Purpose

The purpose of this report is to seek approval, in accordance with Contract Procedure Rule 7.7.6 for the award of a contract that exceeds the approved budget by more than 5% to the winning bidder as identified in Appendix B for Extra Care Housing in Arncliffe Gardens from 06 May 2024 to 05 May 2027, including options to extend for further periods of time up to a maximum of 24 months in aggregate, to 05 May 2029.

The reason for the decision is that a compliant procurement exercise has been undertaken in accordance with Contract Procedure Rule 7, and the winning bidder has been identified as providing the most economically advantageous offer to the Council.

Decision

By Executive Director (Resources) Care):

(i)       That, in accordance with Contract Procedure Rule 7.7.6 permission be granted to award a contract where the quotation proposed for approval exceeds the approved budget by more than 5%.

By Executive Director (Health and Social Care):

(ii)       That, subject to Contract Procedure Rule 7.7.6 approval, a contract be awarded to the winning bidder as identified in Appendix B for Extra Care Housing in Arncliffe Gardens from 06 May 2024 to 05 May 2027, including options to extend for further periods of time up to a maximum of 24 months in aggregate, to 05 May 2029.

(iii)      That, the Procurement Team be authorised to make the necessary arrangements for the issue of the relevant contract documentation after conclusion of the call-in period and standstill period.

(Note: the details of the successful bidder cannot be published at this stage as a standstill period currently applies.  Once the standstill period ends and the contract award is confirmed, these details will be published here and on the related report).

Alternative options considered

Do Nothing: This option was considered and rejected because Arncliffe Gardens is a new purpose-built extra care scheme designed to meet the accommodation needs of both older people and all age adults with specialist care needs to enable them to live independently for longer. Doing nothing is likely to mean that the apartments would be let by the landlord, Plus Dane, to people with and without care and support needs. In these circumstances, the Council would spot purchase care for people living in the scheme via the Pseudo Dynamic Purchasing System (PDPS) For Domiciliary Care Services for Adults Including Older People. This would mean the scheme would not have staff on site 24 hours a day, 7 days week which is likely to mean that people with higher support needs would be unable to live in the scheme and may require alternative, more expensive, services such as residential care.

Deliver in house: This option was considered and rejected due to insufficient capacity within the current staffing structure.  The cost pressure of recruitment and retention of internal staff is prohibitive with the external market being more cost effective. 

Re-Tender: Consideration was given to retendering the service, but this was not pursued as the proposed rates for the service reflect the current market price including the recent increase in the Real Living Wage from 1 April 2024. Furthermore, the extra care scheme is due to open in May 2024 so retendering the contract would cause significant delays to the service opening which would have a detrimental effect on people waiting to move into the scheme.