Decision Maker: Cabinet Procurement and Insourcing Committee

Outcome: Abandoned

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: September 1, 2025

Purpose:

Content: RESOLVED:   1.  To approve the award of an Open Framework contract for the delivery of the Supported Living and Residential Services (Lot 1 & 2) and block packages of care (Lot 3) to the successful suppliers listed in Exempt Appendix 1, and any subsequent suppliers that successfully apply to join the framework when it is reopened. The contract period will be up to 8 years (5 +1+1+1) commencing in October 2025 at a maximum cost to Hackney of £805.7m.  2.  To approve the naming of all North East London Partners from year 2 onwards (with a maximum framework value sufficient to include all the potential activity), for Lots 1 and 2.   North East London Local Authorities who are able to access this framework from Year 2 onwards are: London Borough of Barking & Dagenham City of London Corporation London Borough of Newham London Borough of Redbridge London Borough of Tower Hamlets London Borough of Waltham Forest London Borough of Havering     Reasons For Decision   The original Business Case set out 5 options. The approved option was option 3, to Procure an open framework, supported by the E-Brokerage system for call offs.   The benefits of this option are:   For the person who needs the service ·  The individual client gets a greater choice of service or the service can be matched to their needs e.g. accessible bathrooms or close to significant cultural communities or places to worship. ·  Placed in a safe environment where quality checks have been completed, meaning a safe placement ·  A quicker response to need   For Providers ·  Opportunity to see all potential business via the e-brokerage system ·  New business to those not already engaged ·  Fair access to business opportunities    For London Borough of Hackney ·  List of accredited providers, ensuring quality, safety and value for money. ·  A greater choice of the different types of service to meet clients needs ·  Know what is being purchased against the outcomes and needs ·  Ensures that LBH obtains best value and maintains a sustainable market.   Alternative Options Considered and Rejected   The following 5 options were considered and rejected for the future of the Supported Living & Residential provision in the borough:   The Business Case outlined five options for procuring Supported Living and Residential Services, moving away from the current spot purchasing arrangements:   Option 1: Continue Spot Purchasing. This option is disadvantageous due to a lack of quality assurance, difficulty in negotiating fair rates, inefficient use of staff time, and non-compliance with Council Financial and Procurement Standing Orders.   Option 2: Separate Contracts. While regularising existing arrangements, this option is time-consuming, risky for block contracts (due to potential voids), and would not provide the full benefits of an open framework.   Option 3: Procure an Open Framework (Preferred Option). This involves admitting vetted providers to a framework with overarching terms and conditions, including standardized fee rates. Individual placements will be made using an e-Brokerage system, offering greater choice, value for money, and improved outcomes for service users.   Option 4: Use an Existing Framework. This option was rejected as previous attempts to use existing frameworks (e.g., Waltham Forest) were unsuccessful due to low provider numbers, associated costs for Hackney, and limited control over the process.   Option 5: Insourcing. While the Council does not currently own or operate these services, this option suggests that once the framework is established, specific services (particularly Lot 3 block packages) could be identified for potential in-house delivery, supporting future capital build programs.