Purpose

The purpose of the report is to seek approval in accordance with Contract Procedure Rule 9.4.2 (5), to modify the contract with the Coffee House Ltd for provision of vouchers to be given to new starters on Induction, modified by extending the term from 14th June 2026 to 13th June 2027. Supplier has advised a further review will be required in May 2027 to secure any further contractual arrangement after this date due to an increase in costings.

The modification is justified as the following requirements of Contract Procedure Rule 9.4.2 are met as follows:

(5) The proposed contract extension with The Coffee House Ltd. is considered compliant with Contract Procedure Rule 9.4.2(5) for the following reasons:

(a)  The modification provides for the continued delivery of voucher provision to new starters as part of the Council’s corporate induction programme. This requirement remains an integral component of the induction model, supporting the Council’s objective of delivering a positive employee experience from day one. The extension therefore enables the continuation of services already delivered under the existing contractual arrangement.

(b)  Incompatibility with alternative supply

A change in supplier would result in the provision of services that are different                         from those currently delivered. The current provider offers a combination of location, accessibility, and value (including enhanced voucher value), which has been embedded into the design and delivery of the induction programme. Due to the limited availability of comparable local suppliers within walking distance and the specific nature of the current offer, an alternative provider would not replicate the same service model.

(c)  Disproportionate inconvenience and duplication of costs

The use of a different supplier would result in disproportionate operational inconvenience and additional cost to the Council. This includes the need to undertake procurement activity, and establish new supplier arrangements. There would also be a risk of reduced quality and consistency in the employee experience during transition. These factors would result in duplication of costs and inefficiencies which would not represent value for money, particularly given the low overall contract value

In addition, continuation with the existing provider ensures consistency of delivery, maintains a positive first-day experience for new employees, and supports a local business in Huyton Village, contributing to wider social value objectives.

Decision

(i)             That, in accordance with Contract Procedure Rule 9.4.2(5), the contract with The Coffee House Ltd. for the provision of vouchers to be given to new starters on Induction be modified by extending the term from 14th June 2026 to 13th June 2027; and

(ii)            That the Procurement Team be authorised to issue the relevant contract modification documentation.

Alternative options considered

Do Nothing: This option was considered and rejected as the current offer adds to a feeling of welcome on the first day and improves the reputation of the Council as an Employer of Choice.

Seek Competition (Quotation / Tender): This was considered and rejected as the current provider gives £7 worth of vouchers for £5, it was thought unlikely that this could be matched.  The Induction will also be reviewed over the next 12 months when Journey 2 begins which is an appropriate point to carry out such an exercise.

Deliver in house: This option was considered and rejected because we do not have the facilities to provide food/ drink in the same ways as the provider.