Purpose

The purpose of this report is to seek ratification of non-compliant decisions in relation to the Property and Licence Agreement Management Service for the Council’s dispersed Temporary Accommodation contract with SHAP which involved modifying the terms of the contract originally agreed (where such modifications were provided for in the contract) by adding two further blocks of  five properties to the contract (one block in August 2022; and one block in April 2023) without having sought prior approval in accordance with Contract Procedure Rule 12.2.3(a).

The reason for the non-compliance is: Commissioners at the time did not realise that whilst changes  in the  number of properties managed was specifically provided for in the contract, permission to increase the number of managed properties had to be secured via formal approval.  This formal permission was therefore not sought and authorised via the correct procedure in accordance with Contract Procedure Rule 12.2.3(a). This was only brought to light during a procurement exercise to extend the contract. This has since been acknowledged and is therefore the purpose of this ratification report under Contract Procedure Rule 12.5.

The reason for the ratification is: The Council discharges its statutory homeless duty to provide temporary accommodation to households to provide temporary accommodation to residents whom they have reason to believe may be homeless, eligible for assistance and in priority need. The Council meets this duty primarily by using dispersed accommodation across the borough which is managed by an external provider. The current contract specification includes the scope and a pricing structure to increase the management service to properties brought into the portfolio and used as temporary accommodation to meet demand and reduce pressure on hotel use. The ratification of the previous non-compliant decisions to increase the number of properties under the property management service is necessary to formalise what was previously put in place on an informal basis.

Decision

i)        That, in accordance with Contract Procedure Rule 12.5, the following non-compliant decisions in relation to the Property and Licence Agreement Management Service for the Council’s dispersed Temporary Accommodation contract with SHAP be ratified:

(a)      modifying the terms of the contract originally agreed (where such modifications were provided for in the contract) in August 2022 having not sought prior approval in accordance with Contract Procedure Rule 12.2.3(a) to add a block of five further properties to be managed by the provider; and

(b)      modifying the terms of the contract originally agreed (where such modifications were provided for in the contract) in April 2023 having not sought prior approval in accordance with Contract Procedure Rule 12.2.3(a) to add a block of five further properties to be managed by the provider; and

(ii)       That the Procurement Team be permitted to issue retrospectively any relevant contract modification documentation.

Alternative options considered

The option not to ratify the non-compliant decisions has been rejected on the grounds that the ongoing modified contractual relationship needs to be formalised to ensure that a property management service is provided to all of properties and occupants who are in the Council’s portfolio of dispersed Temporary Accommodation.