Content

RESOLVED:
 
1. 
To approves the recommendation to join the Adaptations,
Repairs, Maintenance and Improvements (ARMI) DPS for the purpose of
selecting contractors to deliver home adaptations funded by the DFG
for our disabled residents. Commencing on 1 October 2025, up to
£7,621,000 (£6,621,000 plus up to £1,000,000 to
cover potential increases in DFG allocations over the contract
period) of DFG grant will be allocated via the DPS over the
proposed 3 year 1 month and 11 day
contract period (the existing ARMI DPS will finish on 11 November
2028). 
 
2. 
To note there is no charge to join the DPS but a 1% fee
(plus VAT) will be added to the cost of the adaptation being
processed which will be taken from the DFG allocation.
 
Reasons For Decision
 
A pilot project was completed in which the DPS
was used to complete 9 pilot cases. The trial demonstrated that the
relevant procurement stages could be carried out within the
expected timeframes. For example, each of the 9 pilot cases went
from ‘Request for Approval Submitted’ to
‘Application Approved’ in 3-6 working days which was
within the target completion time of two weeks. 
 
The trial also confirmed that the DPS was
compatible with all procedural requirements and expected working
practices within the DFG Home Adaptations service. All stages in
the process were successfully completed working with the
DPS. 
 
Further detail on the findings from trial is
available in Appendix B (Exempt).
 
The ARMI DPS was originally created by
Plymouth Council via a compliant procurement process that included
an OJEU advertisement. It is currently already used by a number of
London Boroughs including Newham, Redbridge, Barking &
Dagenham.
 
Table 1 below provides a comprehensive summary
of the advantages and disadvantages of joining the DPS which have
informed the recommendation of this report.
 

Advantage
 

Disadvantages

No annual fee

The initial set up will be time consuming and
a lot of additional work e.g. setting up cases and management
oversight.
 

1% fee + VAT per adaptation cost which
is  paid via
the DFG.  This provides a cost saving
and value for money compared to the outsourced HIA fee of 15% +
VAT

Contractors may not bid for very complex cases
such as extensions (which are rare in Hackney). So we may still be
required in exceptional circumstances to go outside of the DPS.
 

The DPS includes a Schedule of Rates (SOR).
This allows for quotes to be provided more quickly based on
standardised prices which reduces the overall time to deliver
adaptations

Use of the DPS provides access to a large
number of potential suppliers but it does not guarantee a
competitive procurement process.
 
The intention is to encourage local providers
to join the DPS in order to increase the potential for
competition.
 
The finding from the 9 case trial was that use
of the DPS increased competition with a greater range of suppliers
than would have been the case under the previous system (including
two completely new suppliers that had not previously been
used).
 

The DPS is a fully electronic online system
which has been successfully tried and tested.  This provides transparency and accountability when
processing DFG applications

Maintaining a DPS is a greater administrative
burden than traditional frameworks but this is a burden for the
administrators of the DPS rather than Hackney.

Safety checks are completed to ensure the
contractors are reputable including through the government Trust
Mark Scheme and via customer feedback.

 

The DPS is supported by the department of
health and social care in partnership with Foundations, the UK
governing body for DFGs.  This is
reflected in DFG Good Practice Guidance, under subheading heading
'Tendering Procedures’
 

www.gov.uk/government/publications/disabled-facilities-grant-dfg-delivery-guidance-for-local-authorities-in-england

 

KPI are applied that allows the progression of
the adaptation stage to be monitored

 

The DPS is an open market system which allows
any contractor to apply at any time including local businesses

 

The DPS provides transparency on contractor
capacity, allowing the DFG Home Adaptations Service to select bids
not only on cost but also on wait times.

 

DPS has a system built in to record resident
and housing association contributions and where applicable
variation costs. This system provides transparency and is
auditable

 

DPS approach ensures fair competition between
contractors

 

The DFG Home Adaptations Service can have
instant and direct communication with contractors via the DPS
system eliminating a middle person/service.

 

The DFG Home Adaptations Service are able to
upload documents e.g. OT specs, photos, drawings to allow
contractors to bid for work and provide quotes

 

The DFG Home Adaptations Service will have
greater control on reviewing quotes and additional works the
contractors add (variations) with the ability to reject or
accept.

 

The DPS can still be used by residents to
self fund adaptations who have been
assessed as ineligible for a grant.

 

The DPS provides greater flexibility including
the option to allow residents to source their own contractor
pending contractor scrutiny

 

The DPS embeds compliance with relevant
regulations e.g. Construction Design and Management (CDM)
Regulations 2015  and the Consumer
rights Act 2015

 

DPS has a 2 year backed warranty insurance in
situations where contractors go bankrupt allowing DPS to send
another contractor out to repair an adaptation that is under
warranty

 

INCIC offers support free of charge. This has
been evident through the DPS trial (Appendix B - Exempt)

 

The DPS embeds regulations including health
and safety elements which eliminates the need for the Council to
explore these independently.  This saves
the council time and resources in the long term.

 

The DPS remains open throughout its contract
duration for the admission of new contractors who satisfy the
selection criteria e.g. contractors signed up to the governments
TrustMark scheme creating flexibility
and choice

 

The DPS has built in KPIs to ensure a robust
monitoring system.

 

The DPS encourages contractors to quote based
on quality products otherwise contractors can be easily removed and
unlikely to get repeat work if workmanship is poor.  This can be captured through the complaints
KPI

 

 
In summary, the ARMI DPS has a number of
advantages. These include, additional functionalities and
performance reporting, greater transparency and access to a wider
range of contractors to increase competition and value for money,
as well as quicker and simpler processes that reduces the time
required to complete an adaptation. 
 
Alternative Options
Considered and Rejected
 
1. Do Nothing
 
The contract with the outsourced HIA is due to
end on 30 September 2025.
 
This means that once the contract expires the
Occupational Therapy service can revert back to the previous model
and obtain quotes for the recommended adaptations and the DFG Home
Adaptations Service will have to approach the contractor directly
to carry out the works.  This will be
both time consuming and reduce competition.
 
The doing nothing option will also mean that
Hackney would miss out on all the benefits of the DPS as described
under Table 1.
 
2. Make Use of the
Council’s Existing Stock Adaptation Framework
 
The Council’s Stock Adaptation Team has
an existing framework which is used for adaptation works for
Council own properties. Consideration was given to using this
framework for DFG related adaptation work. However, there were a
number of disadvantages with this approach:
 
· 
Not an open system, new contractors cannot join
· 
The framework contract is with the council and not the resident
· 
There is no flexibility to allow residents to source their own
contractor, which is an option under the DFG rules
· 
The contractors cannot be easily removed if a contractor performs
badly
· 
There is no opportunity to see contractor capacity directly from a
procurement system, therefore capacity will need to be monitored
directly with the contractor
· 
The framework approach does not provide a system to see DFG case
progression before starting the contractor selection process. This
is important as DFG has key stages such as ‘ready for
approval, funding approved’
· 
There is no option for residents to pursue their preferred
adaptations by adding their own funds. (Preferred adaptations only
agreed if it is in line with the OT recommendation)
· 
The framework contract limits flexibility therefore doesn’t
allow resident or housing association to make contribution
· 
No contractor competition
· 
Adaptations may take longer if there are only a few contractors on
the Framework. Additionally this will
limit the performance and delivery of adaptations due to contractor
capacity
 
Council Stock Adaptation Framework doesn't
provide the resident led, flexibility or monitoring functions
required to process DFGs.  On this
basis, the option of joining the Council Stock Adaptation framework
has been ruled out and will not be considered for the new DFG Home
Adaptations Service.