Agenda item

The Cabinet Member for Health, Social Care, and Wellbeing considered the report which sought approval for the receipt of supplemental grant funding for Substance Misuse Treatment and Recovery and sought variation and extension of the contract to Humankind as set out in the report.

It was noted that performance was built into the contract management processes and that specific steps could be taken in the case of any issues. It was also noted that financial reports were requested from providers at the end of the financial year.

Following consideration of the exempt information,

The Cabinet Member RESOLVED

1.    To approve the receipt of the Office for Improvement and Disparities (OHID) grant ‘Supplemental funding for substance misuse treatment and recovery’ for the year 2023/24 and 2024/25 in accordance with Contract Standing Orders (CSO) 16.02 and 17.01 The value for the indicative grant will be £1,303,160 for 2023/24 and £2,515,389 in 2024/25.

2.    In accordance with Contract Standing Orders 16.02 and 10.02 .1 (b), to agree the use some of the grant monies (as outlined in this report) to vary the existing contract with Humankind Charity for Integrated adult substance Misuse Treatment and Recovery services lot two from 1st April 2022 until 31st January 2025 a period of or 31 months) at a total value of £918,332.

3.    To include the Supplemental grant, financial year 2022/23 £283,290 and subject to OHID agreement 2023/24 £346,387 and 2024/25 £288,655.

4.    In accordance with CSO 16.02 and 10.02.1 (b), to agree contract extension of the Humankind contract for Integrated Adult Substance Misuse Treatment and Recovery services: lot two, for two years from 1st February 2023 until 31st January 2025, such extension to include the variation referred to in para 2.2 above. Total value of extension £1,779,814.56.

5.    To delegate authority to the Director of Public Health to approve a further extension in the total value of £57,731 for a further period of 2 months from 1 February 2025 to 31 March 2025.

Reasons for decision

Accepting the grant - Reducing the impact of drugs and alcohol misuse on adults, families and the community is a cross cutting Council priority. The Council therefore welcomes a significant uplift in funding for substance misuse treatment. The public health team along with providers and service users have designed the services that this grant will be used for.

Preferred providers - Humankind is an existing provider of Haringey substance misuse services, having successfully bid in an open tender process for the Alcohol service, Young People’s service, Recovery services and as a sub-contractor of the criminal justice elements of the Drug service. It has partnered with the Council in several successful bids. It is strongly invested in building a better future for Haringey residents with substance misuse issues. Humankind is one of 4 providers receiving funding from this grant, others include two resident peer led organisation and our NHS substance misuse provider.

Continuation elements within the Supplementary Contracts – services within the 2022/23 Supplementary grant are not new, they were contracted within the one-year Universal grant 2021/22 and delivered by Humankind. Before awarding the Universal contract to Humankind, steps were taken to ensure that Humankind would deliver the universal services well.  Humankind was a partner, with other agencies, commissioners, and services users in the successful bid for the universal grant.  Humankind is still the right organisation to deliver these services well, for it has delivered the Universal contract in line with key performance indicators, overseen by Public Health commissioner’s reporting into a steering group.

Projects within the new Supplementary grant are continuations of the Universal grant, there must not be a break in service. Humankind has already recruited into posts, established delivery, and successfully met outcomes. For these services Humankind is the only viable provider.

New elements – Humankind’s Haringey workforce are our major asset, for it is their relationship with clients that makes Haringey’s treatment system successful. In 2021, with agreement from the Council, Humankind conducted a pay review. All staff are paid London Living Wage, however for many years they have not had pay increases in line with inflation. Providers have needed to keep costs low to be competitive in tenders. Also, we want to keep our staff in Haringey, so agreed to benchmark our salaries with other competitor services in other local authorities. A pay award has been agreed between the Council and Humankind.

Back dating – We are asking for the decision maker to agree that the funding to Humankind Charity in respect of the contract variation to be backdated to April 2022. The reason for this is that Haringey’s bid for 2022/23 Supplemental grant included pay increases to staff from April 2022. This was accepted by OHID, but not in time for the funding to be applied from April 2022.

Variation – Variation of the main contract for Adult Substance Misuse treatment and recovery services, is permitted by Contract Standing Orders.

Extension of main contact - After an open tender process in October 2018 Cabinet awarded a contract to CDP Blenheim (who became Humankind Charity), for Integrated Adult Substance Misuse treatment and recovery services. The award was for a period of four years with an option to extend for 2 years and a further period of 2 years total value £7,170,567.54 (for 8 years). This initial term of the contract expires on 31st January 2023. The contract is performing satisfactorily, and it would not be in the Council or residents’ interest to go out to the market at this stage for a new provider.

Alternative options considered

The Cabinet member could refuse to receive the grant. However, as there was a clear need for this work and strong support to tackle the impact of substance misuse on the community, this option has not been considered.

The Cabinet member could choose not to award the grant to Humankind and go to market for the Supplemental projects; however, it is agreed that Humankind is the only viable provider and as co-designers of the bid and existing providers, best placed to ensure services are delivered well.

The Cabinet member could choose not to vary the existing contract, however setting up a separate contract would create duplication and avoidable administration costs.

The Cabinet member could decide not to allow backdating of the contract, however the pay award has been agreed by OHID to be paid from 1st April, so it is included within the grant.

The Cabinet member could decide that the main Humankind contract should not be extended, as the existing service is delivering well, going through the disruption of a tender process is not in the interests of residents.