{meta} Decision - Request for Approval - Contract Extension - Salford Handyperson Service

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, as chair of the Procurement Board, in exercise of the powers conferred on me by the Scheme of Delegation of the Council do hereby approve:

The extension of the Contract for the Salford Handyperson Service as detailed in the table below:

Detail required

Contract Reference

Title/Description of Contracted Service/Supply/Project

Salford Handyperson Service

Name of Contractor

Swinton Community Business t/a Helping Hands

Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

SME

Value of Contract Extension

£350,000

Per Annum (estimated average)

Existing Contract Term

01/04/2016

to

31/03/2019

Extension Period Requested

01/04/2019

to

31/03/2021

Contact Officer (Name & number)

Caren Green (0161 793 2835)

Lead Service Group

Place

Funding Source

Capital Programme


The Reasons are:   

 

Procurement Board granted approval on 29th April 2015 to go out to competition for the Citywide Handyperson service. The contract was awarded for an initial period of three years, with two optional extensions of 12 months each.  The extensions require approval by the Procurement Board. The initial 3 year period of the contract will expire on 31st March 2019.

 

Provision is made in the Council’s Private Sector Housing Assistance Policy for the Council to provide handyperson services and the policy sets out the eligibility criteria and the types of works which are expected from the delivery of the contract.

 

An OJEU compliant tender process was undertaken appointing Swinton Community Business t/a Helping Hands as the successful provider from April 2016.

 

An extension is in the best interests of the Council as the current provider is delivering a valued service that is meeting all contractual requirements. There is a robust business case for the extension of the Citywide Handyperson Service that includes evidence of the social value of the contract investment, good support from a wide range of professional stakeholders and demand from an important older, vulnerable demographic.

Members of the Procurement Board have expressed the view that there is merit in awarding an extension for the two additional years at this time in order to facilitate maximising value for money under the contract. 

Options considered and rejected were: Not to extend the Contract 


ASSESSMENT OF RISK: 

 

Medium: the contract will continue to be managed through established arrangements, which have been audited internally. It will be managed and monitored by a Contract Management Group and will comply with the performance and quality requirements of Salford City Council. As per existing arrangements, project management and further support will be provided by officers of Regulatory Services. Expenditure of the capital funding is monitored through the Housing and Regeneration Capital Programme Monitoring Group.

 

If the service is decommissioned it should be recognised that this contract is the main funding of the current provider and it will put at risk a significant number of the 19 posts currently managing and delivering the handypersons service.

Risk relates to the implications if the scheme does not continue or any risk if there is a potential delay in extending the contract.


SOURCE OF FUNDING:  

The Housing Capital Programme 2019/20 and 2020/21 - subject to approval through the annual budget setting process.


LEGAL IMPLICATIONS Submitted by: The Shared Legal Service

Tony Hatton, Principal Solicitor, tel. 219 6323

 

When commissioning goods, services or works the Council must comply with the public procurement regulations and its own Contractual Standing Orders (CSO’s). In that regard, the handyperson services contract described in the report was awarded in 2016 for a 3 year period with the option to extend for up to 2 further years.

 

It is an established principle that an existing public contract is capable of being extended (or modified providing any modification does not affect the overall nature of the contract) where the original agreement makes provision for the extension. CSO’s also allow for contract extensions to be made.

 

When the contract was originally awarded, it was clear that the initial term would be subject to a potential extension of two years, hence any risk that any extension granted could be subject to realistic challenge by an aggrieved provider, on the basis that it ought to have been put out again to tender and advertised in accordance with public contract regulations and CSO’s, is extremely low, and the option to extend within the original agreement is now being properly exercised.

 

It is not clear in the report what the value of the extension may be, but in accordance with CSO’s, where provision is made within an existing contract for an extension to the term, and the value is over £150,000, approval should be sought from Procurement Board.


FINANCIAL IMPLICATIONS Submitted by:  The Finance Team

Natalie Birchall Tel, 2316 06/02/2019

 

The proposal to extend the agreement for a further 12 month period from 1st April 2019 to 31st March 2020, will be funded from the 2019/20 approved capital programme.


PROCUREMENT IMPLICATIONS: Submitted by:  The Corporate Procurement Team, Deborah Derbyshire x 6244 

There was provision within the existing tender for the option to extend for a further one year, therefore this complies with the Public Contract Regulations and the City’s Contractual Standing Orders.

Going forwards a full analysis of the service will be carried out and approval requested before a procurement process is undertaken.


CONTACT OFFICER:     Caren Green                       TEL. NO. 0161 793 2835


This decision is not subject to consideration by another Lead Member

The appropriate Scrutiny Committee to call-in the decision is the Growth & ProsperityScrutiny Panel

 

Signed:         BILL HINDS                                 Dated:           13 March 2019                                  

                     LEAD MEMBER


 

This decision was published on 14 March 2019.          

This decision will come in force at 4:00 p.m. on 21 March 2019 unless it is called-in in accordance with the Decision Making Process Rules.

 

Publication date: 14/03/2019

Date of decision: 13/03/2019

Decided at meeting: 13/03/2019 - Procurement Board

Effective from: 22/03/2019

Accompanying Documents: