Decision details

The contracts are managed by the Place Department on behalf of the ASCH Department for eligible service users.  All five contracts provide access to ASCH day service establishments and these centres are the subject of current public consultations for proposed closure. The proposals are subject to public feedback and Cabinet consideration of options.  Therefore, in order not to de-stabilise the consultation process or disadvantage current service users, these contracts require immediate action to secure extension periods.

This is an exceptional circumstance due to the live consultation period which coincides with the termination or imminent termination dates of all five contracts.  Until the outcome of the consultation exercise is known, ASCH is unclear about future commissioning arrangements for provision of transport to Council operated day services.

Option 1: The contracts which are due to terminate could be re-tendered by Place, but this may be construed as disingenuous to the supplier market, as currently, ASCH does not know the outcome of the consultation and what future commissioning arrangements may be required.  If the Council were to re-tender the five contracts on a like for like basis now, operators will bid and if successful, may commit to longer term financial liabilities, such as vehicle lease arrangements over several years.  If, after the outcome of the consultation, it is determined that the newly awarded contracts are not required or need significant variation, the Council may face a potential legal challenge or reputational damage about being aware of such potential changes or termination and not being transparent or fair to the supplier market.  In such a scenario, it could be envisaged that operators may be seeking financial compensation from the Council for loss of income.  This option is not a recommended.

Option 2: The contracts could end at their natural expiry date without any re-tendering taking place to replace them.  As well as leading to day care participants being without access to day services, it could also be construed as predicting the outcomes of the public consultation and not continuing to provide services. This would cause harm and distress to day care participants and their families during the consultation period, as well as exposing the Council to significant reputational damage and potential costs.  This option is not a recommended.

Option 3: The preferred option is to extend each of the five contracts at the point in time when they reach their expiry date, for a period of up to 12 months on the same terms and conditions and for the same day car participants.  This will allow for continuity of service delivery as well as allow time for the Council to evaluate the consultation feedback and propose the future delivery model of day services.  This option is recommended.