Content

Salford City Council – Record of
Decision
 
I Councillor Hinds, Lead Member
for Finance and Support Services and chairman of the Procurement
Board, in exercise of the powers contained within the
Council Constitution
do hereby approve:
 
·     
an exception to Contractual Standing Orders as
permitted within the City Council Constitution for the reason(s)
highlighted in the table below and the award of the Contract for
(The Literacy Hub),as
detailed in the table below:
 

Detail required

Answers

Title/Description of Contracted
Service/Supply/Project

The Literacy Hub

Name of Successful
Contractor

National Literacy Trust

Supplier Registration Number

(to be supplied by Corporate
Procurement)

Charity No: 1116260 Company No: 5836486

Type of organisation

(to be supplied by Corporate
Procurement)

Registered Charity

Status of Organisation

(to be supplied by Corporate
Procurement)

SME

Contract Value (£)

           
£245,000 per annum

Contract Duration

12 months

Contract Start Date

01/07/2024

Contract End Date

30/06/2025

Optional Extension Period 1

12 months

Optional Extension Period 2

12 months

Who will approve each Extension
Period?

Procurement Board (extension >
£150k)

Contact Officer (Name &
number)

Cathy Starbuck

Lead Service Group

People Services

Reason for CSO Exception: The goods / services /
works are only obtainable from one provider and there is no other
provider available to allow genuine competition

Tick if it applies

Reason for CSO Exception: The execution of works or
the supply of goods or services is controlled by a statutory
body

Tick if it applies

Reason for CSO Exception: Delivers Best Value to the
Council

Tick if it applies

Reason for CSO Exception: Special education, health
or social care contracts, if it is considered in the
Council’s best interests and to meet the Council’s
obligations under relevant legislation

Tick if it applies

Reason for CSO Exception: The execution of works or
the supply of goods and services is required so urgently as not to
permit compliance with the requirements of competition

Tick if it applies

Reason for CSO Exception: Security works where the
publication of documents or details in the tendering process could
prejudice the security of SCC and Salford residents

Tick if it applies

Reason for CSO Exception: Procurements made through,
or on behalf of, any consortium, local authority, statutory or
similar body, provided that tenders or quotations are invited and
contracts placed in accordance with national or EU
legislation.

Tick if it applies

Funding Source

Choose an item.

Ethical Contractor (EC): Mayor’s Employment
Charter

 

EC: Committed to sign up to the Charter

EC: Accredited Living Wage Employer

 
 
The reasons are: The goods/
services/ works are only obtainable from one provider and there is
no other provider available to allow genuine competition. The
development of a Literacy Hub through National Literacy Trust would
enable Salford to take forward the national learning from Literacy
Hubs that are already established to engage our communities with
literacy activities, helping to create readers and writers in our
most disadvantaged communities. In terms of match funding, National
Literacy Trust would aim to bring in 5 times the amount invested in
the Hub in total across books, programmes, materials, discounts and
donated services.
 
Options considered and rejected were: To go out to open tender. This was rejected due to
the time restraints and time needed for the market to develop for
sufficient competition.
 
Assessment of risk:
AMBER – The risks of not completing this element of the
overall approach to literacy are significant as improving literacy
is a key recommendation from the Children’s Scrutiny report.
This work is an essential part of embedding the Literacy Strategy
and would be a key vehicle to ensure that literacy is given a high
profile in Salford.
 
The source of funding is: theBudget that will meet the cost of the
scheme: E2702.
 
Legal advice obtained:
When commissioning contracts for the procurement of goods, services
or the execution of works, the Council must comply with the Public
Contracts Regulations 2015 (PCR) and its own Contractual Standing
Orders (CSO’s), failing which a contract may be subject to
legal challenge from an aggrieved provider.
 
The
proposed value of this contract (total of £735,000 across the
three years) exceeds the PCR threshold for procurement of services
(currently £214,904 (inc. VAT)). Therefore the Council must
follow a competitive advertisement and tender process (or identify
a PCR compliant framework) unless it can identify an applicable
exemption under regulation 32. This enables a direct award of this
contract to a supplier without prior publication in certain
circumstances:
 
(2)
(b)where the works, supplies or services can be supplied only by a
particular economic operator for any of the following
reasons:—
(i)the aim of the procurement is the
creation or acquisition of a unique work of art or artistic
performance,

(ii)competition is absent for technical
reasons,
(iii)the
protection of exclusive rights, including intellectual property
rights, but only, in the case of paragraphs (ii) and (iii), where
no reasonable alternative or substitute exists and the absence of
competition is not the result of an artificial narrowing down of
the parameters of the procurement;
 
This report suggests that
Regulation 32(2)(ii) is applicable if National Literacy Trust is in
a unique position as the only provider able to support Salford with
the creation, delivery and management of the literacy
hub.
 
Separately any direct award
must also comply with the Council’s CSOs, which allows for a
waiver from the Council’s contracting rules procurement rules
in certain circumstances:
 

• Where goods/ services/ works are only
obtainable from one provider and there is no other to allow genuine
competition
• The execution of works or the supply of goods or services
are controlled by a statutory body

• Delivers Best Value to The Council
• Special education, health or social care contracts, if,
it is considered in the Council’s interests and to meet its
obligations under relevant legislation.
 
Shared Legal Services (SLS) would be happy to work with Council
officers to support with drafting and developing documentation to
support the activities of the Literacy Hub. SLS can also advise on
various legal aspects relating to the operation of the hub (for
example who employees the Hub Manager, data protection and
information sharing, any agreements required in relation to venue
hire etc).
 
The
Council should enter into some form of services agreement with NLT.
Ideally this should always be under the Council’s own
corporate terms, but SLS can review any terms already drafted by
NLT in relation to its Literacy Hub ‘Gold’ offer. Any
arrangement with NLT should include contract performance and
monitoring provisions (such as reporting requirements and key
performance indicators to measure against), and remediation and
recovery mechanisms in the event of non-delivery or
underperformance.
 
Financial advice obtained: The City Council has
agreed an investment of £245k per year for three years to
support the development of a literacy hub. This budget amount has
been allocated to the children’s services budget.
 
Procurement advice obtained: The legal implications are set out
in the above report. There is always a risk of challenge where a
competitive process has not been undertaken. The commissioning team
have determined that competition is absent due to technical reasons
so the risk of challenge is deemed to be low. Any exceptions to
CSOs above £150,000 can be approved by Procurement
Board.
 
The National Literacy Trust is
an accredited foundation living wage employer. The commissioning
manager and procurement have engaged closely with National Literacy
Trust to discuss how they will deliver Salford’s social value
priorities through the core services being commissioned and added
value. The National Literacy Trust have committed to delivering
Social value throughout the contract period, this includes
supporting skills and employment opportunities recruiting locally
to the hub, running education sessions monthly into schools and
colleges, improving staff wellbeing and mental health through a
number of initiatives and volunteering within the
community.
 
Social value commitments will
be incorporated into the contract with SLS and monitored through
the SVP portal.
 
HR advice obtained: N/A
 
Climate change implications obtained: N/A
 
The following documents have been used to assist the decision
process:
·     
Supporting School Improvement Report of the Lead
Member for Children’s and Young People’s Services to
Cabinet Briefing on 27 February 2024.
 
Contact Officer: Cathy Starbuck, Director Education and
Inclusion  
Telephone number: 07793036147
 
Please delete from the bullets
below any which are not relevant:

The Lead Member has
been consulted and is supportive of the proposed
contract.

 
 
 
 
 
 
 
 
 
 
 

Signed:    Cllr J
Youd          Dated:
   12 June
2024.
           
   Lead Member
 

FOR DEMOCRATIC SERVICES USE
ONLY
 
*          
This decision was published on 12 June 2024
*          
This decision will come in force at 4.00 p.m. on 19 June
2024 unless it is called-in in
accordance with the Decision Making
Process Rules.