Purpose

Extra Care services are currently delivered by two providers in six schemes. The contract was due to run until 1 April 2027. Work had begun on re-procurement with a timetable that included a report to the Overview and Scrutiny Committee and seeking approval from the Cabinet in September 2026. Then one of the two current providers formally served notice and cannot continue operating beyond the end of October 2026. It has lost key staff and stated that it will not recruit additional staff due to the financial viability of the service.
This affects 3 Extra Care schemes which supports c. 120 people (of which 108 are funded by Adult social care).
The service provides regulated personal care in an accommodation setting.
Without a contracted provider the Council would not be fulfilling its statutory duty and would leave those service users in a vulnerable position.
Th contract value is c. £2m per year (£8m across the duration of the 4-year arrangement should all available extensions be taken).
It was therefore requested to commence procurement activity immediately and seek a new provider to be fully operational by 1 November 2026. This allows time for a compliant procurement exercise in line with Contract Procedure Rules (CPR) and TUPE considerations for staff.
To ensure this is in place the procurement needed to commence in the week commencing 27 July 2026.
To further expedite the process, the tender opportunity will have requirements that ensure only providers able to deliver and mobilise swiftly are considered.
The contract for the second provider will run until 31 March 2027 so there is a longer mobilisation period for the successful tenderer for this Lot.

Decision

To approve procurement of Extra Care Services at six different schemes in two lots. Lot 1 to start on 1 November 2026, Lot 2 to start on 1 April 2027. Funding for this comes from Adult social care budgets. The service is currently operating. The contract is for an initial 2 years with a potential extension of a further 2 years.

Alternative options considered

Options to consider a different type of delivery have been considered. This included making a Direct Award to a provider who would be willing to take on the service and absorb the TUPE of staff. However following advice and consideration of the CPR it was concluded that the only compliant option was to complete a full procurement exercise.