Decision details

To seek approval to commence the development of a Dynamic Purchasing System for the external procurement process of Substance Misuse Residential Rehabilitation Programmes. Substance Misuse Rehabilitation Programmes are currently commissioned from a range of service providers based on individual need and requirements.

The Cabinet considered the report of the Director of Public Health which provided details of the key findings of a review of current commissioning arrangements for Substance Misuse Residential Rehabilitation Programmes for the residents of Sefton and sought authorisation to commence a procurement process to establish a Dynamic Purchasing System for future placements.

Decision Made: That

(1)       the Director of Public Health be authorised  to conduct an OJEU Light-Touch Regime tender exercise to establish a Dynamic Purchasing System for substance misuse Residential Rehabilitation to run for a period of two-and-half years from 1 October 2017 with the option of two further one-year extensions with a ceiling price of £300,000 per annum; and

(2)       the Director of Public Health be granted delegated authority in consultation with the Cabinet Member – Health and Wellbeing to award the contracts to the highest scoring bidders, within the context of the approved budget and Medium Term Financial Plan.

Reasons for Decision:

A Dynamic Purchasing System (DPS), as provided for within the 2015 Public Contracts Regulations, would enable Sefton Council to ensure that fair and transparent commissioning arrangements are in place while enabling an individually tailored programme appropriate to the individual’s needs and requirements. The key advantage of establishing a DPS was that the applicable legislation allows the Council to open up the DPS to new applicants at pre-determined anniversary points during its lifespan. This therefore gives the Council the flexibility to take advantage of beneficial changes within the marketplace which may take place over time.

Alternative Options Considered and Rejected:

(i)         To establish a Framework Agreement for commissioning Residential Rehabilitation Programmes.

Whilst a Framework Agreement would comply with revised procurement rules, it does not give Sefton Council the degree of flexibility required to remain responsive to on-going change, as importantly, new providers to the market are prevented from joining a Framework Agreement at any point during its lifespan, which can be a maximum of 4 years.

(ii)        To continue to “Spot Purchase” as and when Residential Rehabilitation is required.

Spot Purchasing required considerable time to identify and negotiate suitable placements and provided for less transparency and ability to benchmark costs. Both a Framework and a DPS would enable longer-term contracts to be entered into with a range of Providers providing better service stability and better value in the contract cost.