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 and award the Contract for Statutory Homeless Supported Temporary Accommodation, as detailed in the table below, and

·      give consent for the Council to enter into a Grant Agreement with GMCA for an allocation of their Supported Housing Programme 2026-2029.

Answers

Title/Description of Contracted Service/Supply/Project

Statutory Homeless Supported Temporary Accommodation

Procurement Reference numbers (DN and CR number supplied by Procurement)

S1329a

Name of Successful Contractor

The Riverside Group

Supplier Registration Number

IP030938

Supplier Identifier Reference

(Central Digital Platform FTS) for awards above £30,000 (inc VAT)

[To be completed by Lead Officer]

Proclass Classification No.

(to be completed by procurement)

[To be completed by Procurement]

Type of organisation

Industrial & Provident Society

Status of Organisation

Non-SME

Contract Value (£)

£ 374,453.33

Total contract value £ (including extensions)

£ 374,453.33

Contract Duration

16 months

Contract Start Date

01/12/2026

Contract End Date

31/03/2028

Optional Extension Period 1

N/A

Optional Extension Period 2

N/A

Contact Officer (Name & number)

Jane Barlow -  jane.barlow@salford.gov.uk 

Lead Service Group

Place

How the contract was procured?

(to be supplied by procurement)

Direct Award/ Call off

Procurement Legislation

Choose an item.

Framework Details (where applicable)

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

Funding Source

Revenue Budget

Ethical Contractor (EC): Mayor’s Employment Charter

Yes

EC: Committed to sign The Mayor’s Employment Charter

N/A

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

N/A

EC: Accredited Living Wage Employer

Yes

EC: Committed to becoming Accredited Living wage Employer

N/A

?

The Reasons are:

Regular contract monitoring and scheme appraisals have provided assurance that the Riverside Group are consistently providing a good service and positive outcomes for clients.

There was the option to extend their contact for a further 2 years within the existing contact ending 30 November 2026, but the organisation could no longer continue delivering services at the existing contract price. We have therefore proposed entering into a 16 month contract as a direct award.

Options considered and rejected were: Going back out to the market.

This option was 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: Gemma Singleton, Senior Accountant

The proposed 16-month direct award to Riverside (SASH), at a cost of £374,453.33, represents a substantial increase compared with the previous annual contract value of £75,122. This increase reflects both the growing complexity of clients accessing the service and the requirement to provide a 24-hour support offer.

The total contract value of £374,453.33 creates a significant budget pressure. Funding for the award will be met through approved Housing and Homelessness budgets for 2026/27 and 2027/28, with additional GMCA funding secured for the same period. These funding arrangements will support delivery of the service throughout the proposed contract term. Any ongoing financial commitment and associated budget pressure beyond 2027/28 will be considered through the Council's Medium Term Financial Plan from 2028/29 onwards.

Despite the increase in contract value, the proposed uplift reflects a combination of increased staffing requirements to support a more complex client cohort, inflationary pressures and the need to maintain safe 24-hour service delivery. The high-level benchmarking undertaken indicates the scheme continues to represent good value for money when assessed on a unit cost basis and against alternative provision.

The proposed increase cannot be accommodated within the existing contract due to procurement regulations. As such, a 16-month direct award under the Procurement Act 2023 is proposed to ensure continuity of service provision.

This approach represents a short-term solution, allowing time to review future service delivery and commissioning options. Any ongoing cost pressures will need to be considered as part of future financial planning.

Legal Advice obtained: Kathryn Saldanha, Commercial Team, Shared Legal Service 06/07/26

The council’s current contract with The Riverside Group (Riverside) was procured in 2021 under the Public Contracts Regulations 2015 (PCR) and the council’s Constitution and Contract Standing Orders (CSOs). Regulation 72 of the PCR sets out the circumstances under which modifications to public contracts can be made without conducting a new procurement procedure. The proposed increase in the value of the contract for the period from 1 December 2026 to 31 March 2028 means that it is not possible for the council to modify its current contract under Regulation 72 of the PCR. As set out in the main body of this report, the multiple and complex needs of the Clients who receive accommodation and support services from Riverside means that there is a shortage of providers who are able to provide schemes with the required wrap around 24-hour support.

The Procurement Act 2023 (PA) and the council’s Constitution and CSOs allow the council to make a direct award of a contract without a competitive tendering procedure under certain circumstances. Under the PA, a transparency notice must be published by the council before a contract is directly awarded. The function of the transparency notice is to inform stakeholders that the council intends to directly award a contract and ensure that there is transparency relating to this decision. It provides an opportunity for interested parties to consider the justification for direct award. Schedule 5 of the PA sets out the “Direct Award Justifications” which allow the council to make a direct award of a contract under Section 41 of the PA. In the case of the council’s direct award of this contract to The Riverside Group for the period from 1 December 2026 to 31 March 2028, the council believes that the “urgency” Direct Award Justification at Schedule 5, Paragraphs 13 and 14 of the PA applies and that:

(a)       the goods, services or works to be supplied under the public contract are strictly necessary for reasons of extreme and unavoidable urgency, and

(b)       as a result the public contract cannot be awarded on the basis of a competitive tendering procedure.

The council believes that the urgency for the direct award of this contract to The Riverside Group is “unavoidable” as in the urgency “is not attributable to any act or omission of” the council, and “could not have been foreseen” by the council.

Rule 9.13 of the council’s CSOs deals with “Exceptions to Competition/Contractual Standing Orders” and allows for exceptions to be made in the following circumstances:

• Special education, health or social care contracts, if, it is considered in the Council’s interests and to meet its obligations under relevant legislation.

• The execution of works or the supply of goods and services that are required so urgently as not to permit compliance with the requirements of competition.

As set out in the main body of this report, the council is only proposing to make a direct award of this contract to The Riverside Group for a 16-month period which will give the council the opportunity to review alternative long-term solutions.

As set out at paragraph 3.0 of the report, at the time that the Council’s current contract with The Riverside Group was awarded there was no requirement for social value targets. The Council has worked with The Riverside Group to identify a range of social value Themes, Outcomes & Measures (TOMS) for the proposed new 16-month contract which will be monitored and recorded by the Council through formal contract meetings with The Riverside Group, rather than through The Social Value Portal.

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

Due to the level of increase requested by Riverside, it would not be appropriate to extend the agreement on the same terms or to rely on the existing framework provisions with an alternative provider. In order to ensure compliance, a UK5 Transparency Notice will be required to set out and justify the rationale for a direct award. Following this approach will ensure that the contract remains compliant with the requirements of the Procurement Act 2023 and the Council’s internal governance processes.

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 Panel.

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 4.00 p.m. on 22 September 2026 unless it is called-in in accordance with the Decision Making Procedure Rules.