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RESOLVED:
 
To agree the extension of  the
current Temporary Accommodation Dynamic Purchasing System for a
period of up to four years, from 26th January 2024 to 26th January
2028.
 
Reason(s) for the Decision
 
1. 
The DPS was procured
in 2016, to replace two framework agreements (one each for stage 1
and stage 2 accommodation) which had been the source
of temporary accommodation suppliers for the Council. This
model offered
an ineffective solution, as Frameworks are closed after the
tender process,
restricting the service to only those providers appointed
to the Framework.
The nature of the accommodation needs in Hackney meant that
suppliers
were required urgently and this resulted in a large amount
of off contract
spend as officers used non Framework providers to meet
urgent need, which was either non-compliant (under Council Contract
Standing Orders [CSOs], which state spend must be covered by a
contract or a STA), or covered by a large number of Single Tender
Actions (STAs).
 
2. 
The Dynamic Purchasing
System model offered a resolution to this issue, as suppliers can
join a DPS at any stage of its duration, and can try again if their
application fails. This allows for the service to encourage more
suppliers to join the DPS, offering a wider variety of
accommodation options, giving a more compliant solution and
reducing off contract spend and STAs.
 
3. 
The DPS system was
then extended for a further three years. This was to
allow a comprehensive review of systems to take place which
had been on
hold due to the resource impact of the Covid19 pandemic.
This was agreed
at Cabinet Procurement Committee Meeting on the 7th
December 2020.
 
4. 
The DPS is currently
divided into 4 categories based on the types of properties required
by the Council. These categories are Bed and Breakfast, Hostels,
Annexes and Private Sector Leased accommodation. During the 4 years
of operation, the current DPS has seen bids from a wide variety of
providers, including local small and medium enterprises and larger,
national companies.
 
5. 
This model will
continue during the extension period. The volume of work under each
category is reliant upon the requirements of residents being placed
into temporary accommodation.
 
6. 
The comprehensive
review of systems that was due to take place has been disrupted by
the impact of the cyber-attack. The key systems that were utilised
by the Temporary Accommodation Team i.e. Temporary Accommodation
Payment to Landlord (TAPL) and Universal Housing (UH)
were lost in the attack.
7. 
Work is ongoing to
build new systems to replace the manual processes that
are currently in place. Meaning at this time we are not in
a position to
integrate any alternative property management
system.
 
8. 
The proposal is
therefore to extend the current DPS contract by four
years
to allow the new systems to be fully built and embedded
into the Benefits &
Housing Needs Service.
 
9. 
Following the new
systems being embedded this will also allow time for a
further option appraisal to be carried out based on revised
requirements.
 
Alternative Options (Considered and
Rejected)
 
Build A Bespoke Management System In
House
This option was rejected for two reasons, firstly the
significant cost and resources required from the Council to develop
and build a bespoke in-house system. Secondly, the other systems
currently in use within the service are manual or in the process of
being rebuilt following the cyber-attack. Meaning we are not
currently able to clearly define the integration required for any
management system to work effectively
 
Purchase ADAM Or Another Temporary
Accommodation Property Management Software Solution.
The ADAM product can either be purchased and utilised as a
direct replacement for the DPS or can be joined as part of the WREN
Group (Waltham Forest, Redbridge, Ealing and Newham).
 
Utilising the ADAM solution through the WREN Group has the
following
advantages:
· 
Councils use many
common suppliers and 49 of our suppliers are already on the ADAM
system.
· 
ADAM supports
suppliers through the application process. Removing the need for
the time consuming chasing, evaluating and scoring.
· 
Once a supplier is
approved available properties are loaded onto the system for
Councils to book. Currently this is all done manually via emails
between various officers and suppliers.
· 
All the relevant
safety certificates are also uploaded with the property and the
system provides prompts for when these are due to expire. Again
these are currently provided manually via email exchange with the
supplier. Documents are being stored on google drives and logged on
a spreadsheet to track expiry dates.
· 
Payments are
automatically adjusted for overpayments utilising the booking dates
entered. Payments currently have to be manually
adjusted.
 
The main issue regarding the potential use of ADAM is the
manual processes that are currently used within the Benefits &
Housing Needs Service. Following the loss of legacy systems in the
cyber-attack, bookings and payments are made via a complex network
of spreadsheets.
 
Development work is ongoing to build new systems that will
allow booking and payments to be carried out more effectively.
Until these are operational, the Benefits & Housing Needs
Service isn't in a position to accurately scope the integration
requirements of ADAM.
 
ADAM is designed purely to procure, book and make payments
for temporary accommodation from private providers. The Benefits
& Housing Needs Service also needs to make payments for void
Council properties used for temporary accommodation and leased
properties.
 
This option was rejected as the research carried out into
using ADAM (or an
alternative system, if available as the market is extremely
small) highlighted the need for clear, effective integrations
between ADAM / the system and other Hackney systems, such as
payments and housing allocations, in order to achieve the best
results. As set out above, these processes are currently manual and
carried out utilising a complex network of spreadsheets, so
integration isn’t currently possible or cost effective. Also
there is currently ongoing work building new systems for temporary
accommodation bookings and payments, until these have progressed
further, it is not possible to effectively integrate a management
system such
as ADAM.
 
Procure a new Dynamic Purchasing
System
This option was rejected for three reasons. Firstly, the
time required to complete the full Find a Tender process needed to
set up a new Dynamic Purchasing System would be significant, a
minimum of six to nine months. The process would not be complete
prior to the end of the current DPS and short / medium term Single
Tender Actions would need to be put in place for all DPS
suppliers.
 
Secondly, the time and resources required, from both the
Council in setting it up and the suppliers in applying to join
(current DPS providers would have to reapply to join the new
system) would be significant. The Benefits & Housing Needs
service is currently under extreme pressure due to the increase in
homeless approaches, the impact of the Housing Crisis on supply and
the cost of living crisis, meaning it is not possible to undertake
this resource intensive piece of work.
 
Thirdly, the procurement of a new DPS would not resolve the
wider issues, regarding the volume of manual processes currently
being utilised to provide and manage accommodation. As discussed in
this report, work is ongoing to build new systems to resolve this.
The commitment to a new DPS would not fit into the long term
strategic goals of the service area, and may add further
complication.