Decision Maker: Cabinet Procurement and Insourcing Committee

Outcome: Abandoned

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: February 2, 2026

Purpose:

Content: RESOLVED:   1.  To approve the establishment of a 9 lot framework for the Provision of Healthcare related Substance Use Services, and award a space on the framework to seven Providers, for Lots 1, 2, 4, 5, 6, 7, 8, 9 and 10,  for a maximum period of four years (2+1+1 years), to start on 1st April 2026, at a cost of up to £11,155,000. 2.  To approve the establishment of a 7 lot open framework for the Provision of Non-Healthcare related Substance Use Services, and award a space on the framework to three Providers, for Lots 1, 2, 4 and 6 for a maximum period of four years (2+1+1 years), to start on 1st April 2026, at a cost of up to £4,905,000. 3.  To note that the lots for which no providers were appointed will be readvertised at a later stage.   An anonymised list of the providers recommended for appointment to each of the contract lots is provided as Appendix 1.   Reasons For Decision    This report provides the Cabinet Procurement and Insourcing Committee with the outcome of the procurement of a framework for Healthcare related Substance Use Services, as well as the outcome of the procurement of an open framework for Non-healthcare related Substance Use Services.   Previously, Single Tender Actions (STA’s) were used to award funding to individual substance use service providers. This was necessary owing to the short timescales between grant funding confirmation and the window of time in which the money must be spent. However, this approach was resource intensive and meant that we lost the potential benefits of a competitive procurement process.   The framework period of up to four years (2+1+1) allows for learning from the initial round of contracts awarded via the framework to inform the call off process in subsequent years.   To date, grant funding has been confirmed by the government on an annual basis with very little time to coordinate the procurement of new services prior to each new financial year. This necessitates a system that allows rapid allocation of grant funding to a potentially very wide range of providers, based on the circumstances in a given year, and that ensures procedural compliance. Frameworks will allow contracts to be awarded in a timely manner that aligns with the requirements of the national grant funding.   The services provided as part of both frameworks aim to achieve the following:   ·  Reduce the harms of drugs and alcohol throughout the communities of the City of London and London Borough of Hackney. ·  A City and Hackney where all individuals who use drugs and alcohol in harmful ways are able to access relevant support to meet their support needs. ·  A City and Hackney where services work effectively together to meet the needs of people who use drugs and alcohol in harmful ways. ·  Early identification of the risk of harmful drugs and alcohol to help ensure that escalating needs can be prevented and addressed. ·  A City and Hackney where the impacts of drugs and alcohol on our communities are reduced.   The outcomes the services are expected to achieve include:   ·  Increases in resident access to substance use services. ·  Increase in adherence to treatment and support services. ·  Increase in positive outcomes for individuals accessing services. ·  Reduction in unmet need across all drug groups used across the authority areas. ·  Equitable outcomes for individuals regardless of ethnicity, gender, sexuality or health related needs. ·  Reduction in drug and alcohol related criminality, including trigger offences, across both authority areas. ·  Increased cohesion between support services to allow for better outcomes for multiple disadvantaged individuals. ·  Reduction in drug and alcohol related death and health needs within both authority areas   Alternative Options Considered and Rejected   The options considered and rejected for this procurement included:   Option 1: End the current services on the scheduled end date of 31st March 2026 and do not reprocure new services Option 2: To award individual contracts to providers Option 3: Wrap grant funding into the core substance misuse service via a variation Option 4: Insourcing