Agenda item

Report of the Corporate Director of Adults, Housing and Health. To be presented by the Cabinet Member for Health, Social Care and Wellbeing

DECLARATIONS OF INTEREST MADE FOR THIS ITEM:

None

RESOLVED:

That Cabinet:

1.    In accordance with Contract Standing Orders 2.01(a) (approval to commence a procurement exercise) and 2.01(d), approved the direct award of two contracts for a total of 39 block-purchased residential and nursing care beds:

a.    To Ourris Properties Limited for 28 beds at Autumn Gardens; and

b.    To Ourris Residential Homes Limited for 11 beds at Anastasia Lodge.

2.    Approved the award of contracts for a period of eight years commencing on 22 November 2026, with a break clause exercisable after four years, at an estimated maximum aggregate contract value of £19.67 million over the full contract term.

3.    Noted that the proposed award was supported by the evidence contained within the Needs and Gaps Analysis and was compliant with the Council’s obligations under the Procurement Act 2023 in relation to user choice services.

4.    Delegated authority to the Corporate Director of Adults, Housing and Health, in consultation with the Cabinet Member for Health, Social Care and Wellbeing, the Director of Finance, and the Head of Legal and Governance, to finalise and enter into all contractual arrangements necessary to implement the decision.

Reasons for the Decision

Across the two care homes, Ourris provided a service that was difficult to replace. It represented Haringey’s only block-purchased residential and nursing care arrangement and offered culturally responsive support for Greek, Cypriot and Turkish communities. Residents were supported in environments that reflected their language, culture, faith and community connections.

Demand for the service remained strong. Occupancy levels were consistently high, and both homes continued to perform well. Contract monitoring demonstrated high levels of resident and family satisfaction, stable staffing arrangements, low levels of complaints and safeguarding concerns, and continued compliance with the Council’s quality expectations.

The Council’s Needs and Gaps Analysis found no equivalent provider within approximately 75 miles that was capable of delivering the same combination of residential care, nursing care and culturally specific support. A direct award was therefore considered the most proportionate and least disruptive option available. It protected resident choice, maintained continuity of care, and supported the Council in meeting its duties under the Care Act 2014.

The proposed contract also provided stability for residents, families and the provider.

Alternative Options Considered

Option 1: Do Nothing

This option was rejected.

Without these contracts in place, the Council would have lost guaranteed access to 39 culturally specific residential and nursing care beds and would have been required to rely on spot-purchasing arrangements. Residents could have experienced reduced choice, and there would have been no assurance that culturally appropriate alternatives could be sourced when placements were required. The Council would also have lost the ability to agree longer-term pricing and performance expectations through a contractual arrangement.

Option 2: Competitive Procurement

This option was considered but rejected.

Market intelligence indicated that there were no providers capable of delivering the same culturally responsive model of residential and nursing care at this scale. A procurement exercise was therefore unlikely to attract equivalent providers and could have created uncertainty for residents and families. The wider care home market continued to operate primarily through spot-purchasing arrangements, and providers had limited incentive to participate in a competitive tender process where demand already exceeded supply.

Option 3: Direct Award (Preferred Option)

This option was recommended.

It maintained continuity of care, preserved resident choice, secured access to a specialist service, and allowed the Council to continue working with a provider that was performing well. It also avoided unnecessary disruption while providing time to consider future commissioning arrangements.