The Cabinet Member for Health, Social Care, and Wellbeing considered the report which sought approval for variation of contract and extension of contract to Barnet, Enfield, and Haringey Mental Health Trust.
The Cabinet Member RESOLVED
1. In accordance with Contract Standing Orders 16.02 and 10.02.1 (b), to agree to use the Rough Sleeping Drug and Alcohol (RSDA) grant (outlined at 1.1 of the report) to vary the existing contract with Barnet Enfield and Haringey Mental Health Trust for Integrated Adult Substance Misuse Treatment and Recovery Services lot one (specialist drug service) from 1 July 2022 until 31 March 2024.
2. In accordance with Contract Standing Orders 16.02 and 10.02.1 (b), to agree the contract extension of the Barnet Enfield and Haringey Mental Health Trust Integrated Adult Substance Misuse Treatment and Recovery Services lot one, for two years from 1 February 2023 until 31 January 2025. To note that the total value of the extension is £4,592,898.
Reasons for decision
Variation of contract with BEH – BEH is the named provider in the grant award, a change of provider is not within the grant agreement and would therefore require a re- submission of the bid to the Office of Health Improvement and Disparities (OHID).
A Change of provider would cause significant inconvenience and substantial duplication of costs to the local authority. In 2021 BEH set up what are the rough sleeping grant drug services. The start-up was highly technical and costly because of the policies, information sharing procedures, and relationships that needed to be in place for treatment organisations to be able to work with homeless providers, which includes hostels, day centres, health services.
If the Council chose to enter a procurement process for these services, this would stall service delivery. This would unavoidably reflect on the quality of services the Haringey residents currently receive. It could also lead to failure to meet the terms of the grant agreement.
Back dating – We are asking for the decision maker to allow for the variation of funding to BEH to be backdated to July 2022. The reason for this is that Haringey’s bid for 2022/23 included costs from 1st July 2022. This was accepted by OHID, but not in time for the request award of contracts by July 2022.
Variation – Variation of the main contract for Adult Substance Misuse treatment and recovery services, is permitted by Contract Standing Orders.
Extension of main contract - After an open tender process in October 2018 Cabinet awarded a contract to BEH for Integrated Adult Substance Misuse treatment and recovery services – lot one. The award was for a period of four years from 1 February 2019, with an option to extend for two further periods of 2 years with a total value of £18,371,592 (for 8 years). The 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 choose not to apply the grant to the BEH contract and go to market for the Rough Sleeping project; however, it is agreed that BEH is the only viable provider and as co-designers of the bid and existing provider, 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 grant to BEH has been agreed by OHID to be paid from 1st July, so it is included within the grant.
The Cabinet Member could decide that the main BEH 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.