Purpose

The purpose of the report is to seek approval
in accordance with Public Contract Regulations 2015, Regulation
72(1)(e) to modify thirteen Adult Social Care contracts , as
detailed in appendix A, be modified by price to have their fee
rates increased to levels that allow for the Real Living Wage to be
passed onto their care staff, and have their terms amended to
stipulate that providers pay their care staff at Real Living Wage
for 2025/26 financial year.
 
This modification is justified as the
requirements of Public Contract Regulations 2015 Regulation
72(1)(e) are met as follows:
 
 
72. (1) Contracts and framework agreements may
be modified without a new procurement procedure in accordance with
this Part in any of the following cases:—
 
(e) where the modifications, irrespective of
their value, are not substantial within the meaning of paragraph
(8)
In this instance, the proposed modifications
would not
(a) 
render the contracts materially different in character
(b) 
introduce additional conditions that would have influenced the
conduct or outcomes of the original tender processes
(c) 
change the economic balance of the contracts in favour of the
contractors
(d) 
does not extend the scope of the contracts considerably
does not involve new contractors replacing
those originally awarded contracts.

Decision

 
(i)            
That, in accordance with Public Contract Regulations 2015,
Regulation 72(1)(e), thirteen Adult Social Care contracts as
detailed in appendix A, be modified by price to have their fees
rates increased to levels that allow for the Real Living Wage to be
passed onto their care staff, and have their terms amended to
stipulate that providers pay their care staff at Real Living Wage
for 2025/26 financial year;
 
(ii)           
That all fee rates payable by the Council are amended through
contract modifications, and that one-off payments will be made to
providers of an amount equal to what they would have been due had
their respective contracts been modified with effect from 1 April
2025; and
 
(iii)          
That the Procurement Team be authorised to issue the relevant
contract modification documentation.
 
 

Alternative options considered

Do Nothing:
This option was considered and rejected
because the Council wants to ensure that the Real Living Wage is
passed onto front line staff who are supporting the delivery of
care and support to some of the most vulnerable people in our
community.  Without the modifications to
the contracts, the Council cannot ensure full compliance with this
stipulation is fully complied with.
 
Seek Competition
(Quotation / Tender):
Each of the contracts under this modification
have been tendered for as part of a fair and competitive
process.  As each contract expires, they
will be re-tendered as per the Council procurement rules at that
time.  This modification seeks to ensure
that all current contracts can ensure care staff are paid fee rates
that allow them to pay the Real Living Wage to their
staff.  All contracts are performing at
a satisfactory standard and there was deemed no need to complete a
competitive exercise for this reason at this time.