Decision details

Award of contract to Bloom Procurement Services Limited for provision of benefits processing service for a period of 12 months under The North East Procurement Organisation (NEPO).

Decision Maker: Assistant Director for Shared Services

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decision:

• The Assistant Director of Shared Services approves to award the contract for the provision of the Benefits Processing Service to Bloom Procurement Services Limited (Bloom) for a period of 12 months as permitted under the Council’s Contract Standing Order (CSO) 9.07.1(c).

• Bloom will subcontract to Meritec Ltd. for the provision of the Benefits Processing Service required by the Council.

• Contract Period is 1st April 2018 – 31st March 2019 (with option to extend for up to 6 months).

• Contract Value is £243,657.88 for 12 months or £365,486.82 if the option to extend for a further six months is exercised.


Reasons for the decision:

• Meritec Ltd. achieved the highest quality score during the tender evaluations and the Council has confidence that the services provided would fully comply with the requirements of the organisation in terms of value for money and quality

• Meritec Ltd is used by a number of other Local authorities to support their benefits service. The Council has taken verbal references from two local authorities who have both confirmed that the company delivers a good quality and accurate benefits processing service.

o The existing contract for this service expires on 31 March 2018. This contract will ensure continued support required for administration of various benefit processing services and reducing the backlog of work caused by the large number of staffing vacancies within the service. The cost of the service provision will be met within the existing benefits operational budget.


Alternative options considered:

• The Benefits Service has previously engaged additional temporary agency workers at peak periods to clear the backlog of work through the Council’s Temporary Agency Staff Provider, ‘Hays Specialist Recruitment Ltd’. This approach has had mixed results, leading to financial losses in Housing Benefit Subsidy and hence was not exercised.

• The option to undertake a full EU tender had been considered. However, it was deemed that the level of Council’s resources required to compete an EU tender process was not justified when suitable EU compliant Framework Agreements were available

Publication date: 27/03/2018

Date of decision: 21/03/2018

Accompanying Documents: