AHI S600 Substance Use Support framework - Contract Award - Attached

February 2, 2026 Cabinet Procurement and Insourcing Committee (Committee) Key decision Unknown View on council website

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Summary

...approved the establishment of two frameworks for substance use services, awarding contracts to multiple providers for healthcare and non-healthcare related support, with a total maximum cost of £16.06 million over four years.

Full council record
Content

RESOLVED:
 
1. 
To approve the establishment of a 9 lot framework for
the Provision of Healthcare related Substance Use Services, and
award a space on the framework to seven Providers, for Lots 1, 2,
4, 5, 6, 7, 8, 9 and 10,  for a maximum period of four years (2+1+1
years), to start on 1st April 2026, at a cost of up to
£11,155,000.
2. 
To approve the establishment of a 7 lot open framework
for the Provision of Non-Healthcare related Substance Use Services, and award a space on
the framework to three Providers, for Lots 1, 2, 4 and 6 for a
maximum period of four years (2+1+1 years), to start on 1st April
2026, at a cost of up to £4,905,000.
3. 
To note that the lots for which no providers were
appointed will be readvertised at a
later stage.
 
An anonymised list
of the providers recommended for appointment to each of the
contract lots is provided as Appendix 1.
 
Reasons For Decision 
 
This report provides the Cabinet Procurement
and Insourcing Committee with the outcome of the procurement of a
framework for Healthcare related Substance Use Services, as well as
the outcome of the procurement of an open framework for
Non-healthcare related Substance Use Services.
 
Previously, Single Tender Actions
(STA’s) were used to award funding to individual substance
use service providers. This was necessary owing to the short
timescales between grant funding confirmation and the window of
time in which the money must be spent. However, this approach was
resource intensive and meant that we lost the potential benefits of
a competitive procurement process.
 
The framework period of up to four years
(2+1+1) allows for learning from the initial round of contracts
awarded via the framework to inform the call off process in
subsequent years.
 
To date, grant funding has been confirmed by
the government on an annual basis with very little time to
coordinate the procurement of new services prior to each new
financial year. This necessitates a system that allows rapid
allocation of grant funding to a potentially very wide range of
providers, based on the circumstances in a given year, and that
ensures procedural compliance. Frameworks will allow contracts to
be awarded in a timely manner that aligns with the requirements of
the national grant funding.
 
The services provided as part of both
frameworks aim to achieve the following:
 
· 
Reduce the harms of drugs and alcohol throughout the communities of
the City of London and London Borough of Hackney.
· 
A City and Hackney where all individuals who use drugs and alcohol
in harmful ways are able to access relevant support to meet their
support needs.
· 
A City and Hackney where services work effectively together to meet
the needs of people who use drugs and alcohol in harmful ways.
· 
Early identification of the risk of harmful drugs and alcohol to
help ensure that escalating needs can be prevented and
addressed.
· 
A City and Hackney where the impacts of drugs and alcohol on our
communities are reduced.
 
The outcomes the services are expected to
achieve include:
 
· 
Increases in resident access to substance use services.
· 
Increase in adherence to treatment and support services.
· 
Increase in positive outcomes for individuals accessing
services.
· 
Reduction in unmet need across all drug groups used across the
authority areas.
· 
Equitable outcomes for individuals regardless of ethnicity, gender,
sexuality or health related needs.
· 
Reduction in drug and alcohol related criminality, including
trigger offences, across both authority areas.
· 
Increased cohesion between support services to allow for better
outcomes for multiple disadvantaged individuals.
· 
Reduction in drug and alcohol related death and health needs within
both authority areas
 
Alternative Options
Considered and Rejected
 
The options considered and rejected
for this procurement included:
 
Option 1: End the
current services on the scheduled end date of 31st March
2026 and do not reprocure new services
Option 2: To award
individual contracts to providers
Option 3: Wrap grant
funding into the core substance misuse service via a
variation
Option 4:
Insourcing
 

Supporting Documents

AHI S600 Substance Use Frameworks CPIC Contract Award Report- Feb26.pdf
Substance Use Contract Award Appendix 2.pdf
Substance Use Contract Award Appendix 3.pdf
Substance Use Contract Award Appendix 1.pdf

Details

OutcomeAbandoned
Decision date2 Feb 2026
Subject to call-inYes