Content

Salford City Council – Record of
Decision
 
I Councillor Youd, Lead Member
for Finance and Support Services and chairman of the Procurement
Board, in exercise of the powers contained within the
Council Constitution
do hereby approve:
 
·     
Salford City Council participating in the Greater
Manchester Collaboration for provision of Occupational Health
Services, via the use of a beneficiary agreement with Oldham
Council who are the contracting authority with the provider
(Optima), as detailed in the table below:
 

Detail required

Answers

Title/Description of Contracted
Service/Supply/Project

Occupational Health Services

Name of Successful
Contractor

Greater Manchester
Collaboration OH Services

Supplier Registration Number

(to be supplied by Corporate
Procurement)

Type of organisation

(to be supplied by Corporate
Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate
Procurement)

Non-SME

Contract Value (£)

Circa £92,000 per annum
estimate. Contract Total £368,000

Contract Duration

24 Months

Contract Start Date

01/04/2024

Contract End Date

31/03/2026

Optional Extension Period 1

12 months

Optional Extension Period 2

12 months

Who will approve each Extension
Period?

Strategic Director (extension <
£150k)

Contact Officer (Name &
number)

Steve Hulme
07951 352457

Lead Service Group

Service Reform & Development

How the contract
was procured?

(to be supplied by
procurement)

Greater Manchester Collaboration Tender

Framework Details (where
applicable)

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

 

Funding Source

Revenue Budget

Ethical Contractor (EC): Mayor’s
Employment Charter

 

EC: Committed to sign Charter

 

EC: Accredited Living Wage
Employer

 
The
Reasons are:
The current shared service arrangements for the provision
of Occupational Health Services commenced in October 2011 as a
shared service agreement between Salford City Council and Salford
Royal Foundation Trust, with both organisations committing resources to achieve
service delivery. The SLA whilst being managed annually has had no
financial review since 2011 and the cost has remained
static.
 
In recent years there have been some significant changes to
the service in particular the formation of the Northern Care
Allowance (NCA), which incorporated Salford Royal Foundation Trust
formally in 2021. In April 2023, following the approval of the
Health & Wellbeing Strategy by the Workforce Panel a review of
the service was undertaken to ensure it was fit for purpose and
able to support the delivery of the wellbeing strategy priorities
and actions, this included the NCA reviewing their charging
structure with the increased costs to be implemented from
1st April 2024.
 
The GM HR Directors’
Collaboration Board was formed to encourage collaboration across
the GM authorities HR and OD functions. The economies of scale
achieved by a collaborative procurement approach is a vital element
in the provision of efficient, cost-effective services, especially
at a time where financial pressures continue to create great
challenges within local government. All the collaborative contracts
are procured by a host authority and managed by the central
contracts team. The host acts in accordance with standards of good
practice and, under the direction of the HR Directors’ Board;
representing the best interests of the partners in any discussions
or negotiations with suppliers.
 
The contract for the provision
of Occupational Health Services is one of those services. The
service is provided by Optima and is already on a GM framework
which allows Salford to draw down on those services at any time. It
is an established provider and operates a value for money service.
It offers resilience as a Greater Manchester managed service and
can offer competitive rates due to the power of the collaborative
purchasing.
 
The Council will utilise the GM
Contract for the following services:
·        
Pre employment Health Checks (volume circa 840 per
annum)
ØPre employment checks for
teachers is part of the terms and conditions of employment, failure
to carry these out would prevent a new teacher commencing
employment.
 
·        
Management referrals (volume
circa 800 per annum)
ØManagement referrals are
integral to the support provided to employees who are away from
work due to ill health helping them to return to work or remain in
work.
 
·        
Ill Health retirement assessments (volume circa 40
per annum)
ØFailure to provide these
services would mean the Council would be in breach of GMPF
Regulations and the requirement to allow employees the option to
access Ill Health Retirement.
 
·        
Immunisation and vaccination’s (volume circa
60 per annum)
ØThe option to offer
immunisations and vaccinations to members of the workforce who
could be subjected to diseases due to the nature of the work is a
key part of ensuring the wellbeing of our employees.
 
Assessment of Risk
– High:
The authority as an employer
would be without occupational health services which would be a
detriment to employees who are experiencing challenges with
remaining at work or returning to work. Managers would be unable to
fully exercise their duties under the Management of Employee
Absence Policy. We would also be failing to meet our obligations
under the Health & Safety at Work Act (1974) and could risk
being fined.
 
The
source of funding is:
The Budget that will meet the
cost of the scheme P0502 5714.
 
Legal
Advice obtained:
When
commissioning contracts for the procurement of goods, services or
the execution of works, the Council must comply with the
requirements of the Public Contracts Regulations 2015 (PCR) and its
own Contractual Standing Orders (CSO’s) failing which the
decision may be subject to legal challenge from an aggrieved
provider.
 
Following various options being considered for the future
delivery of the service (set out in the body of the report), the
proposal is to approve the Council joining of the Greater
Manchester Occupational Health Collaboration service via the use of
a beneficiary agreement with Oldham Council (who are the
contracting authority with the provider). Legal Services will
review its terms is instructed to ensure any risks to the Council
are identified.
 
The collaborative
arrangement was set up by Oldham MBC on behalf of the other GM
LA’s to ensure economy of scale and best value, and they will
remain to be the responsible contracting authority, and the
collaborative contract requires the Council to sign up for a
minimum 2 years with the option to opt out at the 2-year stage or
to enact an extension(s) of two more periods of 12 months. The
contract would be monitored closely in the first 2 years to ensure
compliance with KPI’s and is a necessary service to ensure
that the Council has a satisfactory OHU service, without which it
would be failing to meet statutory obligations under the Health
& Safety at Work Act (1974) and could risk financial
penalty.
 
Financial Advice obtained:
It has been confirmed that the
£92,000 costs will be funded from the planned 24/25
Occupational Health revenue budget of £350,000 (Expenditure
Code: P0502
5714).
 
Procurement Advice obtained:
Oldham MBC, on behalf of all participating authorities, has
undertaken a procurement activity in relation to this project on
behalf of all GM Councils. There is evidence this has been carried
out in a fair, open and transparent manner in compliance with
Public Contracts Regulations.
 
Salford City Council was named as a potential participant in
this tender.
 
This
report is seeking permission to join the collaborative
arrangement. 
 
HR
Advice obtained:
The authority as an employer
would be without occupational health services which would be a
detriment to employees who are experiencing challenges with
remaining at work or returning to work. Managers would be unable to
fully exercise their duties under the Management of Employee
Absence Policy. We would also be failing to meet our obligations
under the Health & Safety at Work Act (1974) and could risk
being fined.
 
Climate Change Implications
obtained: N/A
 
The following documents have
been used to assist the decision process: N/A
 
Contact Officer: Steve Hulme
Telephone number: 07591 352457
 
Please delete from the bullets
below any which are not relevant:
·     
The Lead Member has been consulted and is supportive
of the proposed contract.
·     
The appropriate Scrutiny Committee to call-in the
decision is the ?
 

Signed:     Cllr J
Youd                    
Dated:     28 February
2024.
           
    Lead Member
 

FOR DEMOCRATIC SERVICES USE
ONLY
 
*          
This decision was published on 28 February 2024
*          
This decision will come in force at 4.00 p.m. on 6 March 2024
unless it is called-in in accordance with the Decision-Making
Process Rules.