Purpose

This report asks Cabinet to approve a contract
award for the supply of temporary workers.  Although the Council seeks to minimise the use of
agency staff, there will always be some need for them. This
recommendation is made to Cabinet following an extensive exercise
to evaluate the different options available to the Council.
The contract is proposed to be awarded to
Adecco via a procurement arrangement referred to as the Eastern
Shires Purchasing Organisation (ESPO) Managed Services for
Temporary Agency Resources 4 (MSTAR4) London
Collaboration. 

Decision

Decision
 
For the reasons set
out in the report and its appendices Cabinet RESOLVED to Agree to:
 
i) 
Award a contract to Adecco UK Limited, for the supply of temporary
workers from 14th March 2025 for a period of two years, with the
option to extend for a further two years and two years after,
subject to Adecco achieving excellent performance in line with
agreed outcome targets.
 
Alternatives
Considered
 

a) 
Officers have undertaken an extensive exercise to evaluate the
different options available to the Council for sourcing temporary
workers, as set out in section 4 above.

The following options were considered and discounted:

· Running a Further Competition under
either YPO (Temporary and Permanent Recruitment) or ESPO (MSTAR4)
frameworks. This was discounted as it is more resource intensive
and rates may not be as favourable, as the level of spend would not
achieve the cost avoidance identified by the London Collaborative
procurement.

· Open Tender This was discounted, as the
approach would be highly resource intensive, and rates may not be
as favourable, as the level of spend would not achieve the cost
avoidance identified by the London Collaborative procurement. It is
highly likely that the same suppliers would tender, as they have
been procured already under the available frameworks, alongside the
suppliers that were unsuccessful on gaining entry to the MSTAR4 or
YPO frameworks. For example, out of 40 supplier bids received to
join MSTAR4, 16 were awarded a place.

· Entering into a joint venture with Kent
Commercial Services (Kent County Council) This was discounted,
because it would require setting up a company and team to deliver
and manage the recruitment service within Newham, in partnership
with Kent Commercial Services. Robust knowledge, expertise and
skills would be required and would take time to establish. All
accountability would lie with the council, rather than service
providers. Whilst this option has been successfully implemented
outside of London, it has not been used inside London where
competition between boroughs for resource is higher.