Issue - meetings

[Report of the Director of Adults and Health. To be introduced by the Cabinet Member for Adults and Health]

This report seeks approval for the award of a block contract to One Housing Group (OHG) for a total of 142 extra care units in three Haringey-based schemes at Protheroe House, Lorenco House and Roden Court.

 The Cabinet Member for Adults and Health introduced this report which sought approval for the award of a block contract to One Housing Group (OHG) for a total of 142 extra care units in three Haringey-based schemes at Protheroe House, Lorenco House and Roden Court.

The Cabinet Member supported the proposal to establish a block contract arrangement with One Housing Group which will secure capacity for Extra Care provision for older and disabled residents at competitive market rates whilst fulfilling our commitment to the payment of London Living Wage and meeting current inflationary pressures. The proposal would enable specialist provision to be retained locally and be available to Haringey residents enabling them to remain as independent as possible within a structured care environment. The proposal would promote better quality of service provision as it would facilitate the retention of staff within OHG and support their ongoing learning and development to enable them to deal with more complex cases and escalation of need.

Further to considering exempt information at item 39,

RESOLVED

1. To approve, pursuant to the Council’s Contract Standing Order (CSO) 9.07.1(d), the award of a block contract to One Housing Group for the block purchasing of a total of 142 extra care units in three schemes (Protheroe House, Lorenco House and Roden Court: 50, 52 and 40 units respectively) for an initial period of 3 years

2. To approve the costs for the block contract arrangement for the initial period of 3 years of £12m, or £4m p.a.

3. To approve the option to extend the contract for a further 2 years at an additional cost of £9m or £4.5m p.a. for each yearof the extended contract

4. To note total costs of £21m over the life of the contract which would run from 1^st April 2020 to 31^st March 2025 if the option to extend were taken up

Reasons for decision

The Council is committed to paying rates for care compatible with the payment to care workers of the London Living Wage. The Council currently commissions on a spot purchasing basis a total of 142 units in three extra care schemes (Protheroe House, Lorenco House and Roden Court) with OHG. Ten of these units are currently provided as shorter-term intermediate care beds but given demand and the profile of service users over time, all 142 units will be offered as long-term care under the proposed block contract arrangements. By converting the above current arrangements to a long-term block contract, the Council will achieve better value for money for local specialist provision whilst fulfilling the current LLW requirement.

Furthermore, the Council has negotiated competitive rates with this supplier as there is a limited market locally. The Council was not in a position to establish a new block contract for the Extra Care provision via an open tender process as there are no provisions of a similar size in Haringey or sub-regionally capable of meeting the requirement to support all current service users  ...  view the full minutes text for item 207