The Cabinet Member Signing meeting on Tuesday 18 June 2024 was scheduled to consider a key decision regarding a contract variation. The primary item for discussion was a proposed increase to the contract value for the provision of temporary agency workers.

Contract Variation - Matrix

The meeting was scheduled to consider a report recommending a variation to the contract with Matrix, a provider of temporary agency workers. The proposed variation would increase the contract value by up to £32,504,910, bringing the total contract value to £162,000,000. This increase was presented as necessary to ensure the Council could continue to access short-term agency and interim workers, and to support the permanent agency supply chain where required.

The report indicated that the original contract value, agreed in November 2020, had been exceeded due to unforeseen circumstances such as the Covid-19 pandemic, job market challenges, and Brexit, which led to an increased reliance on agency staff. The report also highlighted ongoing efforts by the Chief Executive and Corporate Leadership Team to reduce overall agency spend, with targets set for Directorates to achieve reductions.

The report noted that the current contract runs until July 2025, and the proposed increase was intended to cover the remaining duration. It was also mentioned that a new agency staff contract would be procured in the latter half of 2024 and the first half of 2025. The report stated that the proposed variation was compliant with the Public Contract Regulations 2015¹ and the Council's Contract Standing Orders².

Alternative options considered included not extending the contract value, which was discounted due to potential cost increases and reduced corporate control, and re-procuring a different contract, which was deemed to cause unnecessary disruption.

The report also included comments from statutory officers, including the Chief Finance Officer, who noted the significant reliance on agency staff as a pressure on the Council's finances, and the Assistant Director for Legal and Governance, who confirmed no legal obstacles to the variation. The report also addressed the Public Sector Equality Duty³, stating that the Matrix contract includes commitments to follow equality legislation and that the variation would continue to support the Council's inclusion and diversity agenda.