Purpose

The purpose of the report is to seek approval in accordance with Contract Procedure Rule 12.2.3(c), to modify the contract with the contract with Mersey Care NHS Foundation Trust Contract for delivery of the Healthy Knowsley Service, to include an increase in the original tendered rates for the remaining extension period of twenty-three months from 1 May 2024 to 31 March 2026.

The justification for the decision is to enable continued delivery in line with the current contract, which accommodates primarily increases across 2 subcontracts, Agenda for Change for NHS staff, NHS estates, and inflationary cost pressures since the commencement of the contract in April 2020.  An increase in the overall contract value has become necessary and a change of provider at this point would cause significant inconvenience or substantial duplication of cost to the Council, and the total value of the modification is less than 50% of the original contract value. This is reinforced by compliance with Regulation 72(1)(f) of the Public Contracts Regulations 2015 as the value of the proposed modification is less than the threshold for such a contract award and represents less than 10% of the original contract value.

Decision

(i)       That in accordance with Contract Procedure Rule 12.2.3(c), the contract with Mersey Care NHS Foundation Trust for delivery of the Healthy Knowsley Service be modified, to include an increase in the original tendered rates for the remaining extension period of twenty three months from 1 May 2024 to 31 March 2026; and

(ii)       That the Procurement Team be authorised to issue the relevant contract modification documentation.

Alternative options considered

Do Nothing: An options paper has been put forward by Mersey Care for the continued delivery of the Healthy Knowsley Service and what a reduced service offer would look like if the request to increase the contract value was not approved. The option to keep the existing budget and not seek an increase in the current budget has been rejected due to the service having already increased capacity to meet demand by utilising fixed terms posts, meeting increasing costs associated with Agenda for Change for the next two years, room hire e.g., NHS estates, and inflationary increases on current subcontracting arrangements.

Seek Competition (Quotation / Tender): this has also been rejected at this point as the provider is continuing to perform well and the service is considered a vital component in the wider system of Early Intervention and Prevention, supporting people to improve their health and wellbeing i.e. a single point of access for our GPs, who can refer directly from their Egton Medical Information Systems  (EMIS) to the Healthy Knowsley Hub. From a commissioning perspective there is no justified reason at this point to go through a procurement exercise; the service is in the final 2 years of the contract following approval of the final 3 years extension period 2023 -2026 via delegated decision report: Reference No: WLC/32/2023-24.