The Cabinet of Merton Council met on Monday 16 October 2023 to discuss the procurement of Integrated Sexual Health services, the contract for the Revenues and Benefits System, and financial approvals.

Integrated Sexual Health (ISH) Services Procurement

A significant portion of the meeting was scheduled to be dedicated to the procurement of Integrated Sexual Health (ISH) services. The report pack indicated that the council has a statutory responsibility to commission and provide these services, as outlined in the Health and Social Care Act 2013 and the Merton Sexual Health Strategy 2020-2025. The proposed approach was to jointly procure these services with Wandsworth and Richmond councils, with Wandsworth acting as the lead commissioner. This collaborative approach was presented as the most advantageous option for Merton, aiming to better meet the sexual and reproductive health needs of the population.

The ISH service encompasses a range of provisions, including testing and treatment for sexually transmitted infections (STIs), contraception, HIV prevention, psychosexual counselling, and specialist clinics. The current contract, jointly commissioned with Wandsworth and Richmond, was due to end on 30 September 2024. The report pack detailed performance of the current contract, noting that activity levels had not yet returned to pre-pandemic levels, with a significant proportion of Merton residents accessing services outside the borough.

The proposed new contract would be for an initial three-year term, with the option to extend for a further two periods of two years, potentially leading to a total contract length of seven years. The procurement timeline aimed to award the contract by March 2024, with a six-month mobilisation period for a new contract to commence on 1 October 2024. The financial envelope for the contract was to be finalised upon successful provider selection, with an indicative budget set to encourage market participation. Authority for the award of the contract and any subsequent extensions was to be delegated to the Executive Director of Adult Social Care, Integrated Care and Public Health.

The report pack also outlined four alternative options considered, including decommissioning the service, rolling over the existing contract, undertaking a separate procurement for Merton only, and the preferred option of joint procurement with Wandsworth and Richmond. The joint procurement was favoured for its economies of scale and the existing good working relationships between the boroughs.

Revenues and Benefits System Contract

The Cabinet was also scheduled to consider the contract for the Revenues and Benefits System. The report indicated a need to remain with the current software supplier, Civica UK Ltd, rather than tendering for a new contractor. The existing contract provides an IT solution for billing and collection of council tax and business rates, as well as the payment of housing benefits and other discretionary payments. It also includes a customer portal for residents and businesses.

A key driver for remaining with Civica was the urgent need to move to a cloud-based system due to the high risk of cyber-attacks. The report highlighted the potential consequences of a cyber-attack, including the inability to administer and collect revenues, pay benefits to vulnerable residents, and the loss of vital data. The implementation of a new system from a different supplier was also noted as a challenging and time-consuming process, estimated to take between nine and twelve months.

The recommendation was to award a seven-year contract with an option to extend for a further two years to facilitate the move to a cloud-based solution. Authority to take up these optional extensions was to be delegated to the Chief Officer and Executive Director of Finance and Digital. The report also detailed the statutory duties the council must fulfil regarding revenue collection and benefit payments, including collecting approximately £150 million in council tax and £89 million in business rates annually.

Financial Approvals - October

The meeting agenda included a section for financial approvals, which aimed to address budget adjustments to the Capital Programme. These adjustments were being presented separately from the usual quarterly financial monitoring reports to avoid delays in necessary approvals. The report pack provided detailed tables outlining proposed adjustments across various council departments, including Housing and Sustainable Development, Environment, Civic Pride and Climate, Finance and Digital, and Children, Lifelong Learning and Families. These adjustments involved re-profiling budgets to reflect expected spending patterns, relinquishing budgets for projects that had been delayed or were no longer viable, and reallocating funds for new initiatives.

For example, within Housing and Sustainable Development, adjustments were proposed for projects such as the Mitcham Area Regeneration - Elmwood Centre Hub and Morden Area Regeneration - Morden Town Centre Regen Match Funding. In the Environment, Civic Pride and Climate department, adjustments were noted for schemes like On Street Parking - P&D - ANPR Cams Air Qual & Traf Sens and Waste SLWP - Replacement of Fleet Vehicles. The Finance and Digital section detailed numerous adjustments related to the Customer Contact Programme and various business systems. The Children, Lifelong Learning and Families section focused on adjustments to the Capital Maintenance budgets for several schools.

The report pack also indicated that the Cabinet would be asked to approve these adjustments, with a note that some adjustments would be for Cabinet to note rather than approve. The next financial monitoring report, covering the second quarter, was scheduled to be presented to Cabinet in November 2023.