Decision

Salford City Council – Record of Decision

I Councillor Cusack, Lead Member for Corporate Services and Chairman of the Procurement Board, accept the recommendation of the Procurement Board and in exercise of the powers contained within the Council Constitution do hereby:

·      approve the extension of Contract for Statutory Homeless Supported Temporary Accommodation and award, as detailed in the table below:

Detail required

Answers

Contract Reference

(to be supplied by procurement)

S1329

Title/Description of Contracted Service/Supply/Project

Statutory Homeless Supported Temporary Accommodation

Name of Contractor

Salvation Army Housing Association

Type of organisation

(to be supplied by Procurement)

Other

Status of Organisation

(to be supplied by CoProcurement)

Non-SME

Value of Contract Extension (£)

£          288,451.96

Total value of Awarded (including extension period)

£          774,800.11

Existing Contract Term

01/12/2021 to 30/11/2026

Extension Period

01/12/2026 to 30/11/2028

Contact Officer (Name & number)

Jane Barlow 0161 793 2372

Lead Service Group

Place

Funding Source

Revenue Budget

Ethical Contractor (EC): Mayor’s Employment Charter

Yes

EC: Committed to sign the Mayor’s Employment Charter

Yes

EC: Committed to the principles outlined in the Mayor’s Employment Charter

Yes

EC: Accredited Living Wage Employer

Yes

EC: Committed to becoming Accredited Living wage Employer

No

The reasons are:

Regular contract monitoring and scheme appraisals have provided assurance that the Salvation Army Housing Association are consistently providing a good service and positive outcomes for clients.

There is the option to extend their contact for a further 2-years within the existing contact.

Despite an increase in contract cost, the scheme would still offer significant value for money comparing favourably to regional benchmarks or alternate temporary accommodation options.

Options considered and rejected were: Not offering a 2-year contract extension and going back out to the market.

These option were not pursued as the scheme offers a favourable cost per bed space per night with 24/7 support. The scheme would also be attractive to other local authorities should the council choose not to utilise the service.

Assessment of risk: High

Lack of appropriate accommodation in which to place clients on a temporary basis from homeless backgrounds with multiple complex needs, requiring a higher level of support.

Innovate/ Best Value – identify the relevant corporate priorities specific to Salford:

·      A good home for all.

·      Tacking poverty and inequality.

·      Healthy lives and quality care for all.

The source of funding and financial advice obtained: by: Alison Phillips, Commercial Finance Manager

The proposed two?year extension of the Abbott Lodge contract, at a cost of £288,451.96, is affordable within existing approved Housing and Homelessness revenue budgets and represents good value for money at this time. Although the benchmarking undertaken is high level, it indicates that the service provides 24?hour complex?needs support at a lower unit cost than comparable North West schemes, while avoiding significantly higher costs associated with nightly?paid temporary accommodation.

Approving a two?year extension will allow the Council to avoid the financial and market risks of re?procuring at a point when provider capacity is noted as limited and support costs are rising. The proposed uplift reflects inflationary pressures and supports additional management capacity to reduce safeguarding and operational risks linked to increasing client complexity. Not opting to extend the contract would expose the Council to higher accommodation costs. The proposed extension is therefore a time?limited and cost?effective solution, to allow further work during the extension period to assess longer?term need and commissioning options.

The proposed contract extension results in total expenditure of £112,094 in 2026/27, £143,488 in 2027/28, and £98,528 in 2028/29 (covering the period 1 April to 30 November 2028), compared with an original approved revenue budget of £94,888 per annum. This results in a total additional budget pressure across the 3 financial years of £69,445. However, the scheme benefits from £51,772 per annum of legacy Supporting People revenue funding to offset the contractual expenditure. Any budget shortfall for 2028/29 beyond the November contract end date, will need to be addressed through the Council’s medium?term financial planning, alongside consideration of any additional costs that may arise from future re?procurement.

The contract extension will be funded from approved Housing and Homelessness revenue budgets for 2026/27 to 2027/28, supported by a balance of legacy Supporting People funding allocated to Abbott Lodge as part of the original Lot 3 procurement exercise.

Legal advice obtained: Kathryn Saldanha, Commercial Legal Team, The Shared Legal Service

The Council’s Contract for Services with the Salvation Army in respect of Abbott Lodge (the Abbott Lodge Contract) was awarded following an open tender process which complied with the provisions of the Public Contracts Regulations 2015 (PCR 2015) as well as the Council’s own Contractual Standing Orders.

The Abbott Lodge Contract was for an initial five-year term, with an option for the Council to extend the Abbott Lodge Contract for a further two years from 01/12/2026 to 30/11/2028.

As set out at paragraph 4.0 of the report, Abbott Lodge is an established supported housing scheme which provides wraparound 24 hour support for those with a high level of complex needs. The Abbott Lodge supported housing scheme has been meeting the needs of the Council successfully for several years and the Salvation Army has established themselves as a valued delivery partner. The Council therefore wishes to exercise its option to extend the Abbott Lodge Contract until 30/11/2028.

As set out at paragraph 4.0 of the report the Salvation Army cannot continue to deliver the Abbott Lodge Contract at the original agreed price whilst maintaining a longer-term viable scheme. The original approved revenue budget for the Abbott Lodge Contract was £94,888 per annum. As set out in the Financial Implications below, the Council is seeking approval for the following increases to the original approved revenue budget:

·      Total Expenditure of £112,094 in 2026/27, £143,488 in 2027/28, and £98,528 in 2028/29 (covering the period 1 April to 30 November 2028).

This means that there will be an increase in the total price of the Abbott Lodge Contract of £69,445 across these 3 financial years.

As set out at paragraph 4.0 of the report, at the time the Abbott Lodge Contract was procured there was no requirement for social value targets. The Council has since worked with the Salvation Army to identify a range of social value Themes, Outcomes & Measures (TOMS) for the proposed contract extension period which will be monitored and recorded by the Council through formal contract meetings with the Salvation Army, rather than through The Social Value Portal.

Regulation 72 of the PCR 2015 sets out the circumstances in which contracts may be modified without a new procurement procedure. In the case of the increase in the total price of the Abbott Lodge Contract of £69,445 to cover the increased costs of meeting the changing nature of client’s needs, the conditions set out at Regulation 72(1)(c) of the PCR 2015 appear to be met.

Procurement advice obtained: Daniel Cunliffe, Category Manager, 0161 686 6249

The current framework agreement includes an option to extend. In light of increased costs, it is permissible under the Public Contracts Regulations 2015 to vary the contract value by up to 50%, subject to the relevant provisions. I am satisfied that any proposed extension will be undertaken in compliance with the PCR 2015 and will align with Salford City Council’s internal governance requirements.

HR advice obtained: N/A.

Climate change implications obtained: N/A.

Contact details:

·      Contact Officer: Jane Barlow

·      Telephone number: 0161 793 2372

Please delete from the bullets below any which are not relevant:

·      This matter is also subject to consider by the Lead Member for Housing and Anti-Poverty. The Lead Member has been consulted and is supportive of the proposed contract.

·      The appropriate Scrutiny Committee to call-in the decision is the Growth and Prosperity.

Signed:   Cllr Cusack          Dated:    14 September 2026.

               Lead Member

FOR DEMOCRATIC SERVICES USE ONLY:

• This decision was published on 15 September 2026.
• This decision will come in force at 4pm on 22 September 2026 unless it is called-in in accordance with the Decision Making Procedure Rules.