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Cabinet Procurement and Insourcing Committee - Monday 1 September 2025 2.00 pm

September 1, 2025 View on council website

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Summary

The Cabinet Procurement and Insourcing Committee met on 1 September 2025, and made decisions on supported living services, and disabled facilities grants. The committee also discussed a council housing acquisition programme, but deferred a decision on it.

Supported Living Services and Residential Open Framework Contract

The committee approved the award of an open framework contract for Supported Living Services (SLS) and Residential Services to suppliers listed in the exempt appendix 1 of the Public reports pack. The contract covers both general supported living (Lot 1) and residential care (Lot 2) for adults, as well as block packages of care (Lot 3). The contract is for a period of up to eight years, commencing in October 2025, at a maximum cost of £805.7 million to Hackney.

The committee also agreed to extend the framework to North East London partners from year two onwards, potentially increasing the framework's value to £3.4 billion. The 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

The Public reports pack notes that this framework moves away from spot purchasing, to a formal procurement regime that meets the council's financial and contract standing orders. Every provider on the Framework meets a minimum set of quality standards, set out in the Conditions of Participation, that will be monitored annually to ensure these standards are maintained or improved.

The Public reports pack states the benefits of this approach are:

  • For the person who needs the service: Greater choice of service, placements in safe environments where quality checks have been completed, and 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, and fair access to business opportunities.
  • For London Borough of Hackney: A list of accredited providers, ensuring quality, safety and value for money, a greater choice of the different types of service to meet clients needs, knowing what is being purchased against the outcomes and needs, and ensuring that Hackney obtains best value and maintains a sustainable market.

The alternative options considered and rejected were: continuing spot purchasing, separate contracts, using an existing framework, and insourcing.

Adaptations, Repairs, Maintenance and Improvements (ARMI) Dynamic Purchasing System (DPS)

The committee approved a recommendation for Hackney Council to join the Adaptations, Repairs, Maintenance and Improvements (ARMI) Dynamic Purchasing System (DPS) for selecting contractors to deliver home adaptations funded by the Disabled Facilities Grant (DFG). The decision was made to support disabled residents needing home adaptations.

The ARMI DPS was originally created by Plymouth Council and is already used by several London boroughs, including Newham, Redbridge and Barking & Dagenham.

The Public reports pack notes that there is no charge to join the DPS, but a 1% fee (plus VAT) will be added to the cost of the adaptation, taken from the DFG allocation. Up to £7,621,000 of DFG grant will be allocated via the DPS over the proposed 3 year, 1 month and 11-day contract period, commencing on 1 October 2025.

The Public reports pack lists the advantages of joining the ARMI DPS as:

  • No annual fee
  • A 1% fee + VAT per adaptation cost which is paid via the DFG, providing a cost saving and value for money compared to the outsourced HIA fee of 15% + VAT
  • The DPS includes a Schedule of Rates (SOR)1, allowing for quicker quotes based on standardised prices, reducing the overall time to deliver adaptations
  • The DPS is a fully electronic online system, providing transparency and accountability when processing DFG applications
  • Safety checks are completed to ensure contractors are reputable, including through the government Trust Mark Scheme and via customer feedback
  • The DPS is supported by the Department of Health and Social Care in partnership with Foundations, the UK governing body for DFGs
  • KPIs are applied that allow the progression of the adaptation stage to be monitored
  • The DPS is an open market system which allows any contractor to apply at any time, including local businesses
  • The DPS provides transparency on contractor capacity, allowing the DFG Home Adaptations Service to select bids not only on cost but also on wait times
  • The DPS has a system built in to record resident and housing association contributions and where applicable variation costs, providing transparency and is auditable
  • The DPS approach ensures fair competition between contractors
  • The DFG Home Adaptations Service can have instant and direct communication with contractors via the DPS system, eliminating a middle person/service
  • The DFG Home Adaptations Service are able to upload documents e.g. OT specs, photos, drawings to allow contractors to bid for work and provide quotes
  • The DFG Home Adaptations Service will have greater control on reviewing quotes and additional works the contractors add (variations) with the ability to reject or accept
  • The DPS can still be used by residents to self-fund adaptations who have been assessed as ineligible for a grant
  • The DPS provides greater flexibility including the option to allow residents to source their own contractor pending contractor scrutiny
  • The DPS embeds compliance with relevant regulations e.g. Construction Design and Management (CDM) Regulations 2015 and the Consumer Rights Act 2015
  • The DPS has a 2-year backed warranty insurance in situations where contractors go bankrupt, allowing DPS to send another contractor out to repair an adaptation that is under warranty
  • INCIC offers support free of charge
  • The DPS embeds regulations including health and safety elements which eliminates the need for the Council to explore these independently, saving the council time and resources in the long term
  • The DPS remains open throughout its contract duration for the admission of new contractors who satisfy the selection criteria e.g. contractors signed up to the governments TrustMark scheme creating flexibility and choice
  • The DPS has built in KPIs to ensure a robust monitoring system
  • The DPS encourages contractors to quote based on quality products otherwise contractors can be easily removed and unlikely to get repeat work if workmanship is poor, which can be captured through the complaints KPI

The alternative options considered and rejected were: doing nothing, and making use of the council's existing stock adaptation framework.

Council Housing Acquisition Programme (CHAP)

The committee discussed the Council Housing Acquisition Programme (CHAP), but deferred making a decision on it.


  1. A Schedule of Rates (SOR) is a pricing document that lists the costs of different elements of a construction project. 

Attendees

Profile image for CouncillorRobert Chapman
Councillor Robert Chapman Cabinet Member for Finance, Insourcing and Customer Service • Labour • Homerton
Profile image for CouncillorChristopher Kennedy
Councillor Christopher Kennedy  Cabinet Member for Health, Adult Social Care, Voluntary Sector and Culture •  Labour •  Hackney Wick
Profile image for CouncillorCarole Williams
Councillor Carole Williams  Cabinet Member for Employment, Human Resources and Equalities •  Labour •  Hoxton West
Councillor Sarah Young  Cabinet Member for Climate Change, Environment and Transport •  Labour •  Woodberry Down

Topics

No topics have been identified for this meeting yet.

Meeting Documents

Agenda

Agenda frontsheet Monday 01-Sep-2025 14.00 Cabinet Procurement and Insourcing Committee.pdf

Reports Pack

Public reports pack Monday 01-Sep-2025 14.00 Cabinet Procurement and Insourcing Committee.pdf

Minutes

HPB Minutes 10.06.2025.pdf
Minutes 07072025 Cabinet Procurement and Insourcing Committee.pdf

Additional Documents

Actions tracker 01.09.2025 Published Draft 1.pdf
Decisions Monday 01-Sep-2025 14.00 Cabinet Procurement and Insourcing Committee.pdf
HIA DFG - CPIC Contract Award Report.pdf
AHI S567_ Supported Living Services SLS Residential Open Framework Contract Award Report CPIC - .pdf