Purpose

The report will detail the
governance process and award of the care and support provision in
three PFI Care Homes at Langley Oaks, Heavers Court and Addington
Heights comprising 150 Residential, Dementia and Nursing beds for
older adults..
The contract is a 10 year contract from 1 April 2026 with an option to
extend for a further 3 years to align with the PFI Facilities
Management Contract end date and options will be reviewed at that
time. Total contract value £85.5 million.
 
Draft
recommendation: Approval to proceed to
award the contract for the provision of Care and Support Services
supporting older adults with Residential, Dementia and Nursing
needs through a block commissioned support and care based in 3 PFI
Care Homes. To recommend the successful service provider in
accordance with the evaluation finding and procurement policy
following the completion of an open and competitive tender
process.
 

Content

For the reasons as detailed in
the Part A & B Reports and appendices, Corporate Director for
Adult Social Care and Health resolved: 
 

To agree the award of
the Older People's PFI Care Home, Care
and Support contract to the successful
tenderer and for the contract value stated in Part B of
this report, for a term of 10 years commencing 01 April
2026, with the option to extend for up to a
further 3 years. 

 

To note the name of
the successful provider will be published in accordance
with the Procurement Act and listed on the Councils
Contract Register. 

 

Reasons for the decision

The procurement strategy (PB-2324-000034-S) detailing
plans for the re-procurement of
the Care and Support in Adult Homes for the
Future PFI sites was approved in February 2024. The
tender exercise has now been completed and the provision for Older
People's service Care and support in PFI Care Homes can be
awarded. 

Alternative options considered

No 

Option  

Pros 

Cons 

Conclusion 

 

Do nothing - Allow the current
provision to conclude at the contract end and close the care
sites. 

No immediate
procurement or financial outlay 

Reduces operational complexity in the short
term. 

 

Potential loss of 150
beds locally.  

Impact to Local care
capacity and residents currently using
the facilities; 

Reputational risk for
the council and possible increased pressure on
alternative local services.  

Failure to discharge
responsibility under The Care Act.? 

The Council will
still be liable to pay back the loan to the PFI, without the
generation of income from the usage of the sites. 

Capacity in the
market to take on the high number of residents concerned would need
to be explored.? 

Rejected due to social impact
and strategic misalignment. 

 

The council or local authority
takes over direct management and operation of the care homes,
bringing services in-house. 

Greater control over quality
and operations; can directly align services with local
strategic objectives. 

Requires investment
in management capacity
and infrastructure.  

Risk of
inefficiencies if not managed effectively. 

Rejected due to council having
to invest heavily and intensive risk management
programme required. 

 

Form a partnership or joint
venture with one or more third-party providers to jointly deliver
care services. 

Shared risks
and resources. 

Access to
provider expertise combined with local authority
oversight. 

Complex governance
arrangements 

Potential conflicts
of interest; requires careful contract and relationship
management. 

Rejected due
to complexity; council currently does not have experience
and capacity to manage complex legal partnerships. 

 

Initiate a new competitive
procurement process to select a new provider to continue delivering
care services in these homes under a new contract. 
 
PREFERRED OPTION 

Can secure better
value for money 

Opportunity to
introduce improved service standards and innovation; transparent
and fair process. 

Time-consuming
process 

Potential disruption
during transition; requires resources for contract management and
oversight. 

Accepted as the
preferred option for balancing quality, cost, and
strategic alignment, provided procurement is
well-managed.