Wards Affected: All Wards. ITEM 6 PROCUREMENT & COMMISSIONING 15 DECEMBER 2015 INVITATION TO TENDER PROVISION OF HOUSING RELATED SUPPORT SERVICES FOR VULNERABLE PEOPLE (REF: ASC0016) Responsible Cabinet Members: Councillor Miles, Cabinet Member for Children and School Improvement Councillor Long, Cabinet Member for Health and Wellbeing Report Sponsor: Michael Bracey, Corporate Director, People Author and contact: Mick Hancock, Assistant Director Joint Commissioning, Tel: (01908) 257967 Executive Summary: This report is seeking approval to commence the tender process to procure housing related support services for vulnerable people. This includes 16/17 year olds at risk of homelessness, 16/17 year old Section 17 Children in Need, 16/17 year old Looked After Children (LAC), 16/17 year old unaccompanied asylum seekers, Care Leavers, teenage parents and single people aged over 18 with support needs The contract will be for 5 years with possibility of extension of 2 years subject to satisfactory performance and mutual agreement. The estimated contract value will be in the region of 1.14m per annum with a total contract value of 7.98m over 7 years (5+2). 1. Recommendation(s) 1.1. That a housing related support service for vulnerable people at risk of homelessness in Milton Keynes be procured through a competitive tender. 1.2 That the commencement of a single-stage, open tender process for the procurement of housing related support services to vulnerable people be approved. 2. Background 2.1 The procurement is needed in order to provide housing related support services to vulnerable people. The Service is being provided to assist the Council to discharge its statutory duties to 16/17 year olds at risk of homelessness, 16/17 year old Section 17 15 December 2015 Page 1
Children in Need, LAC 16/17 year olds, 16/17 year old unaccompanied asylum seekers, Care Leavers, teenage parents and vulnerable single homeless people under the following legislation: The Children Act 1989 The Housing Act 1996 and 2002 amendment Leaving Care Act 2000 and 2001 amendment At present housing related support is provided through contracts with St Mungo s Broadway for vulnerable young people and Orbit Housing Association for teenage parents and single people aged over 25 with support needs. St Mungo s has been operating the contract for young people s supported accommodation since July 2012. The Council holds contracts with Orbit for two homeless hostels for single homeless people aged over 25 and a supported housing scheme for teenage mothers and babies. The services provided by Orbit Housing Association have not previously been competitively tendered. Orbit holds contracts with the Council which were initially issued as part of the national Supporting People Programme. Orbit submits monitoring information quarterly to the Joint Commissioning Team and Quality Visits were carried out in July 2015. When the 2015/16 budget was finalised (Council 25 February 2015) it was decided that St Mungo s and Orbit services should be re-commissioned, maintaining the current level of service provision and ensuring that no existing client will be made homeless as a result. As well as maintaining the current level of provision Children s social care has identified a need for additional capacity within the new contract as St Mungo s has had to decline referrals due to no places being available. Children s social care is currently carrying out a sufficiency review which has identified that there is insufficient accommodation with support available in Milton Keynes. In addition to a shortage of places overall Children s social care is unable to place some of the young people they have responsibility for within the St Mungo s provision as the level of support provided on-site, including a lack of overnight cover at two of the projects, is insufficient to meet the level of need. Increased investment will therefore be required in the new contract that will include children s social care requirement to be able to place young people with a high level of need. A range of predominately hostel accommodation will be made available to the successful tenderer and provided by the Council, Orbit Housing Association, Guinness and bpha. All landlords have been consulted and are in agreement with use of their properties subject to a suitably qualified provider of housing related support to the relevant client groups being identified through the tender process. Please see below at paragraph 4.3 15 December 2015 Page 2
Properties to be made available for provision of support services Project Location Current support No. of Landlord provider Places Western Wolverton St Mungo s 7 MKC Road Church St Wolverton St Mungo s 16 Guinness Blackheath Bradwell Common St Mungo s 9 MKC Crescent Windrush Downhead Park St Mungo s 10 Bpha Close Cambridge Bletchley Orbit 16 Orbit Street Springfield Springfield Orbit 15 Orbit Boulevard Mullion Place Fishermead Orbit 20 Orbit Fenny House Bletchley n/a 4 MKC Total no. of people to be supported through 97 contract This report requests authorisation to tender for the provision of housing related support services for vulnerable people. The estimated budget for this will be in the region of 1.14m per annum based on the estimated levels of support required to meet the needs of people where the local authority has a statutory duty to accommodate and support due to age, status or level of vulnerability. The estimated contract value for this will be 7.98m over 7 years (5+2) based on Joint Commissioning, Children Social Care and Finance Analysis. The planned number of staff and support levels need to be higher than in the previous contracts for the service to be effective so the previous contract specifications and budgets no longer apply. Consultation Consultation with existing providers, landlords and key stakeholders has taken place. Service user consultation will be taking place in December 2015. (a) The draft specification will be developed in partnership with the following key stakeholders: Children Social Care - Operational and Commissioning MKC Housing homelessness and landlord Service user representatives Orbit Housing Association bpha Guinness Probation 15 December 2015 Page 3
(b) A review of the current / previous contract identified the following: (i) Lessons learned A greater focus needs to be placed on resettlement for residents and enabling them to move-on in a timely fashion to prevent people getting stuck in supported housing. This needs to include accurate, up-to-date information on housing options. Single homeless and teenage parents in particular need to be able to move-on more quickly than at present. There is insufficient capacity generally in the current contract to meet the needs of the young people where the council has a duty to provide accommodation and support The high / complex level of needs of many young people being referred to the St Mungo s service in particular requires increased levels of support and overnight cover compared to the current contract. (ii) Areas of change / improvement needed Referrals for all of the accommodation in the new contract need to come through MKC Children s social care or Housing Options to ensure that places are made available to people where the Council has a statutory duty. The new contract will focus much more on advising service users from all client groups regarding a realistic range of housing options and working with a range of landlords to support timely move-on from projects. The housing related support for single homeless people with support needs in particular will require greater focus on resettlement and moving-on people in a timely fashion. Higher levels of support including increased overnight cover will be specified as support commissioned at too low a level to meet the clients needs will produce an ineffective service which could lead to the contract not being fully utilised Specification (c) The procurement seeks to deliver the following service objectives: (i) (ii) Prevent immediate homelessness through providing access to accommodation and support to people who are eligible due to age, status or need. Prevent long-term homelessness through enabling people to successfully move-on and maintain settled accommodation. 15 December 2015 Page 4
(iii) Support each person to achieve goals and outcomes in relation to their individual needs for example work, education, money, relationships, physical health, mental health and wellbeing. (d) The specification can be summarised as the provision of housing related support services to up to 97 people at any one time across 8 properties. Accommodation provided by the Council, Orbit Housing Association, bpha and Guinness, and currently used by support providers St Mungo s and Orbit, will be made available as part of the tender with the option that further accommodation can be sourced by the provider to meet the needs of vulnerable young people and Care Leavers. (i) Young People There is a need for suitable supported accommodation due to increased numbers of Care Leavers, Looked After children and homeless 16 and 17 year olds in Milton Keynes. This requires specialist support services that will support and engage young people to develop their independent living skills and support the transition to adulthood and independence whilst ensuring that this vulnerable group are being safeguarded. (ii) Teenage Parents Provision of supported accommodation for 16 and 17 year old teenage parents as well as many older teenage parents who had high support needs or weak support networks is required where remaining in the parental home is not feasible. Accommodation with support provides a valuable stepping stone, with the support provided enabling teenagers to adjust to parenthood and prepare for independent living within a supportive environment. (iii) Single vulnerable homeless Provision of short-term, temporary accommodation for single people who are homeless and have support needs is required. The focus of the service will be linking residents into any specialist services they may require, for example mental health or substance misuse services, and support resettlement into independent accommodation. (e) The tender will invite proposals as to how the contract could benefit the wider community under the Public Services (Social Value) Act 2012 and this has been built into the MEAT Criteria and weighted at 5% of the overall evaluation. 15 December 2015 Page 5
2.2 Evaluation Criteria and Panel (a) The MEAT evaluation of the tender includes the following tender specific requirements, which are listed below: Evaluation areas 2-6 indicate the quality criteria. The minimum threshold to achieve these will be 60% of the points available across these five areas. Area* Evaluation Area Weighting (%) 1 Tender Price 40% 2 Service delivery: including details of the proposed service and how the organisation will deliver an outcomes focussed service which meets the needs of service users and prevents homelessness 3 Expertise, experience, and governance: including skills and knowledge around managing supported accommodation; managing risk; developing and implementing individual support plans; training and development of staff; compliance with legislation and quality standards 4 Service user involvement: including how the organisation meaningfully involves service users in the development and delivery of its services 5 Social value: including how the organisation will deliver, through its supported accommodation and residents, benefits to the Milton Keynes community 6 Equalities and diversity: including how the organisation will promote good relations between people of different backgrounds and seek to ensure fair and equal access, service and opportunities 25% 20% 5% 5% 5% (b) Tenders submitted will be evaluated by a panel comprising of Senior Joint Commissioner (Moderator) Joint Commissioner Commissioning Managers, Children and Families Housing Options Manager Colleagues within Finance and Legal and Corporate Procurement will be engaged to support the tender process. 15 December 2015 Page 6
2.3 Contract Terms and Conditions (a) (b) (c) Tenders will be sought for a contract period starting on 01/10/16 and ending on 30 October 2021. The contract will be for 5 years with possibility of extension for 2 years subject to satisfactory performance and mutual agreement. Upon approval of this recommendation we will liaise with the legal department to prepare suitable Terms and Conditions. 2.4 Project Management (a) (b) The Council s Project Manager for the procurement is Head of Contracts, Commissioning and Contracts Team. The Council s Senior Client Officer for the procurement is Head of Joint Commissioning and for the management of the contract will be Senior Joint Commissioner. 3. Alternative Options 3.1 The following options appraisal has been conducted: (a) (b) (c) (d) (e) Do nothing: The contract would continue to be provided by St Mungo s and Orbit. The current St Mungo s contract does not provide high enough levels of support or sufficient places to meet the needs of Children s Services meet its statutory duties to provide accommodation and support The Council budget decision of 25 February 2015 was that the St Mungo s and Orbit contracts should be re-commissioned. Open (single stage) tender: The contract value meets the EU threshold of 750,000 Euros requiring publication in the European Journal as prescribed by the Public Contracts Regulations 2015 under the Light Touch Regime. The open procedure is preferred due to the specialist nature of the service and the expectation of a small number of bids (Limited number of likely bidders). This is the preferred option. Restricted (two stages): Does not confer any additional benefits to the open tender approach and would lengthen the timescale for tendering Use MKC Framework: not appropriate for supported accommodation where the provider is required to manage properties as well as provide a support service. Externally let Framework: As above (f) Extend current contract. Proposed changes to the specification contract including increasing numbers of staff and levels of support in the projects for young people and increased emphasis on resettlement to achieve improved move-on and higher throughput means that the service re-modelling required is too extensive to be managed through contract variation and extension. 15 December 2015 Page 7
(g) (h) Termination of current contract would remove support services required by vulnerable people to prevent homelessness and enable successful move-on from supported accommodation. The Council has a statutory duty to accommodate and support the vulnerable people served by this contract therefore this is not an option. Award of 5 year contract with the possibility of extension for 2 years (subject to satisfactory performance and mutual agreement) would be preferred given that most of the support services will be accommodation based and any successful provider will have to enter into a range of lease / management agreements with landlords as well as the support contract with the Council. A standard 3 year contract limits the ability of providers to develop services to meet changing needs and invest in providing a good quality environment, for example new furniture and fittings where required. The risk to recouping any investment attached to a 3 year contract is likely to be reflected in more costly bids or a reduced number of bids. 4. Implications 4.1 Policy The procurement seeks to implement the Milton Keynes Joint Health and Wellbeing Strategy 2015-2018 in particular: Starting Well: giving every child the rest Start in life: Reduce homelessness with a focus on family homeless by early identification of those at risk and developing local capacity to provide accommodation (p7). The award of this contract will progress the following priorities/outcomes within the Corporate Plan 2012/16: Develop and maintain effective services and interventions that enable those children and young people who face barriers to participation to successfully overcome them. Develop and maintain effective services and interventions that keep the most vulnerable children and young people safe and prevent them from experiencing additional difficulties. Develop cost effective models of support and care for vulnerable people that ensure they regain and maintain independence. 4.2 Resources and Risk The costs of this contract are met from the Supporting People Service Budget (Revenue) and Children s Service Budget (Revenue). The costs identified within this exercise can be contained within the agreed budget. The Risk Assessment for this contract is available if requested or directly via Members access to GRACE. In summary: (a) The key OPPORTUNITY secured by this contract is provision of accommodation and support for vulnerable people to contribute to the 15 December 2015 Page 8
Council meeting its statutory duties; reducing the number of spot placements and improved use of resources. It is assessed that the delivery of this contract provides a high likelihood that will secure the opportunity defined providing MKC with a high positive Impact. (b) The key THREATS for this contract have been assessed as: Risk Likelihood / Impact Mitigation Likelihood/ Impact after mitigation Cost of support services more than estimated budget due to size of contract and level of variables High Substantial work has been undertaken by children s services and commissioning to estimate support levels required and likely cost of support Medium Unable to identify sufficient suitable accommodation if demand for services increases High All landlords have been consulted and have agreed that support services funded by the council can be provided in their properties as part of the new contract High/ Medium May be a low number of bidders as housing related support contracts have been at risk from budget cuts in recent years Medium MKC to host a market information day for potential providers Contract is focused on meeting needs where Council has a statutory duty rather than discretionary services therefore lower risk Medium/ Low 15 December 2015 Page 9
Risk Likelihood / Impact Mitigation Likelihood/ Impact after mitigation Risk of provider failure Medium/ Low Joint Commissioning has provider failure policy in place and a specific business continuity plan for this contract would be developed postaward Low Contract awarded is too short to be practical given TUPE and need for provider to enter into leases / management agreements with landlords. High 5 year contract with 2 year extension is proposed which gives providers to spread costs and risk over a longer period Medium Increases level of financial risk to providers which may inflate costs / deter bidders Accommodation and housing management costs are included in rent / HB funding stream and will impact on overall income to service. Rents could be an additional cost to referrer if resident not HB eligible. High Tenderers will need to have expertise in managing supported accommodation and using both funding streams to best effect for benefit of residents. Medium 15 December 2015 Page 10
Risk Likelihood / Impact Mitigation Likelihood/ Impact after mitigation Children Services unable to place young people with high needs so investment in contract does not realise any savings against spot purchase placements. High Sufficiently high level of support and provider experience/ expertise specified to support young people with high needs. Prioritisation of referrals though Joint Housing and CSC referral panel Medium The governance measures set out in 2.5 above provide a basis to conclude that these threats, properly managed represent a LOW likelihood with a / MEDIUM Impact. N Capital Y Revenue Y Accommodation N IT N Medium Term Plan N Asset Management 4.3 Carbon and Energy Management There are no Carbon and Energy Management considerations relevant to this contract. Legal The tender will enable the Council to meet its statutory obligations to provide supported accommodation for vulnerable children and adults under The Housing Act 1996 & 2002 Amendment, The Leaving Care Act 2000 & 2001 Amendment and The Children Act 1989. The services subject to this report fall under the light touch regime of the Public Contracts Regulations 2015. The value of the contract over term is estimated at 7.98m which is above the EU threshold and therefore requiring advertisement to the European Union Market. The preferred procedure, corresponding to the open procedure without variation, is sufficient to ensure compliance with principles of transparency and equal treatment of economic operators. 15 December 2015 Page 11
The price element of the proposed tender is 40% which meets the requirements of the Council s contract procedure rules. This report seeks approval to commence tender in line with the Council s contract procedure rules which requires that Procurement and Commissioning Committee must approve commencement of all tenders for contracts with an estimated value of 100,000. Transition and storage of personal information between the Council and Provider will comply with the Council s Information Sharing Policy and the requirements of the Data Protection Act. The owners of the properties intended for use are not contractually committed to allow their premises to be used for the contract and it is recommended that they should be. Before the Council commits to their use the titles to the relevant properties ought to be checked to ensure there is nothing which prevents them being used for the intended contract, including covenants on title and planning consent this also applies to the properties owned by the Council. It is also recommended that the Council check the terms of the leases of its properties to St Mungo s at Western Road, Wolverton and Blackheath Crescent, Bradwell Common to see whether St Mungo s can be required to give up their leases when the premises are required by a new provider. 4.4 Other Implications Y* Equalities/Diversity N Sustainability N Human Rights N E-Government Y** Stakeholders Y*** Crime and Disorder N Carbon and Energy Policy *It is recommended to continue with the decision as the contract targets resources on vulnerable homeless people where the council has a duty and will improve the level of support with the intended positive impact on outcomes. The full Equality Impact Assessment can be viewed at: **Key stakeholders as detailed in report are in agreement with tender proposal ***Ex-offenders including people being released from prison may be eligible for single homeless with support needs places. Prevention of homelessness and effective resettlement reduced the likelihood of reoffending. Background Papers: Draft Specification 15 December 2015 Page 12