{meta} Decision - Request for Approval - Contract Extension - Foundations Support & Care Services

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Decision:

Salford City Council - Record of Decision

 

I, Councillor Bill Hinds, Lead Member for Finance and Support Services and chairman of the Procurement Board, in exercise of the powers contained within the Council Constitution, do hereby approve:

 

A two years’ extension to the contract for Foundations Support & Care Service as outlined in the table below:

 

 

Detail required

Example

Contract Reference

Title/Description of Contracted Service/Supply/Project

‘Service A’ Supported accommodation for vulnerable young people who are homeless, have a learning disability or are care leavers. (AKA Claremont)

 

‘Service B’ Supported accommodation service for care leavers. ( AKA Lane End)

Name of Contractor

Foundation UK Ltd.

Type of organisation

(to be supplied by Corporate Procurement)

Status of Organisation

(to be supplied by Corporate Procurement)

Value of Contract Extension

£457,106,94

()

Existing Contract Term

01/01/2016

to

31/03/2019

Extension Period Requested

01/04/2019

to

31/03/2021

Contact Officer (Name & number)

Jane Wright  603 4196

Lead Service Group

Funding Source

 

The Reasons are:-

 

 We have negotiated with this provider to offer a further annual saving to the City Council to the value of £16.5K.  This saving will not impact on the direct delivery of services to young people and will be achieved through a reduction in back office administrative function when a member of staff due to leave is not replaced.

Options considered and rejected were:-.

 

Assessment of Risk:-

There are no other services within the City that are currently set up that would be able to offer this type of support and therefore there would be a risk associated with either dispersal of services or with a new provider operating from the same site.

 

Commissioners have a good knowledge of the market and this indicates there would be significant risks associated with any potential new provider in relation to quality and cost.

 

There is a risk of losing a recently refreshed (during the life of this contract) and established good professional working relationship between commissioners and the provider which is serving our young people well through their responsiveness to continuous improvement and best value in place through robust monitoring and open dialogue.

 

There have been a number of young people who have been evicted from 16+ placements outside this scheme and this can increase the cost when searching for alternative placements as providers will not make offers for some of the more complex young people without a premium payment.

 

Both Lane End and Claremont are operating to high standards and the reputation of both provisions within the care community is well known and respected.  Pathway advisors and other professionals tell us that young people aspire to live in both of these homes and there are no other 16+ provisions as far as commissioners are aware, of which the same could be said.

 

Another operator is unlikely to be able to bring the longevity stability and experience of working with this client group which benefits our young people.  This is a small family business with strong leadership, both Directors have significant experience and other members of the team are long serving, demonstrating the commitment to staff and being a good employer.

 

The source of funding is:- Children’s Services Revenue Budget

 

Legal Advice obtained:-

 

When commissioning contracts for the procurement of goods, services or the execution of works the Council must comply with the Public Contract Regulations 2015 as well as the provisions of its own Contractual Standing Orders (CSO’s), Financial Regulations and the duties of Best and Social value.

 

It is an established principle that an existing public contract is capable of being extended and CSO’s also allow for extensions to be made where the original contract makes provision for such an extension of the original term. Where the value of an extension exceeds £150k, this should be approved by the Procurement Board. The Report sets out the detailed reasons and need to extend the contract and the benefits to the Council.

 

The Council is also under a best value duty to carry out its functions economically, efficiently and effectively with the objective to achieve value for money in all public procurement, and once approved the extension will commit the Council and Foundation UK to the two year period set out in the report.

 

Financial Advice obtained:-

                                                       

£457,106, 94 is inclusive of the contract with Great Places Housing Group for the rent of the building. The contracts will be funded from existing core revenue budget within Childrens Services.

Procurement Advice obtained:-

 

The annual value recorded on the Contract Register with Foundations is £457,106.94 per annum which will be revised to £440,606.94 per annum from the 1st April 2019 saving £16,500 per annum.

 

It is acknowledged in the current contract with Foundations that the buildings they operate from are owned and managed by the landlord Great Places and that an excluded licence agreement has been included within the current foundations contract for this provision.

 

It is further understood that SCC have been paying Great Places directly for this licence for £92k per annum which is not included in the Committee Report. 

 

It is Procurements Recommendation to extend the current contract for an additional 1+1 period on the proviso that:

 

·       A variation of contract be drafted by Procurement for the Foundations contract which will reduce the Annual value to £440,606.94.

 

 

Contact Officer:  Jane Wright                            Tel No 0161 603 4196

 

 

The Lead Member for Children’s and Young People’s Services has been briefed on, and is supportive of, the recommendations in the report. 

 

The appropriate scrutiny committee to call-in the decision is the Children’s Scrutiny Panel.

 

 

Signed:      BILL HINDS                          Dated:    09 January 2019                                                    Lead Member

 

 

 

FOR DEMOCRATIC SERVICES USE ONLY

 

This decision was published on 09 January 2019.

This decision will come in force at 4.00 p.m. on 16 January 2019 unless it is called-in in accordance with the Decision Making Process Rules.

 

Publication date: 09/01/2019

Date of decision: 09/01/2019

Decided at meeting: 09/01/2019 - Procurement Board

Effective from: 17/01/2019

Current call-in Count: 0

Accompanying Documents: