risk that the practice must consider when taking the responsibility to deliver testing and before signing the contract. Q Will PVPs still be guaranteed 90% of AHT’s? A We cannot guarantee a volume of testing for practices since the contract does not seek to limit testing which can be allocated to PVPs. Disease levels also fluctuate and are currently rising. In the immediate term we do not foresee any reduction in testing volume allocated to the private sector. Q Does the DNA tagging apply to both reactors and IC’s? A The requirement will be to DNA tag those positive animals identified by the PVP tester (at the interpretation level that the PVP was asked to test at e.g. standard or severe). There will be a delay in implementing this new requirement as legislation needs to empower the PVP to carry out this activity. Section 2 - Questions relating to DARD’s wider strategy for TB eradication Q Why are you introducing the new testing contract ahead of the TB Strategic Partnership Group (TBSPG) report? A Essential skin testing services will be required no matter what additional measures TBSPG recommends. The Department needs to show value for money from its testing programme as a matter of urgency now GB has put their testing on a firmer contractual footing. DARD has had on-going discussion with TBSPG and they are fully informed and supportive of the changes. Q What will you do about TB risk from badgers? A The TBSPG is currently considering all aspects of the TB programme, including how best to address the risk from badgers. Q DARD has previously referred to greater partnership working between DARD and PVPs, yet why are the benefits still unclear to PVPs? A A new collaborative focus on TB involving private vets, farmers and DARD is one aspect of considerations being considered by the TBSPG. The proposed testing contract places PVPs on centre stage to carry forward testing of their client’s herds into the future. This position may in future offer other benefits to farmers, PVPs and DARD. Q In the future will PVPs have an increased role in dealing with breakdown herds, e.g. testing them clear or contributing to the disease investigation? A Whereas any testing of these herds falls under this contract, any additional activities for PVPs over and above the testing services, e.g. contributing to disease investigation, would need to be separately funded and procured. Q Can the test following the disclosure test be allocated to the practice in order to build on the farmer-PVP relationship? A Any test can in theory be allocated to a practice nominated by the farmer. DARD will consider the most appropriate allocation of test types to PVPs going forward and, in theory, there is no impediment to PVPs doing more restricted herd tests, to clear diseased animals out of a herd. This will be considered in more detail by the Department once the TBSPG report is received. Q If PVPs sign up for the new contract and TBSPG recommend other additional work for practices, can this contract be changed? A Changes considered to be minor can be made by variation if agreed by both parties. Material changes would require a new or additional contract. It is unlikely that any significant new work will be brought into this contract. New activities for PVPs, particularly if they do not directly relate to carrying out the TB test itself, would probably be taken forward in a separate contract. DARD has and will continue to engage with TBSPG to ensure there is synergy as far as possible between the new contract arrangements and the considerations of TBSPG. Q How will the new testing contract reduce TB herd incidence (of some 7%); do other factors not need addressed as well? A Yes all factors must be considered. The TBSPG is considering the wider strategy for the TB programme going forward and a report is expected later this year. The quality of TB testing is very important in reducing the possibility of infection spreading within and between herds. Disclosing disease at the earliest opportunity, through close attention to the testing process, will assist in removing diseased animals earlier which in turn will reduce opportunities for disease spread and so contribute to reducing the herd incidence. Q Is it fair to compare DARD vets and PVP disease disclosure rates? A It is important to have some independent measure of testing performance by contractors. At the country-wide level we can statistically compare disease disclosure rates in both groups of testers, adjusted for various factors that could cause misleading results. As we go forward this measure and other national level performance levels can be used to determine where DARD and PVPs need to focus more effort. Q We can see DARD is trying to adjust rapidly to reduced staff levels, which don't always match where the staff can best be reduced. Will this not inevitably mean that work which might have gone to PVPs will be retained by DARD? A It is true that the Voluntary Exit Scheme's primary objective was to reduce the NICS headcount for budgetary reasons and that this was largely non-selective. Some remodelling of work for remaining Veterinary Service staff is necessary but this should not adversely impact on the level of professional veterinary services provided by PVPs. Q In the ROI where one VO discloses the reactor and a different VO does the second test, do the statistics not indicate that the first VO missed the reactor? A We’ll keep this in mind when considering KPI reporting. Q Why is there a need to have 2 people on farm TB testing and blood testing? A This is efficient from the farmer’s point of view. DARD is working towards total cessation of Brucellosis sampling in downwards steps over 5 years and considers it appropriate to retain in-house staff for this work for the present. Q What is happening with lay testing? A Nothing can be ruled in or out. The Department reserves the right to consider Lay Testers as an option. There are no immediate plans to proceed with TB lay testing and consideration will first have to be given to wider recommendations for the TB programme coming forward from the TBSPG report. Q How do TB programme admin cost here compare to GB? A It is hard to make a like for like comparison. It must be noted that DARD staff costs include the TVO/VOT testers as well as other professional, technical and admin support staff engaged in the programme. Staff costs are likely to continue to be reduced as a result of Government efficiencies but these matters are for the Department to consider and take forward. A number of DARD internal reviews are focusing on such issues at present across the wider Department.