Decision

Salford City Council – Record of Decision

I Paul Dennett, City Mayor, accept the recommendation of the Procurement Board and in exercise of the powers contained within the Council Constitution do hereby approve:

·      an Exception to Contractual Standing Orders to award a 12-month contract (up to 1 September 2027), with existing suppliers, for Statutory/ Non-Statutory Temporary Accommodation related services in Salford, as detailed in the table below.

·      to go out to tender/ competition to undertake a procurement exercise for the establishment of a new compliant framework agreement for the provision of Statutory/ Non-Statutory Temporary Accommodation in Salford (to be in place from 1 September 2027).

• Detail required

Answers

Title/Description of Contracted Service/Supply/Project

S1401-01 – Statutory / Non-Statutory Temporary Accommodation in Salford

Procurement Reference numbers (DN and CR number supplied by Procurement)

S1401-01

Name of Successful Contractor

Cromwood Housing Ltd

Divrse Ltd

VSPG HOUSING 2 LTD

Abbotsound Limited (T/A Positive Lifestyles)

Supplier Registration Number

(to be supplied by Procurement

Cromwood Housing Ltd 07765904

Divrse Ltd 12171527

VSPG HOUSING 2 LTD 13133560 Abbotsound Limited (T/A Positive Lifestyles) 03148789

Proclass Classification No.

(to be completed by procurement)

250000 - Housing Management

Type of organisation

(to be supplied by Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Procurement)

Non-SME

Contract Value (£)

£ 12,250,000

Total contract value £ (including extensions)

£ 12,250,000 total project value

Contract Duration

10 months

Contract Start Date

19/10/2026

Contract End Date

01/09/2027

Optional Extension Period 1

N/A

Optional Extension Period 2

N/A

Contact Officer (Name & number)

Rachel Connelly - 0161 607 1600

Lead Service Group

Place

How the contract was procured?

(to be supplied by procurement)

Other

Framework Details (where applicable)

(procurement body, framework reference & title, start/ end date

N/A

Funding Source

Combination of Above (please detail below)

EC: Committed to the principles outlined in the Mayor’s Employment charter

Yes

EC: Accredited Living Wage Employer

No

EC: Committed to becoming Accredited Living wage Employer

No

The Reasons are: To maintain provision that fulfils the council’s statutory duties whilst establishing a cost effective, high quality framework of approved suppliers of temporary accommodation within the city.

Options considered and rejected were: ceasing all activity with existing providers. This has been rejected as it would leave the city council unable to fulfil it’s statutory duties to those households in need of temporary accommodation.

Assessment of Risk: SCC currently operates without a signed agreement or formal arrangement with any provider. This position results in expenditure being incurred outside of a competitively tendered process and presents a significant compliance and challenge risk under the Procurement Act 2023 and SCC’s internal governance framework.

The source of funding and financial advice obtained:

Gemma Singleton, Senior Accountant 0161 793 2578

Budgets and funding are confirmed for 2026/27 to fully support these contracts. This provides financial certainty for the immediate term and ensures that service delivery can continue without disruption.

The outcome of the procurement exercise may identify changes in costs or increases in contract values. Any such changes will need to be incorporated into the Medium Term Financial Plan (MTFP) for subsequent years beyond 2026/27.

The Council continues to incur a significant Housing Benefit Subsidy Loss (HBSL) relating to temporary accommodation placements, currently estimated at approximately £8m per annum. The providers included within the proposal have indicated a willingness to work with the Council to reduce HBSL exposure, but the financial risk remains material in the short- to medium-term.

It should be noted costs are demand-led and subject to volatility, particularly during periods of high market pressure or restricted availability. This creates inherent financial uncertainty that will require ongoing monitoring.

Also, while the competitive tender process offers an opportunity to improve value for money over time, it may also expose the Council to higher prices depending on market conditions.

Non-statutory provision (ABEN, RSI, CAS3) continues to be supported by GMCA / MHCLG funding, but future grant allocations beyond the current cycle are not yet confirmed. Any reduction in external funding would have direct financial implications for the Council.

Legal Advice obtained: Daniel Howard, Principal Lawyer, Legal Services - 0161 600 8733

When commissioning contracts for the procurement of goods, services, or the execution of works the Council must comply with the Procurement Act 2023 as well as its own Contractual Standing Orders (CSO’s), Financial Regulations and the duties of Best and Social value. In addition, the Act requires that contracting authorities treat candidates equally and in a non-discriminatory way and act in a transparent manner, failing which the award of a contract may be subject to legal challenge.

The report sets out that the Council proposes to undertake a procurement process via The Chest E-Tendering portal, FTS and contracts finder as an open tender which is compliant with the applicable requirements. Undertaking the tender exercise in the recommendation will give some comfort to the Council in ensuring that value for money is being obtained and periodically tested, with open competition maintained. The carrying out of this procurement exercise will ensure that the risk of challenge to the award of the contract to the selected contractor is minimal and that any challenge, should it materialise, is unlikely to be successful.

Procurement Advice obtained: Daniel Cunliffe – Category Manager – 0161 686 6249

The current expenditure on Statutory and Non-Statutory Temporary Accommodation in Salford is not governed by any formal contract or agreement. If Procurement Board approves the continuation of services and expenditure with current providers for the period detailed within this report, this will enable procurement activity to proceed under the provisions of the Procurement Act 2023, enabling the Council to test the market, secure best value, and ensure compliance with Salford City Council’s governance framework.

HR Advice obtained: N/A.

Climate Change Implications obtained: N/A/

Contact Details:

·      Rachel Connelly

·      0161 607 1600

Please delete from the bullets below any which are not relevant:

·      This matter is also subject to consider by the Lead Member for Housing and Anti-Poverty. The Lead Member has been consulted and is supportive of the proposed contract.

·      This matter is not subject to consideration by another Lead Member.

·      The appropriate Scrutiny Committee to call-in the decision is the Overview and Scrutiny Board.

Signed:    Paul Dennett       Dated:   12 October 2026.

                 City Mayor

FOR DEMOCRATIC SERVICES USE ONLY:

·      This decision was published on 15 October 2026.

·      This decision will come in force at 4.00 p.m. on 22 October 2026 unless it is called-in in accordance with the Decision Making Procedure Rules.