Decision details

Direct award of the contracts for mental health supported housing services

Decision Maker: Cabinet Member for Health and Adult Social Care

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes


Direct awards for five contracts to deliver supported living services for residents with serious mental health issues.


1.    To approve that Appendix 1 of this his report is not for publication on the basis that it contains information relating to the financial or business affairs of any particular person (including the authority holding that information) as set out in paragraph 3 of Schedule 12A of the Local Government Act 1972 (as amended).

2.    To approve the direct award of five interim contracts to continue provision by the incumbent providers for a period of 12 months with an option for plus six months at a maximum cost of £2,706,404, ­­­­as set out in Table 1 and Table 2.


Reasons for the decision:

The contracts all expire on 31 March 2022. A procurement strategy covering the future proposals for the contracts will be taken to Cabinet at the latest in March 2023.

The direct award of five contracts will:

·      Enable service continuity to residents while: the new service model is developed with residents; the pathway is reconfigured, and new contract arrangements are put in place;

·      Allow time to mitigate against the disruption of access to mental health services due to Covid-19;

·      Allow time for meaningful co-production and recommissioning.

Alternative options considered:

Option 1 – Allow the contracts to expire on 31 March 2022

This option is not viable as there will be a gap before new services are in place for residents.This option is likely to increase the demand for more intensive health and social care services and could jeopardise the future availability of essential buildings not owned by the Council. For these reasons this option is not recommended

Option 2 – Undertake a procurement of short-term interim contracts

There is insufficient time to undertake a procurement of short-term contracts before 31 March 2022. This option would also detract resources from the procurement of longer-term contracts. The existing contracts are delivering good value for money and good quality services. For these reasons this option is not recommended.

Option 3 - Directly award five interim contracts to the incumbent providers

The direct award of five interim contracts as set out in Table 1 and Table 2 above will enable service continuity to residents while a new service model based on resident need is coproduced and the pathway is reconfigured. For this reason, this option is recommended.


Publication date: 28/03/2022

Date of decision: 25/03/2022

Effective from: 31/03/2022

Accompanying Documents: