Decision Maker:

Outcome: Implemented

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: September 1, 2025

Purpose:

Content: RESOLVED:   1.  To approves the recommendation to join the Adaptations, Repairs, Maintenance and Improvements (ARMI) DPS for the purpose of selecting contractors to deliver home adaptations funded by the DFG for our disabled residents. Commencing on 1 October 2025, up to £7,621,000 (£6,621,000 plus up to £1,000,000 to cover potential increases in DFG allocations over the contract period) of DFG grant will be allocated via the DPS over the proposed 3 year 1 month and 11 day contract period (the existing ARMI DPS will finish on 11 November 2028).    2.  To note there is no charge to join the DPS but a 1% fee (plus VAT) will be added to the cost of the adaptation being processed which will be taken from the DFG allocation.   Reasons For Decision   A pilot project was completed in which the DPS was used to complete 9 pilot cases. The trial demonstrated that the relevant procurement stages could be carried out within the expected timeframes. For example, each of the 9 pilot cases went from ‘Request for Approval Submitted’ to ‘Application Approved’ in 3-6 working days which was within the target completion time of two weeks.    The trial also confirmed that the DPS was compatible with all procedural requirements and expected working practices within the DFG Home Adaptations service. All stages in the process were successfully completed working with the DPS.    Further detail on the findings from trial is available in Appendix B (Exempt).   The ARMI DPS was originally created by Plymouth Council via a compliant procurement process that included an OJEU advertisement. It is currently already used by a number of London Boroughs including Newham, Redbridge, Barking & Dagenham.   Table 1 below provides a comprehensive summary of the advantages and disadvantages of joining the DPS which have informed the recommendation of this report.   Advantage   Disadvantages No annual fee The initial set up will be time consuming and a lot of additional work e.g. setting up cases and management oversight.   1% fee + VAT per adaptation cost which is  paid via the DFG.  This provides a cost saving and value for money compared to the outsourced HIA fee of 15% + VAT Contractors may not bid for very complex cases such as extensions (which are rare in Hackney). So we may still be required in exceptional circumstances to go outside of the DPS.   The DPS includes a Schedule of Rates (SOR). This allows for quotes to be provided more quickly based on standardised prices which reduces the overall time to deliver adaptations Use of the DPS provides access to a large number of potential suppliers but it does not guarantee a competitive procurement process.   The intention is to encourage local providers to join the DPS in order to increase the potential for competition.   The finding from the 9 case trial was that use of the DPS increased competition with a greater range of suppliers than would have been the case under the previous system (including two completely new suppliers that had not previously been used).   The DPS is a fully electronic online system which has been successfully tried and tested.  This provides transparency and accountability when processing DFG applications Maintaining a DPS is a greater administrative burden than traditional frameworks but this is a burden for the administrators of the DPS rather than Hackney. Safety checks are completed to ensure the contractors are reputable including through the government Trust Mark Scheme and via customer feedback.   The DPS is supported by the department of health and social care in partnership with Foundations, the UK governing body for DFGs.  This is reflected in DFG Good Practice Guidance, under subheading heading 'Tendering Procedures’   www.gov.uk/government/publications/disabled-facilities-grant-dfg-delivery-guidance-for-local-authorities-in-england   KPI are applied that allows the progression of the adaptation stage to be monitored   The DPS is an open market system which allows any contractor to apply at any time including local businesses   The DPS provides transparency on contractor capacity, allowing the DFG Home Adaptations Service to select bids not only on cost but also on wait times.   DPS has a system built in to record resident and housing association contributions and where applicable variation costs. This system provides transparency and is auditable   DPS approach ensures fair competition between contractors   The DFG Home Adaptations Service can have instant and direct communication with contractors via the DPS system eliminating a middle person/service.   The DFG Home Adaptations Service are able to upload documents e.g. OT specs, photos, drawings to allow contractors to bid for work and provide quotes   The DFG Home Adaptations Service will have greater control on reviewing quotes and additional works the contractors add (variations) with the ability to reject or accept.   The DPS can still be used by residents to self fund adaptations who have been assessed as ineligible for a grant.   The DPS provides greater flexibility including the option to allow residents to source their own contractor pending contractor scrutiny   The DPS embeds compliance with relevant regulations e.g. Construction Design and Management (CDM) Regulations 2015  and the Consumer rights Act 2015   DPS has a 2 year backed warranty insurance in situations where contractors go bankrupt allowing DPS to send another contractor out to repair an adaptation that is under warranty   INCIC offers support free of charge. This has been evident through the DPS trial (Appendix B - Exempt)   The DPS embeds regulations including health and safety elements which eliminates the need for the Council to explore these independently.  This saves the council time and resources in the long term.   The DPS remains open throughout its contract duration for the admission of new contractors who satisfy the selection criteria e.g. contractors signed up to the governments TrustMark scheme creating flexibility and choice   The DPS has built in KPIs to ensure a robust monitoring system.   The DPS encourages contractors to quote based on quality products otherwise contractors can be easily removed and unlikely to get repeat work if workmanship is poor.  This can be captured through the complaints KPI     In summary, the ARMI DPS has a number of advantages. These include, additional functionalities and performance reporting, greater transparency and access to a wider range of contractors to increase competition and value for money, as well as quicker and simpler processes that reduces the time required to complete an adaptation.    Alternative Options Considered and Rejected   1. Do Nothing   The contract with the outsourced HIA is due to end on 30 September 2025.   This means that once the contract expires the Occupational Therapy service can revert back to the previous model and obtain quotes for the recommended adaptations and the DFG Home Adaptations Service will have to approach the contractor directly to carry out the works.  This will be both time consuming and reduce competition.   The doing nothing option will also mean that Hackney would miss out on all the benefits of the DPS as described under Table 1.   2. Make Use of the Council’s Existing Stock Adaptation Framework   The Council’s Stock Adaptation Team has an existing framework which is used for adaptation works for Council own properties. Consideration was given to using this framework for DFG related adaptation work. However, there were a number of disadvantages with this approach:   ·  Not an open system, new contractors cannot join ·  The framework contract is with the council and not the resident ·  There is no flexibility to allow residents to source their own contractor, which is an option under the DFG rules ·  The contractors cannot be easily removed if a contractor performs badly ·  There is no opportunity to see contractor capacity directly from a procurement system, therefore capacity will need to be monitored directly with the contractor ·  The framework approach does not provide a system to see DFG case progression before starting the contractor selection process. This is important as DFG has key stages such as ‘ready for approval, funding approved’ ·  There is no option for residents to pursue their preferred adaptations by adding their own funds. (Preferred adaptations only agreed if it is in line with the OT recommendation) ·  The framework contract limits flexibility therefore doesn’t allow resident or housing association to make contribution ·  No contractor competition ·  Adaptations may take longer if there are only a few contractors on the Framework. Additionally this will limit the performance and delivery of adaptations due to contractor capacity   Council Stock Adaptation Framework doesn't provide the resident led, flexibility or monitoring functions required to process DFGs.  On this basis, the option of joining the Council Stock Adaptation framework has been ruled out and will not be considered for the new DFG Home Adaptations Service.