Decision Maker:

Outcome:

Is Key Decision?: No

Is Callable In?: Yes

Date of Decision: February 10, 2025

Purpose:

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.