Decision Maker: Cabinet

Outcome: Decision approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: November 5, 2024

Purpose: This report asks Cabinet to approve a contract award for the supply of temporary workers.  Although the Council seeks to minimise the use of agency staff, there will always be some need for them. This recommendation is made to Cabinet following an extensive exercise to evaluate the different options available to the Council. The contract is proposed to be awarded to Adecco via a procurement arrangement referred to as the Eastern Shires Purchasing Organisation (ESPO) Managed Services for Temporary Agency Resources 4 (MSTAR4) London Collaboration. 

Content: Decision   For the reasons set out in the report and its appendices Cabinet RESOLVED to Agree to:   i)  Award a contract to Adecco UK Limited, for the supply of temporary workers from 14th March 2025 for a period of two years, with the option to extend for a further two years and two years after, subject to Adecco achieving excellent performance in line with agreed outcome targets.   Alternatives Considered   a)  Officers have undertaken an extensive exercise to evaluate the different options available to the Council for sourcing temporary workers, as set out in section 4 above. The following options were considered and discounted: · Running a Further Competition under either YPO (Temporary and Permanent Recruitment) or ESPO (MSTAR4) frameworks. This was discounted as it is more resource intensive and rates may not be as favourable, as the level of spend would not achieve the cost avoidance identified by the London Collaborative procurement. · Open Tender This was discounted, as the approach would be highly resource intensive, and rates may not be as favourable, as the level of spend would not achieve the cost avoidance identified by the London Collaborative procurement. It is highly likely that the same suppliers would tender, as they have been procured already under the available frameworks, alongside the suppliers that were unsuccessful on gaining entry to the MSTAR4 or YPO frameworks. For example, out of 40 supplier bids received to join MSTAR4, 16 were awarded a place. · Entering into a joint venture with Kent Commercial Services (Kent County Council) This was discounted, because it would require setting up a company and team to deliver and manage the recruitment service within Newham, in partnership with Kent Commercial Services. Robust knowledge, expertise and skills would be required and would take time to establish. All accountability would lie with the council, rather than service providers. Whilst this option has been successfully implemented outside of London, it has not been used inside London where competition between boroughs for resource is higher.