Agenda item

Report of the Director of Adult Social Services

The Cabinet considered a report of the Director of Adult Social Services (DASS) which advised that the Domestic Property Disability Adaptations (DPDA) Framework, which provided essential works such as Level Access Showers and Shower over Baths through the Disabled Facilities Grant (DFG), had exceeded its approved contract value and cannot be extended within the limits set by the Council’s Contract Procedure Rules. It was therefore proposed to end the framework following its current one-year extension, seek an exemption to regularise spend via a direct award, and secure continuity of service beyond November 2025.

The Council had a multi contractor Framework Agreement in place for Domestic Property Disability Adaptations (DPDA), which commenced on 1 December 2022 for an initial term of 2 years with the option to extend twice, each for an additional term of no more than 1 year. Under the Framework Agreement, the Council places orders for the provision of Level Access Showers and Shower over Baths, as and when required. The Framework Agreements were put in place to enable the Council to meet its duty to award a Disabled Facility Grant (DFG) to those who are eligible and to ensure the works funded by a DFG are completed to a high standard and in a timely manner.

The initial 2-year term of the Framework Agreement, which the Council has entered with each of the 4 appointed contractors, expired on 30^th November 2024. An extension was granted for 1 year and is due to expire on 30^th November 2025, as outline in Appendix A. The Framework Agreement provides that 28 days’ written notice is required to be served on the Contractor to extend the initial term.

The cost of the extended term is not within the capped total life of contract costs set at £2,260,000, as approved in the original Cabinet report for the procurement of DPDA works requirements and as provided for in the advertised opportunity. The spend to date is £3,089,518.45, which exceeds both the original approval and the maximum permitted modification under the Council’s Contract Procedure Rules (CPRs).

Under the CPRs, a modification of up to 15% (in this case, £339,000) would have been permissible, resulting in a total of £2,599,000. As the actual spend has already exceeded this figure, an exemption to the CPRs is required. This report therefore seeks approval to end the Framework Agreements and to formally request an exemption for a direct award to regularise the position and enable continued delivery of this essential service.

The DFG budget for this year is £3,044,703.82. The spend to date from the DFG budget is £1,034,003.19 which leaves an outstanding budget of £2,010,700.63. Projected spend to the end of the framework will also need to be calculated to ensure it remains within the wider thresholds.

The report also sought approval to increase the framework prices by 5% from April 2025 to November 2025. And to ensure the uplift it in the direct award for December 2025 to November 2026. 

Options/Alternatives considered:

Option 1: Do nothing and allow the Framework Agreements to come to an end on 30^th November 2025. This option was not recommended due to the legal, operational, and reputational risks it presented to the Council.

Option 2: To extend each Framework Agreement for 12 months, subject to contractor agreement, and seek an exemption to the CPRs. This option is not recommended due to the legal, operational, and reputational risks it presents to the Council.

Option 3: To extend each Framework Agreement for 7 months, seek an exemption to the CPRs, and approve a 5% uplift from April 2025. This option is not recommended due to the legal, operational, and reputational risks it presents to the Council.
Option 4: To end the current Framework Agreements on 30^th November 2025 and request an exemption from the CPRs in order to approve a direct award to the current four providers under a one-year Framework Agreement, running from December 2025 to November 2026.  In addition, to approve a 5% uplift to the current contract rates from April 2025 to November 2025 and for the extended period until November 2026. Under this option, the current agreements would end on 30^th November 2025. We would seek an exemption to the CPRs, as the spend to date plus the projected spend to 30^th November 2025 will exceed the permitted modification threshold. The proposal is to make a direct award to the current four framework providers on a one-year term (to 30th November 2026) to ensure continuity of service, in line with the original arrangement. This approach would provide sufficient time to undertake a new procurement. In addition, a 5% uplift to contract prices would be applied from April 2025, reflecting rising costs. This would support providers to remain financially sustainable, encourage their continued engagement, and help secure their participation in both the current and future procurement exercises.

Option 4 was the preferred Option.

In considering the report Cabinet noted that the Chair of Adults and Social Care Scrutiny Board had exempted this item from call-in, by virtue of Rule 14 of the Council’s Constitution, due to the need to make a decision regarding the future operation of the service, prior to 30^th November 2025.

Resolved:

1.     That Option 4, detailed in the submitted report be approved.

2.     The Cabinet notes that under Option 4 allows for the end of the current Framework Agreements on 30^th November 2025 and authorises an exemption from the CPRs in order to approve a direct award to the current four providers under a one-year Framework Agreement, running from 1^st December 2025 to 30^th November 2026.

3.     The Cabinet notes that in addition, to approve a 5% uplift to the current contract rates backdated from 1^st April 2025 to November 2025 and for the extended 12 months contract value.

4.     The Cabinet notes that under Option 4, the current agreements will end on 30^th November 2025, therefore an exemption to the CPRs, as the spend to date plus the projected spend to 30^th November 2025, is approved.

5.     The Cabinet notes that proposal is to make a direct award to the current four framework providers on a one-year term (to 30th November 2026) to ensure continuity of service, is in line with the original arrangement - this approach would provide sufficient time to undertake a new procurement exercise; in addition, a 5% uplift to contract prices would be applied from April 2025, reflecting rising costs. This will support providers to remain financially sustainable, to encourage their continued engagement, and help secure their participation in both the current and future procurement exercises.

6.     That the Cabinet notes the actions of the Chair of the Adults and Social Care Scrutiny Board in exempting this report from the Call-in process, under Rule 14 of the Council’s Constitution.