The Projects and Procurement Sub-Committee met on Tuesday 19 May 2026 to discuss several key areas, including the extension of a highways maintenance contract, strategies for street homelessness outreach and support services, and the procurement of inpatient detoxification beds for substance misuse programmes across London. The committee also reviewed updates on the Commercial, Change & Portfolio Delivery Risk Register.

Extension of Highways Maintenance and Repairs Contract

The committee was scheduled to consider the extension of the Highway Construction & Maintenance Term Contract with FM Conway. This contract, initially awarded in June 2022 for five years, includes an option for a further five-year extension. The report highlighted FM Conway's consistent high performance in delivering highway maintenance, resurfacing, road marking, drainage, and street lighting services. The report noted that FM Conway has met or exceeded Key Performance Indicators (KPIs) related to timely delivery, adherence to specifications, and responsiveness. The contractor has also demonstrated effective cost management and a collaborative approach, adapting to the City's evolving needs without formal compensation claims.

The report recommended activating the five-year extension to mitigate potential cost increases associated with a full retender, especially given current volatility in the wider highway construction industry, including rising material prices and labour shortages. The recommendation was to extend the contract with FM Conway for a further five years from June 2027, ensuring continuity of service and effective forward planning. The Comptroller and City Solicitor was to be instructed to prepare a Deed of Variation to record the extension and any other agreed changes.

Stage 1 - Street Homelessness Outreach and Support Service

A joint report from the Chamberlain and the Executive Director of the Department of Community and Children's Services outlined the proposed procurement strategy for a new multi-functional Street Homelessness Outreach & Support Service. This service aims to consolidate three currently separate contracts into a single contract with one provider, designed to be flexible and agile to meet the challenges of street homelessness over the next five years. The proposed contract value was estimated at up to £8.3 million, dependent on funding opportunities, with a core term of three years and an optional extension of two further years.

The recommendation was to approve the procurement strategy under the Open Procedure, as outlined by the Procurement Act 2023. The evaluation criteria were set at a ratio of 55% Quality, 15% Responsible Procurement, and 30% Price. The report detailed a significant rise in street homelessness in the City of London over the past five years, with total recorded instances increasing from 350 in 2020/21 to 878 in 2024/25. The proposed service aims to address this by offering flexibility to adapt to changing needs, including potential additions such as specific premises, weather-related responses, support for specific demographics, health improvement interventions, and enhanced day services.

Stage 1 - Pan London Substance Misuse Programme - Inpatient Detoxification and Stabilisation Beds

The Executive Director of Community and Children's Services presented a report seeking approval to undertake an Invitation to Tender (ITT) exercise for drug and alcohol inpatient detoxification provision across London. This service is part of the Pan-London Substance Use Programme, hosted by the City of London Corporation on behalf of London local authority partners. The estimated total value of the new contract is £7.9 million over three years, with a commencement date planned for January 2027.

The current contract, delivered by Guy's and St Thomas' NHS Foundation Trust (GSTT), was due to end on 31 March 2026. A collective decision by London partners, including Directors of Public Health, the London Office for Health Improvement and Disparities (OHID), and London boroughs, was to procure a new model of provision. The report recommended approving the use of Regulation 11 (Competitive Process) of the Health Care Services (Provider Selection Regime) Regulations 2023 (the PSR) for the procurement. The evaluation criteria were proposed as 55% Technical Response (Quality), 15% Responsible Procurement, and 30% Price, with the higher weighting for technical response reflecting the need for strong clinical quality for clients with complex needs.

Commercial, Change & Portfolio Delivery Risk Register Update

A report from the Chamberlain provided an update on risk management activities within the Commercial, Change and Portfolio Delivery (CCPD) Division. The division was managing one AMBER Corporate Risk, CR33: Project portfolio strategic impact and/or financial value. The report detailed current mitigations, which included embedding the P3 framework through the Project Management Academy, strengthening financial oversight via the Chamberlain's Assurance Board, monitoring funding assumptions, and improving governance and accountability through regular reporting. The report also noted a departmental risk, CHB 005: Resistance to Transformation and Change (Change Fatigue), and CHB 003: Inconsistent application of the internal control environment. Updates on actions related to these risks were provided, including the development of a new Project Management Academy, ongoing cashflow and forecast monitoring, and the finalisation of a new Procurement Policy.

Forward Plan of the Sub-Committee

The committee was scheduled to receive information on the Forward Plan of the Sub-Committee for 2026/27, as reported by the Chamberlain. This plan outlines upcoming reports and their authors for future meetings.

Other Scheduled Items

The agenda also included items for decision regarding the election of a Deputy Chair and the agreement of public minutes from the previous meeting held on 25th March 2026. Additionally, there was a motion to exclude the public for specific items due to the likely disclosure of exempt information, followed by the agreement of non-public minutes. The committee was also scheduled to receive updates on the Contract Management Service Delivery Model, the Portfolio Dashboard, and to consider any urgent business.