Decision details
Leader's Urgent Decision - Report Requesting Extensions To Two Catering Contracts Serving Schools Meals In Primary And Secondary Schools Across H&F
PDF 120 KBDecision Maker: Leader of the Council
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Purpose:
Schools Meals Contract Extension Report - Lot 1 (Primary and Nurseries) and Lot 2 (Secondary).
Reasons for urgency:
School Meals are an essential front-line service used by children and young people in the London Borough of Hammersmith & Fulham (H&F) which ensures that school aged children eat at least one nutritionally balanced meal each day. Free school meals are a statutory Local Authority duty. This report seeks an Urgent Leader’s Decision to enable contracts to be extended and critical services maintained beyond June 2019.
Following an initial period of consultation with Headteachers and School Business Managers towards the end of 2018, mixed feedback was received in relation to service performance for some schools which required analysis and additional consultation to understand and develop responses to. In addition to this, there has been ongoing financial stability issues for one provider with the parent company recently going into administration. This has been the subject of close financial monitoring. The situation is further complicated by potential supply chain risks relating to Brexit.
Decision:
It is recommended that the Leader of the Council approves:
1. A contract extension of 13 months to the current Lot 1 provider, Interserve Catering Services Limited up until 31st July 2020, (the end of the 2019/20 academic year) at an overall annual contract value of £2.8 million[1].
2. A contract extension of 13 months to the current Lot 2 provider, Cater Link Limited up until 31st July 2020, (the end of the 2019/20 academic year) at an overall annual contract value of £440,000[2], with approval to extend for the final 11 months as set out in the contract, if required.
3. Payments to the following five maintained schools for the top-up meals funding as detailed in the finance section of this report for the 2016/17, 2017/18 and 2018/19 financial years totalling £225,000 and as set out in the table below:
|
School |
16/17 (£000) |
17/18 (£000) |
18/19 (£000) |
Total (£000) |
Funding Source DSG – (Dedicated Schools Grant) |
|
Bayonne Nursery School |
11 |
11 |
11 |
33 |
Early Years DSG |
|
James Lee Nursery School |
11 |
11 |
11 |
33 |
Early Years DSG |
|
Vanessa Nursery School |
|
27 |
27 |
54 |
Early Years DSG |
|
Randolph Beresford Nursery School |
|
25 |
25 |
50 |
Early Years DSG |
|
Jack Tizard School |
|
27.5 |
27.5 |
55 |
Central Services DSG |
|
Total: (£000) |
22 |
101.5 |
101.5 |
225 |
|
4. Provision to make top up funding payments for the 2019/20 financial year for the following four maintained nurseries subject to:
· School Forum approval and agreement.
· Agreement with schools over total schools’ budgets 19/20.
|
School |
19/20 (£000) |
Funding Source DSG – (Dedicated Schools Grant) |
|
Bayonne Nursery School |
11 |
Early Years DSG |
|
James Lee Nursery School |
11 |
Early Years DSG |
|
Vanessa Nursery School |
27 |
Early Years DSG |
|
Randolph Beresford Nursery School |
25 |
Early Years DSG |
|
Total: (£000) |
74 |
|
5. Payment to Interserve Catering Services Limited for Adult School Meals at £70,000[3] per annum for the 2019/20 financial year only. Further detail on Adult School Meals funding is provided at appendix C.
6. That the Authority make initial payments for the increase in LGPS Employer Pension Contribution Liabilities to each provider as detailed in the contract and then recharges these amounts to the relevant schools. Specific amounts and estimates are provided at section 12 of this report.
[1] The contract costs are borne by the School Delegated budgets and not Local Authority budgets except for the specific contributions referenced in 2.3 and 2.5. The contract costs are subject to variation in view of fluctuating meal volumes and contractual indexation increases.
[2] The contract costs are borne by the School Delegated budgets and not Local Authority budgets except for the specific contributions referenced in 2.3 and 2.5. The contract costs are subject to variation in view of fluctuating meal volumes and contractual indexation increases.
[3] These charges are subject to variation in view of fluctuating meal volumes
Reasons for the decision:
As described in the report.
Alternative options considered:
As described in the report.
Urgent item?: Yes
Publication date: 16/05/2019
Date of decision: 15/05/2019
Effective from: 21/05/2019
Accompanying Documents: