Content

Salford City Council – Record of
Decision
 
I Paul Dennett, City Mayor, in exercise of the powers contained within the
Council Constitution
do hereby approve:
 
·     
an Exception to Contractual Standing Orders to award
a contract for the mandated Substance Misuse Treatment and Recovery
services in Bolton, Salford, and Trafford, as detailed in the table
below:
 

Detail required

Answers

Title/Description of Contracted
Service/Supply/Project

Commissioning of the
Substance Misuse Treatment and Recovery Services in Bolton, Salford
and Trafford

Name of Successful
Contractor

Greater Manchester Mental Health NHS Foundation
Trust

Supplier Registration Number

(to be supplied by Corporate
Procurement)

Type of organisation

(to be supplied by Corporate
Procurement)

Other

Status of Organisation

(to be supplied by Corporate
Procurement)

Non-SME

Contract Value (£)

£         
Total contract value £9,394,957 for 12 months
Salford contract value: £3,926,631,
Bolton contract value    £3,366,556
Trafford contract value: £2,101,770

Contract Duration

12 months

Contract Start Date

01/04/2025

Contract End Date

31/03/2026

Optional Extension Period 1

N/A

Optional Extension Period 2

N/A

Who will approve each Extension
Period?

Procurement Board (extension >
£150k)

Contact Officer (Name &
number)

Nicky Herne 0161 603 4171

Lead Service Group

Public Health

How the contract was procured?

(to be supplied by
procurement)

 

Framework Details (where
applicable)

(procurement body, framework reference
& title, start/ end date

 

Funding Source

Grant

Ethical Contractor (EC): Mayor’s
Employment Charter

 

EC: Committed to sign Charter

 

EC: Accredited Living Wage
Employer

 
The Reasons are:
The
current contract expires on the 31st of March 2025. In
January 2024, the Provider Selection Regime (PSR) regulations came
into force which applies to public health and health contracts
including the direct award or extension, of this
contract.
 
Salford City Council procurement and legal teams reviewed the
contractual options available. Over the last 12 months, work has
occurred on Commissioners within the Bolton, Salford and Trafford
cluster exploring all procurement options and to agree the most
suitable procurement route for the service post 31st March
2025.
 
In
April 2024, commissioners jointly agreed that the preferred
procurement route would be to work with GMMH to secure a new five
plus two year contract, following Provider Selection Regime (PSR)
Direct Award Process C. From April 2024 to December
2024,negotiations on Direct Award C have occurred between
Commissioners and GMMH colleagues. During negotiations, GMMH
requested an increase in overheads from 8% to 14%. This figure was
not agreeable, nor financially sustainable for all three Local
Authorities. A 11% overhead figure has now been agreed for all
parties for the 12-month extension.
 
Options considered and rejected
were: Direct Award C (tri-borough)
                                                           
         Direct
Award C (bi-borough)
 
On
the 23rd of December 2024, GMMH confirmed their preferred option
was to proceed with 12-month extension and not to proceed with
Direct Award C. This 12-month extension to the contract is via
“PSR Modification of a contract: Urgent Circumstances”.
This can be progressed in a short timescale providing stability to
the service provider and staff. Due to the time taken to reach
agreement on what was a reasonable offer, the urgent circumstance
process is now required. The reason for this was not foreseeable
and is not attributable to the contracting authority.
 
Procurement and Legal services are satisfied that delaying the
award of the contract to conduct a full application of the regime
would be likely to pose a risk to patient or public safety and
would therefore meet the requirements to justify an urgent
modification to extend the current contract. Legal and Procurement
are also satisfied that the suggested extension length is
appropriate and proportionate to enable the Council to review the
service specification and budget before going out to
reprocure.
 
However, whilst the legal and procurement routes are satisfied,
there are service terms to re-negotiate with GMMH, given the time
passed and changing economical position since the original contract
was awarded. The parameters of the ‘change threshold’
within the PSR regulations are considered throughout these
negotiations.
 
 
Assessment of Risk: High
The Substance Misuse Treatment
and Recovery Services are mandated services which help prevent,
manage, and treat drug and alcohol misuse for adults, young people
and their families.
 
Not extending the contract
would affect, not only the current provision and all providers, but
all additional grant funding is based on the existing services.
This would also affect the other boroughs in the cluster
arrangement, Bolton and Trafford councils as well as
Bury.
 
The source of funding
is: Public Health
Grant.
 
Legal Advice obtained: Supplied by: Lauren Armstrong,
Shared Legal Service, lauren.armstrong@manchester.gov.uk
– Contained within the Procurement Board
Report, 10th February 2025
 
Financial Advice
obtained: Supplied by:
Michelle Cowley, Finance Team
Michelle.cowley@salford.gov.uk
– Contained within the Procurement Board
Report, 10th February 2025
 
Procurement Advice obtained:
Supplied by: Carolyne Knott, Corporate Procurement Team
carolyne.knott@salford.gov.uk
– Contained within the Procurement Board
Report, 10th February 2025
 
HR Advice obtained:
N/A
 
Climate Change Implications
obtained: Supplied by: Mike Hemingway, Environment Policy
Team Mike.hemingway@salford.gov.uk
– Contained within the Procurement Board
Report, 10th February 2025
 
The following documents have
been used to assist the decision process:
·     
Salford Locality Plan
·     
From Harm to Hope: A 10 Year Drugs Plan to Cut Crime
and Save Lives
 
Contact Officer: Gillian McLauchlan
Telephone number: gillian.mclauchlan@salford.gov.uk
/ 0161 607
6936
 
·     
This matter is also subject to consider by the Lead
Member for Adults. The Lead Member has been consulted and is
supportive of the proposed contract.
·     
The appropriate Scrutiny Committee to call-in the
decision is the Health & Adults Scrutiny Panel.
 
Signed:    Paul
Dennett       Dated:    10 February 2025.
           
       City
Mayor

 

FOR DEMOCRATIC SERVICES USE ONLY:

This decision was published on 11
February 2025
This decision will come in force
at 4pm on 18 February 2025 unless it is called-in in accordance
with the Decision Making Process Rules.