{meta} Decision - Request for Approval - Contract Award - 0-19 Children's Integrated Health 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 Paul Dennett, City Mayor, in exercise of the powers contained within the Council Constitution do hereby:

(1)    Approve the extension of Contract for 0-19 Integrated Children’s Health Service as detailed in the table below:

(2)    Approve a new timeline for the revised procurement process for this contract, to begin in January 2022.

 

Detail required

Answers

Contract Reference

Title/Description of Contracted Service/Supply/Project

0-19 Integrated Children’s Health Service

Name of Contractor

Salford Royal NHS Foundation Trust

Type of organisation

(to be supplied by Corporate Procurement)

Other

Status of Organisation

(to be supplied by Corporate Procurement)

Non-SME

Value of Contract Extension

£5,327,472

Per Annum (estimated average)

Existing Contract Term

01/04/2017

to

31/03/2022

Extension Period

01/04/2022

to

31/03/2023

Contact Officer (Name & number)

Steven Gavin (0161 686 6287)

Lead Service Group

Public Health

Funding Source

Grant

Ethical Contractor

Mayor’s Employment Charter

Committed to sign up to the Charter

 

Accredited Living Wage Employer

The reasons are

·       To defer the proposed procurement process to a more stable time when the current pandemic has largely passed, when an appropriate level of market engagement is more likely and there is no possibility that any potential bidding provider could be disadvantaged compared to another.

·       To allow for Salford Clinical Commissioning Group transitioning into an Integrated Care System and for changes in the local commissioning landscape to settle.

 

Options considered and rejected were

·       To enter the procurement process regardless, as planned within the original timeline.

Assessment of risk

 

·       Changes to the regional/local health commissioning landscape and the move to an Integrated Care System may result in unforeseen consequences for 0-19 operational service delivery, which cannot be anticipated.

·       Covid-19 greatly impacts of the ability of some potential providers to participate with market engagement activities within the procurement process, which could prove disadvantageous to some over others.

·       Were the latter to occur, this could potentially expose Salford City Council to a legal challenge about the procurement process from providers who considered themselves disadvantaged in this way.

 

The source of funding is The Public Health Grant

Legal advice obtained

 

Tony Hatton t.hatton@manchester.gov.uk

 

When commissioning contracts for the procurement of goods, services or the execution of works, the Council must comply with the requirements of the Public Contracts Regulations 2015 (PCR) and its own Contractual Standing Orders (CSO’s), failing which a contract may be subject to legal challenge from an aggrieved provider.

 

The extension of the contract for Salford’s 0-19 provision of services referred to in the report has been requested to ensure continuity of statutory services. It is an established principle that an existing public contract is capable of being extended, but where the original contract does not make provision for such an extension of the original term, and if done outside of the usual tender process, or outside of the scope of CSO’s, there is always a risk that any extension could be subject to challenge by an aggrieved provider, on the basis that it ought to have been put out to competition.

 

The risk of challenge increases in tandem with the value and proposed length of the contract. In this instance, as noted in the report, the proposed term is relatively short. To mitigate the risk, it could be argued that these proposals are merely a delay in the competitive process, not avoidance, whilst the Council looks to procure the service once the covid-19 pressures ease. The extension with the existing providers with proven ability to meet the requirements of the service users would be argued to be more cost effective and efficient under the circumstances, in addition to the provision of continuity of support to these vital services.

 

In responding to COVID-19, the Council may enter into contracts without competing or advertising the requirement so long as they are able to demonstrate that there isgenuine reason for urgency and the events were unforeseeable. Following the Cabinet Office guidelines Regulation 72 of PCR specifically sets out where contracts may be modified without a new procurement procedure.  

 

The following conditions must apply:

 

(i) the need for modification has been brought about by circumstances which a diligent contracting authority could not have foreseen; 

(ii) the modification does not alter the overall nature of the contract; and

(iii) any increase in price does not exceed 50% of the value of the original contract or framework agreement;

Or in any event where the variation (irrespective of its value) is not considered substantial, which also appears to be satisfied in these circumstances.

 

This justification demonstrates that the decision to extend these particular contracts was related to the COVID-19 outbreak, and having has considered the circumstances in this matter and concluded that the recommendation to extend the services as described is considered to be of least risk and of most benefit to the Council.

 

Further reasons for approving the extensions are set out in the body of the report, and the risk of any challenge to the extension proposed could be described as low.

Financial advice obtained

 

Michelle Cowley (Michelle.Cowley@salford.gov.uk) 0161 793 2520

Consultation and discussions are ongoing with the current provider, in relation to the financial implications of awarding a further contract extension.

 

Therefore, an agreement for a contract extension for 2022-23 is sought on the basis that the existing provider agrees to do so within the same financial envelope as in 2021-22. Further updates will be provided when an agreement with the existing provider is reached.

 

Procurement advice obtained

Chris Conway (christopher.conway@salford.gov.uk) 0161 686 6248

Procurement acknowledge the contents of this report and confirms that time will be scheduled to undertake a re-tender exercise moving forward, it is noted that the rationale for approving the 12-month extension is in line with Cabinet Office guidelines covered within Regulation 72.

HR advice obtained

Not applicable.

Climate change implications obtained

Not applicable.

Documents used

The relevant documents contain exempt or confidential information and are not available for public inspection

Contact details

Contact Officer:       Steven Gavin

Telephone number: 0161 686 6287

 

·       The Lead Members for Children’s Services and Young People’s Services, as well as Adult Services, Health and Wellbeing have been consulted and are supportive of the proposed contract.

·       The appropriate Scrutiny Committees to call-in the decision are the Children’s Scrutiny Panel and the Health and Social Care Scrutiny Panel.

 

Signed:     PAUL DENNETT         Dated:  22nd April 2021.

                    City Mayor

 

*         This decision was published on 22nd April 2021  

*         This decision will come in force at 4.00 p.m. on 29th April unless it is called-in in accordance with the Decision Making Process Rules.

 

Publication date: 22/04/2021

Date of decision: 21/04/2021

Decided at meeting: 21/04/2021 - Procurement Board

Effective from: 30/04/2021

Accompanying Documents: