Decision details

The Cabinet considered the report of the Director of Older People on the proposed procurement exercise to be undertaken in order to replace the Homeless and Housing Related Support contracts that were due to expire on 30 June 2015.

Decision Made:

That:

(1)       the procurement process, as set out in the report, for the

replacement of the Homeless and Housing Related Support contracts be approved; and

(2)       the Director of Older People be authorised to award the contract(s) to the highest scoring bidder(s) at the end of the procurement process

The Homeless and Housing Related Support contracts with an annual value of £1,196,180 expire on 30 June 2015 and any replacement contracts must be procured in compliance with Public Contract Regulations.   

The services covered by these contracts are important services for the delivery of the Council’s Homeless Strategy.

In light of the Council’s reducing financial resources and recognising the current cost of the separate existing services, the anticipated cost-efficiencies that might be gained from the commissioning of a more integrated service and the fact that many of the current services are discretionary services, it is intended to procure the new services at a significantly lower value.

Alternative Options Considered and Rejected:

The Council could determine to only provide statutory homeless services and to cease provision of wholly discretionary and preventive service. Implications of deciding not to procure replacement services would be:-

·         A reputational and financial risk to the authority by the potential failure to perform its statutory duty to homeless applicants. This could result in expensive litigation including judicial review proceedings.

·         An increase in the cost of the Council having to provide temporary accommodation for homeless people in expensive B&B placements that are currently rarely used.

·         A potential increase in expenditure for Children’s Services for 16-17 year children who are homeless. Many young people need housing and low level support to move on in to independence; if these services did not exist then there would be a greater burden on Children’s Services.

·         A potential increase in rough sleeping in the Sefton Borough; the accommodation services provide accommodation for residents who would otherwise be street homeless.

The Council could also determine to procure the services but at a lower “ceiling” price. The scale of reduction in provision and the extent to which the above implications are applicable would depend upon the market and the tenders received.