Purpose

This
request seeks authority to vary the contract terms and rates for
Meadowside and Dell Field Care Homes delivered by Your Choice
(Barnet) Limited (YCB). This will enable (i) termination of the
interim care taking arrangement, which is due to expire on
7th July 2024 and (ii) extension of the contract for a
further 2 years in accordance with the revised sustainable
terms.
 
The Council entered into a time limited care-taking
agreement with its Local Authority Trading Company YCB on 8th July
2019 for the provision of residential and nursing care, respite
care and day opportunities for older people, people with a physical
disability and people with a sensory impairment, including services
for people with a learning disability, people with dementia and
culturally specific services for people falling into one or more of
these categories. Since then, the Council has invested a
significant amount of funds through the capital grant to fully
refurbish the homes to enhance the standard, safety, and their
environmental sustainability. The care-taking contract was further
extended during the refurbishment work for a period of three years,
to 7th July 2024 through a Deed of Extension and
Variation.  Dell Field refurbishment wok
was complete in March 2024 and Meadowside refurbishment is due to
complete in July 2024. 
 
Following consideration of the commissioning options
agreement has been reached to terminate the current care-taking and
full cost recovery arrangements for Meadowside and Dell Field Care
Homes and to implement a sustainable model with variation to the
block bed rates.
 
There has been no rate increase since 2019 because of the
complete cost recovery care-taking arrangement for the term of the
contract. Following the capital investment and subsequent
increasing stability in resident placement it is proposed that the
updated sustainable weekly bed rates are implemented. These will be
effective from 1st April 2024, in anticipation of ending
the caretaking arrangement and implementing sustainable budgets
from the start of this financial year, 2024-25.
 
Authorisation is sought to extend the contract under
the Teckal Exemption and the Public Contracts Regulations (2015).
The initial duration of the contract extension would be two years
from 8th July 2024 – 7th July 2026 with the option for
further extension, 2+2 years thereafter, (6 years in
total).  This will
avoid the need for an urgent and lengthy procurement process and
for the contract to be maintained under the current care-taking
arrangement which will pose a significant financial risk to the
Council. It also ensures service continuity and
viability.
 
The
variation to the contract will be completed in two stages, through
a Request for Change as part of the Change Control Process set out
in the contract.   The first and more urgent step is
variation to financial agreements, which will be applied from
1st April 2024. The second variation will be applied
from 8th July 2024.This will include other key contract
variations such as key performance indicators (KPIs) and service
specification, ensuring they are current and reflect service
outcomes.