Cabinet Procurement and Insourcing Committee - Monday 15 July 2024 2.00 pm

July 15, 2024 View on council website
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Summary

This meeting was scheduled to discuss a range of procurement decisions including the award of contracts for the provision of domestic abuse support services, a framework of contractors and consultants for the Corporate Property and Asset Management team (CPAM), cloud hosting services, and the development of new homes at the De Beauvoir Estate. The documents do not tell us what was discussed at the meeting or whether any decisions were made.

Domestic Abuse Accommodation Based Refuge Support Service

A report was provided that sought approval to award a contract to an organisation referred to as Supplier A for the provision of domestic abuse accommodation based refuge support services. The contract would be split into two lots: Lot 1 for a culturally specific service, and Lot 2 for a generic service.

Both lots would provide support to vulnerable women aged 16 and over, including those with children up to the age of 14 years.

The report notes the statutory obligations on councils in England to provide such support under the Domestic Abuse Act 2021.1 It also considers the duty on local authorities to provide advice and support to prevent abuse and neglect under the Care Act 2014.2 The report also acknowledges the Council's duty to provide housing advice under the Housing Act 1996, Homelessness Act 2002 and Homelessness Reduction Act 2017.3

The report pack includes a briefing on the potential for Hackney to provide this service in-house, concluding that this would not be viable due to the availability of a viable market of providers with expertise in advocating and supporting victims of domestic abuse. The in-house option was also dismissed due to the potential risk of losing access to properties currently used by domestic abuse services in the borough.

The report pack included an Equality Impact Assessment (EIA) which identified a number of positive impacts, including protection for pregnant women and their babies, and the fact that there is no blanket ban on trans women accessing women's refuge provision.

The total cost of the service over the seven year duration of the contract (5+1+1 years) would be £2,390,259.50.

The report pack also includes a full breakdown of the key performance indicators that would be used to measure the performance of the service, such as the percentage of units occupied, and the proportion of service users supported to achieve independent living.

Universal Youth Services

The report pack included a report seeking approval to award 10 contracts to nine organisations for the provision of universal youth services to be delivered through a mixture of centre-based (locality), outreach, peripatetic and detached youth work arrangements.

The procurement was scheduled for discussion following the end of contracts delivered under the Connecting Young Hackney Framework and incorporates the findings of the independent review of Young Hackney, which was conducted in Summer 2023, and recommendations from the Hackney Young Futures Commission.

The report notes the statutory requirement on councils to secure educational and recreational activities for young people, as set out under Section 507B of the Education and Inspections Act.4

The procurement sought to respond to a number of local priorities, including the need to address the over-representation of Black and Global Majority young people in data relating to social care, mental health, school exclusions and youth justice. The procured services would also seek to respond to issues raised by young people through their participation in local initiatives such as the Hackney Young Futures Commission. These included concerns relating to poverty, mental health, housing, education and crime.

The report pack includes a breakdown of the cost of each of the contracts and the total value of the services over the five-year duration of the contracts (3+1+1 years) would be £2,864,836.50.

The report pack also includes a list of the key performance indicators for the service, such as the proportion of young people who report feeling safe attending activities, the percentage of young people who develop more confidence and personal agency, and the number of young people able to access support to overcome barriers to their progression.

De Beauvoir Estate Procurement of a Design and Build Contractor

A report pack was included for discussion on the proposed procurement of a principal contractor for the development of new homes at the De Beauvoir Estate as part of the Council’s Housing Supply Programme.

The report pack notes the challenges caused by the coronavirus pandemic, the war in Ukraine and rising inflation, as well as new building regulations for fire safety and sustainability that have increased the cost of building new homes. A scheme viability review was conducted in 2022-2023, which led to the scheme being redefined and updated to address these challenges.

The report pack seeks approval for the use of a two-stage design and build contract model with an initial Pre-Construction Services Agreement (PCSA). This approach will allow the Council to benefit from the technical expertise of the contractor at an early stage of the project. The contractor will be able to advise on buildability, help to value engineer the scheme and contribute to the final design.

The report pack outlines the benefits of appointing a Tier 2 contractor operating in a design and build capacity, concluding that the project is arguably not large enough to achieve value for money from a national (Tier 1) contractor or developer.

A number of risks to the project are identified, such as the possibility that tenders may be returned over budget and the potential for buyers to be priced out of purchasing new shared ownership homes. The potential for a possession claim from the existing nursery to be made for the playspace is also identified.

The report pack includes a summary of the sustainability and social value benefits of the development including proposals to create new pedestrian and cycle routes, the use of air source heat pumps, plans for sustainable drainage, rainwater harvesting and green roofs, and commitments to provide local training and employment opportunities.

The construction contract for the project would be a Joint Contracts Tribunal (JCT)5 2016 Design and Build Contract, incorporating Hackney Council amendments.

Corporate Property and Asset Management Procurement of Professional Services

The report pack includes a business case for the procurement of a framework of professional consultants to support the Corporate Property and Asset Management team (CPAM) in delivering its capital programme.

The report notes that a number of condition surveys conducted by the Chartered Institute of Public Finance and Accountancy (CIPFA)6 for a number of the Council’s non-housing property portfolios have identified a significant backlog of maintenance and compliance-related work that needs to be carried out. CPAM has been successful in securing capital investment to address this backlog, and is seeking to establish a new framework of consultants to support in the delivery of these works.

The report pack outlines the benefits of procuring the new framework, such as the opportunity to make efficient use of officer time by providing a quick route to the appointment of pre-vetted and high-quality consultants, and the potential to achieve savings by creating a more competitive environment.

The procurement will seek to appoint local small and medium sized enterprises (SMEs) wherever possible, with the preferred model consisting of three lots covering a range of specialist areas. These include:

  • Architectural and Engineering Services
  • Multidisciplinary Consultants including Cost Consultants and Project Managers
  • Building Consultants.

Contracts will be awarded from the framework based on mini competitions and direct awards.

The report pack includes an assessment of the risks associated with the procurement, including the potential for contractors to fail financially or operationally, the risk that suppliers may not comply with their contractual obligations, the possibility of high inflation and the risk that there may be a lack of interest from the market in participating in the framework agreement.

Corporate Property and Asset Management Procurement of Construction Contractors

The report pack includes a business case for the procurement of a framework of construction contractors to support the Corporate Property and Asset Management team (CPAM) in delivering capital projects.

The report notes the importance of the procurement in the context of the Council’s long term corporate maintenance strategy and follows the award of a number of single tender action contracts to ensure continuity of service in advance of the new framework being established.

The report outlines a preferred option that would see the establishment of a framework of local small and medium sized enterprises (SMEs) to be used by the Council for a period of four years. The total value of the works expected to be procured through the framework is £69.5m.

A number of risks associated with the procurement are identified, such as the risk of supplier failure and the possibility that contractors may not comply with their contractual obligations.

Amazon Web Services One Government Value Agreement 2.0 Contract

A report was provided seeking approval for the award of a contract for cloud hosting services to Amazon Web Services (AWS). The contract would be awarded via the Crown Commercial Service7 G-Cloud framework using the One Government Value Agreement (OGVA) pricing model.

The report pack notes that the council has adopted a ‘cloud unless’ approach to its ICT infrastructure and that the cyberattack of 2020 accelerated the migration of services to the cloud.

The Council currently uses a multi-vendor model for its cloud services with AWS providing the Council’s primary cloud platform. This platform hosts a number of the Council's core systems and plays an important role in integration and security with other cloud services delivered by different providers.

The report pack sets out a number of reasons for choosing to continue using AWS, noting that AWS has proved to be a robust platform with excellent support and has provided us with a stable, secure and reliable platform from which to deliver our services to residents.

The OGVA pricing model provides the Council with access to discounted pricing for a contractual commitment value based on spend over the previous 12 months. This will lead to savings of £649,781 over the three year duration of the contract.

The report pack includes a breakdown of the cost of the service over the three year period, including a summary of the savings achieved through the OGVA pricing model. The report pack also includes details of the key performance indicators for the service such as uptime and reliability.

A number of social value benefits were also proposed by AWS, such as hosting events for local voluntary, community and social enterprises (VCSEs) and offering training opportunities to local residents.

General Buildings Contract 2 for Direct Labour Organisation Support Contractor

The report pack includes a report seeking approval to award two contracts for general building works to support the Council’s Direct Labour Organisation (DLO). The contracts would be awarded following a tender exercise undertaken in accordance with the Public Contracts Regulations 2015.8

The works would be split into two separate contracts with a 60/40 percentage split of the work allocated across the borough. The contracts would cover a range of works including reactive repairs, voids, legal disrepair, electrical works and scaffolding.

The report notes the importance of ensuring that the council has “the appropriate contracts in place to deliver an effective responsive repair service across all of our housing stock”.

The total value of the contracts over the three year period (2+1 years) would be £2,511,858.73 excluding VAT.

The contracts would be awarded using the Joint Contracts Tribunal (JCT)5 Measured Term Contract 2016, incorporating Hackney Council amendments. The contracts would also utilise the National Housing Federation (NHF)9 v7.2 schedule of rates.

The report pack includes a breakdown of the cost of each contract and the potential savings that could be achieved through the procurement exercise. It also sets out the sustainability and social value benefits of the procurement, noting the Council’s commitment to “reaching net zero”, ensuring the payment of the London Living Wage and providing opportunities for local residents.

The report pack includes a risk assessment for the project that identifies potential issues such as delays to contract mobilisation and the risk of poor performance from the contractor. It also notes the potential for suppliers to fail.

The report pack also includes a summary of the key performance indicators for the contract such as the accuracy of contractor applications for payment, post-inspection pass rates, resident satisfaction and the number of appointments kept.


  1. The Domestic Abuse Act 2021 introduces new legal duties on local authorities in England to provide support and refuge accommodation for victims of domestic abuse and their children. 

  2. The Care Act 2014 places a responsibility on local authorities to promote an individual's wellbeing. This includes safeguarding adults from abuse and neglect.  

  3. The Housing Act 1996, Homelessness Act 2002 and Homelessness Reduction Act 2017 place duties on local authorities to assess an individual's eligibility for housing assistance and prevent and relieve homelessness. 

  4. Section 507B of the Education and Inspections Act 2002 places a statutory duty on local authorities to secure sufficient leisure-time activities and facilities for children and young people in their area. 

  5. The Joint Contracts Tribunal (JCT) is a membership organisation that produces standard forms of contract for construction projects in the UK. 

  6. The Chartered Institute of Public Finance and Accountancy (CIPFA) is the professional body for people in public finance. 

  7. The Crown Commercial Service (CCS) is an executive agency and trading fund of the Cabinet Office of the UK Government. CCS supports the public sector to achieve maximum commercial value when procuring common goods and services. 

  8. The Public Contracts Regulations 2015 govern the procurement of public sector contracts by local authorities in England and Wales. 

  9. The National Housing Federation (NHF) is the voice of housing associations in England. It represents housing associations of all sizes and provides support, guidance and training on a range of topics.