Agenda, decisions and minutes

Members are invited to consider the guidance which accompanies this agenda and make declarations as appropriate.

2.1  Councillor Chapman informed the Committee and it was recorded that Kings Hall Leisure Centre at item 11 of the agenda was in his Homerton Ward.

The Chair will consider the admission of any late items of Urgent Unrestricted Business which will be considered under the agenda item where they appear.

3.1 There was no urgent business to consider.

On occasions part of the Cabinet Procurement and Insourcing Committee meeting may be held in private and will not be open to the public if an item is being considered that is likely to lead to the disclosure of exempt or confidential information. This is in accordance with the Local (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 (the “Regulations”),.

This agenda contains exempt items as set out following the Exclusion of Press and Public agenda Item.

No representations with regard to these have been received.

This is the formal 5 clear day notice under the Regulations to confirm that this Cabinet Procurement and Insourcing Committee meeting will be partly held in private for the reasons set out in this Agenda.  Information) (England) Regulations 2012 (the “Regulations”), members of the public can make representations about why that part of the meeting should be open to the public.

4.1 There were no representations to consider.

At the time of the agenda publication none have been received.

5.1 There were no deputations, petitions or questions to consider

To confirm the unrestricted minutes of the previous meeting of Cabinet Procurement and Insourcing Committee(CPIC)  held on 3 July 2023.

RESOLVED

That the unrestricted minutes of the Cabinet Procurement and Insourcing

Committee held on 3 July 2023 be agreed as a true and accurate record of proceedings.

RESOLVED:

To award an extension to the contract with Millbrook Healthcare Limited for the delivery of the Hackney Integrated Telecare Service, for a period of 18-months + 6-months + 6-months options to extend; full 30-month contract extension period 26 February 2023 to 25 August 2025. The total projected contract value for the full period is c.£2,080k. This includes an estimated c.£204k cost of equipment that will be reimbursed by health partners.

Reason(s) For Decision / Options Appraisal

1. Millbrook Healthcare Ltd. is the Council’s contracted provider for the Hackney Integrated Telecare service. The contract was awarded via an STA in August 2017 due to the financial failure of the then incumbent provider.

2. The contract is for the provision of the three core service elements shown below:

·  Telecare Equipment Service: responsible for the supply, installation, replacement, maintenance, repair and removal of equipment and follow-up service user visits.

·  Telecare Call Monitoring Service: provision of a 24/7 call monitoring and answering service, with performance monitoring and information management responsibilities.

·  Telecare Response Service: provision of a locally based 24/7 community response service with key holding and information management responsibilities.

ParaDoc: a rapid response team consisting of a Doctor and Paramedic who assess and manage people in their own home. An alternative to 999 for people with urgent medical and social needs, as well as for falls.

3. The NHS North East London, City and Hackney Place-Based Partnership (NHS NEL CHPBP) commissioned ParaDoc service is included in the Telecare response triage pathway. 

4. The contract with the incumbent expired on 25 Feb 2023. There are no available options to extend.

5. The well-being and safety of c.3,500-4,000 vulnerable Hackney residents are reliant on the 24/7 Telecare service. Due to associated risks, it is not possible to cease provision of this service.

6. The proposal is to extend the contract with Millbrook Healthcare Limited, as the incumbent, for a period of 2.5 years (18 months + 6 months + 6 months options to extend), commencing on 26 February 2023.

7. The purpose of the requested contract extension is to allow for continued service delivery whilst we develop and implement a strategy for the Digital Shift 2025 (Appendix 1) with an aim to secure the opportunities and benefits of digital to improve outcomes for Hackney residents. Key objectives within the strategy are;

·  to complete the necessary transition from analogue to digital ensuring the continued safety of some of our most vulnerable residents;

·  to commission a future technology-enabled care (TEC) service, enabling us to move towards delivering a proactive and preventive digital offer that can help us improve the quality of life for our residents and reduce reactive care costs.

8. During the extended contract period we will work to resolve the budget pressure and run an open tender under the OJEU process for delivery of a future TEC service. The service will build on the improvements made during the digital transition and aim to take full advantage of developments in the tech industry such as  ...  view the full decision text for item 7.

7.1  Charlotte Smith, Senior Commissioning Officer for Older People and Long Term Conditions,  introduced the report seeking approval to extend the Hackney Integrated Telecare Service contract with the incumbent provider for a period of 18 months, plus 6 months plus 6 months options to allow for continued service delivery whilst the service completed the necessary transition from analogue to digital ensuring the continued safety of the most vulnerable residents and commissioned a future Technology-Enabled Care service enabling the move towards delivering a proactive and preventive digital offer that can help improve the quality of life for residents and reduce reactive care costs.

7.2  In response to a question from a Member of the Committee regarding why the contract extension had been requested retrospectively after the contract had expired in February 2023, it was stated that due to health funding issues it had not been possible to achieve a successful tender in February 2023.  The City and Hackney Place-Based Partnership Delivery Group had been unable to agree to recurrent funding for any project or service due whilst transitioning to an  Integrated Care System. A request for an increase in funding from the Better Care Fund contribution was submitted in August 2022 and a £50,000 recurrent increase to its annual contribution was agreed in May 2023.  The budget was now sufficient to meet the forecast spend for a period of two and half years. 

RESOLVED:

To award an extension to the contract with Millbrook Healthcare Limited for the delivery of the Hackney Integrated Telecare Service, for a period of 18-months + 6-months + 6-months options to extend; full 30-month contract extension period 26 February 2023 to 25 August 2025. The total projected contract value for the full period is c.£2,080k. This includes an estimated c.£204k cost of equipment that will be reimbursed by health partners.

Reason(s) For Decision / Options Appraisal

1. Millbrook Healthcare Ltd. is the Council’s contracted provider for the Hackney Integrated Telecare service. The contract was awarded via an STA in August 2017 due to the financial failure of the then incumbent provider.

2. The contract is for the provision of the three core service elements shown below:

·  Telecare Equipment Service: responsible for the supply, installation, replacement, maintenance, repair and removal of equipment and follow-up service user visits.

·  Telecare Call Monitoring Service: provision of a 24/7 call monitoring and answering service, with performance monitoring and information management responsibilities.

·  Telecare Response Service: provision of a locally based 24/7 community response service with key holding and information management responsibilities.

ParaDoc: a rapid response team consisting of a Doctor and Paramedic who assess and manage people in their own home. An alternative to 999 for people with urgent medical and social needs, as well as for falls.

3. The NHS North East London, City and Hackney Place-Based Partnership (NHS NEL CHPBP) commissioned ParaDoc service is included in the Telecare response triage pathway. 

4. The contract with the incumbent expired on 25 Feb 2023. There are no available options to extend.

5. The  ...  view the full minutes text for item 7.

RESOLVED:

3.1  Agree the commissioning of the City and Hackney Stop Smoking Service for a period of up to five (5) years (3+1+1) beginning 01/07/2024 at a maximum value of £4m (Option number 4 in section 6).  This will include within this financial envelope, a budgeted amount of £80,000 per annum for an insourced PO7 post to provide an enhanced community engagement function and work with the provider to develop partnerships with high prevalence and high risk communities.

3.2  Such commissioning shall include the option to award further funding to the successful bidder of up to £500k (in total, over the lifespan of the contract, depending on allocation from central government) for optional additional work packages to deliver national initiatives. The potential scope of these work packages is described in section 6.5.7 of the submitted report.

Reasons for Decision  

6.1  There are four options relating to the future of the City and Hackney Stop Smoking Service (SSS) that have been considered in this business case and are set out below. It is essential to first understand the wider context in which these options have been considered.

·  Smoking is the primary cause of preventable illness and premature death, accounting for approximately 74,600 deaths a year in England, and the leading cause of health inequalities, accounting for half the difference in life expectancy between the richest and poorest areas.

·  Evidence shows at least one in two long term smokers will die from a smoking-related disease, but that risk may now be as high as two in three.

·  The annual societal costs of smoking in Hackney are estimated at over £100m each year (equivalent data for the City are not available). These costs are spread across health services, local authorities (accounting for an estimated 8% of all paid home and residential care costs) and the fire service - but the most significant costs are in lost productivity due to smoking-related ill-health. In the context of the current cost of living crisis, it is particularly important to recognise and address the impacts of smoking in driving people into poverty, estimated to affect almost 3,000 households locally each year.

·  Smoking interventions are the most cost effective (often cost ‘saving’) of all public health interventions and have the greatest impact on reducing health inequalities (along with domestic violence prevention).

·  Smoking is highly addictive, with two thirds of those who try smoking going on to become daily smokers. Smokers who access an evidence-based stop smoking service are three times more likely to quit than those who go it alone.

·  According to data from the Annual Population Survey in 2021, smoking prevalence in Hackney amongst adults (age 18+) was 14.2%, higher than our 15 ‘statistical neighbours’.  Equivalent data are not available for the City.

·  Adult smoking prevalence in Hackney has fallen since the existing service started in 2018, from 14.8% to 14.2% in 2021. Applying 2021 estimated prevalence to the local population equates to  approximately 30,000 adults (age 18+) still smoking in Hackney.

·  City and Hackney currently has  ...  view the full decision text for item 8.

8.1  Suhana Begum, Senior Public Health Specialist introduced the report requesting the authority to recommission the City and Hackney Stop Smoking Service for a further 5 years from the 1st of July 2024.  The recommissioning would result in £124k savings annually and the specification included some insourcing of the service.

8.2  Members noted the error at paragraphs 6.10.3 and 6.10.4 of the report and the amendments to the KPIs.  This should read that, ‘as a minimum, 50% of people setting a quit date should achieve a 4 week quit and a stretch target of 60% will be in place’.  The target for the service is to encourage 1600 people per year to set a quit date and that at least 50% of those achieve a successful quit.

8.3  In response to a question from a Member regarding  managing and recycling e-cigarettes available under the Swap to Stop scheme, the officer replied that this service was under development and that this treatment would only be offered to smokers to help them quit.  The service would educate and encourage smokers to use refills instead of single disposable e-cigarettes.

8.4  Members emphasised that the message to people should be that e-cigarettes or vaping should be used as an aid to quit smoking and to discourage the use of disposable e-cigarettes because of its environmental impact. 

RESOLVED:

1.  Agree the commissioning of the City and Hackney Stop Smoking Service for a period of up to five (5) years (3+1+1) beginning 01/07/2024 at a maximum value of £4m (Option number 4 in section 6).  This will include within this financial envelope, a budgeted amount of £80,000 per annum for an insourced PO7 post to provide an enhanced community engagement function and work with the provider to develop partnerships with high prevalence and high risk communities.

2.  Such commissioning shall include the option to award further funding to the successful bidder of up to £500k (in total, over the lifespan of the contract, depending on allocation from central government) for optional additional work packages to deliver national initiatives. The potential scope of these work packages is described in section 6.5.7 of the submitted report.

Reasons for Decision 

6.1  There are four options relating to the future of the City and Hackney Stop Smoking Service (SSS) that have been considered in this business case and are set out below. It is essential to first understand the wider context in which these options have been considered.

·  Smoking is the primary cause of preventable illness and premature death, accounting for approximately 74,600 deaths a year in England, and the leading cause of health inequalities, accounting for half the difference in life expectancy between the richest and poorest areas.

·  Evidence shows at least one in two long term smokers will die from a smoking-related disease, but that risk may now be as high as two in three.

·  The annual societal costs of smoking in Hackney are estimated at over £100m each year (equivalent data for the City are not available).  ...  view the full minutes text for item 8.

RESOLVED:

1. To note the work undertaken on the possible insourcing of major parts of this service.

2. To agree a 24 months extension of the current Corporate Security contract with CIS Security Ltd with 12 and 18 month break clauses, while these options are actively pursued.

5. Reasons for decisions

5.1  The contract between the Council and CIS Security Limited, commenced on 4th August 2018 for four years and was extended for 12 months until 3rd August 2023.

5.2  In this time officers have been carrying out significant work to analyse the Council’s security service requirements and consider options for insourcing (or partial insourcing) of the security services. This work has included thorough consideration of potential risks associated with insourcing the service, including operational, financial, reputational and legal/regulatory considerations.

5.3  The current security framework comprises three service lots. The three lots are:

·  Lot A.  Civic buildings security including guarding, key holding and

alarm response

·  Lot B.  Vacant Premises & Estate security

·  Lot C.  Residential concierge service

5.4  In order to comprehensively interrogate the current security service and thoroughly test the viability of insourcing, the Council first produced a full cost breakdown structure of the Council’s current arrangements. This cost structure comprised:

·  All staffed security hours required by the Council and delivered by the service provider

·  All supervisory hours

·  Vehicle, equipment & material costs 

·  Management resources

In so doing, we were able to assess the service as a whole in order to identify possible efficiencies achieved from economies of scale, as well as break the service right down into smaller more manageable business models.

5.5  From the onset of the exercise we considered the legal complexities and issues around the Private Security Industry Act 2001 (PSIA 2001), including reflecting experience from the management of the Council’s CCTV service. The requirements of the legislation mean that in providing a security service to customers, the ‘directors’ of the Council would be required to be licensed by the Security Industry Association including Mayor &  Councillors. 

5.6  Further legal advice and local authority benchmarking clarified that the section of the PSIA 2001 Act relating to licensing of Directors only applies in circumstances in which security services are being delivered to a third party. So there is therefore no requirement for the Mayor & Members to be licensed when the Council in fact delivers the security service to itself (licensing would be limited to those directly involved in the delivery & management of the service).

5.7  We carefully considered parts of the service for which there may be licensing implications under the law and excluded them from the insourcing review. This also included specialist services such as dog handlers. As well as safeguarding the Council by providing a degree of certainty around legal requirements, these service elements also fluctuate in demand requiring a high level of flexibility in the ability to scale up and scale down resources. This makes planning resources for these parts of the service difficult and therefore better suited to outsourced provision.

5.8  Following this stage of  ...  view the full decision text for item 9.

9.1  Members noted the Supplementary Papers circulated prior to the meeting.

9.2  Rob Miller, Strategic Director Customer and Workplace, introduced the report seeking approval to extend the current security framework contract for Council regular and reactive security requirements and concierge services for Hackney residential blocks for a 24 month period.  This will provide the time required to retender service lots which have been assessed as not feasible for insourcing and develop further analysis of potential savings that can be achieved from this contract for reinvestment in insourcing elements of the service that are considered viable for insourcing (subject to expected cost increases set out in the report).

9.3  Following the introduction, in response to a query from a Member of the Committee regarding the insourcing of the service leading to an increase in staff from 120 to over 140, it was stated that based on the current service hours being delivered if the service was insourced under the Council’s terms and conditions and 36 hour working week more permanent staff would be needed to employed to deliver this service.

RESOLVED:

1. To note the work undertaken on the possible insourcing of major parts of this service.

2. To agree a 24 months extension of the current Corporate Security contract with CIS Security Ltd with 12 and 18 month break clauses, while these options are actively pursued.

5. Reasons for decisions

5.1  The contract between the Council and CIS Security Limited, commenced on 4th August 2018 for four years and was extended for 12 months until 3rd August 2023.

5.2  In this time officers have been carrying out significant work to analyse the Council’s security service requirements and consider options for insourcing (or partial insourcing) of the security services. This work has included thorough consideration of potential risks associated with insourcing the service, including operational, financial, reputational and legal/regulatory considerations.

5.3  The current security framework comprises three service lots. The three lots are:

·  Lot A.  Civic buildings security including guarding, key holding and

alarm response

·  Lot B.  Vacant Premises & Estate security

·  Lot C.  Residential concierge service

5.4  In order to comprehensively interrogate the current security service and thoroughly test the viability of insourcing, the Council first produced a full cost breakdown structure of the Council’s current arrangements. This cost structure comprised:

·  All staffed security hours required by the Council and delivered by the service provider

·  All supervisory hours

·  Vehicle, equipment & material costs 

·  Management resources

In so doing, we were able to assess the service as a whole in order to identify possible efficiencies achieved from economies of scale, as well as break the service right down into smaller more manageable business models.

5.5  From the onset of the exercise we considered the legal complexities and issues around the Private Security Industry Act 2001 (PSIA 2001), including reflecting experience from the management of the Council’s CCTV service. The requirements of the legislation mean that in providing a security service to customers, the ‘directors’ of the Council would be required to be licensed  ...  view the full minutes text for item 9.

RESOLVED:

1. To authorise the award of a contract for the procurement of a new ‘Unified Communication as a Service’ telephony service that includes an omnichannel contact centre solution to Supplier 1.

Reason(s) For Decision / Options Appraisal

5.1 The initial term of the current contract for the telephony solution expired on the 31st of May 2023, an extension of up to one year has been agreed under the terms of the contract, with a 30 day notice period.

5.2 A review of the current supplier was carried out on the following criteria;

·  Performance

·  Compatibility with our environment

·  Value for money

·  Future requirements

·  Comparison to competitors

5.3 Following the review, it was determined that other providers would better suit the Council’s present and future needs.

5.4 This decision is to approve a contract award for a replacement supplier for our telephony solution procurement via the UK Government Digital Marketplace (G Cloud 13 - RM1557.13)

5.5  Alternative Options (Considered and Rejected)

5.6 Do nothing (continue the current contract through to May 2025)

This is not recommended as our assessment of user needs and soft market testing has shown that the Council will achieve significant benefits to user experience, technology fit and costs through procurement of a new system.

5.7 Full Tender

Not recommended as existing frameworks with market leading UCaaS services are available, which reduces the procurement timeframes.

10.1  Rob Miller, Strategic Director Customer and Workplace introduced the report outlining the proposal to replace the current cloud based service for telephony and contact centre software and seeking to award a contract for the procurement of a new ‘Unified Communication as a Service’ telephony service that included an omnichannel contact centre solution.

10.2  Members noted the exempt appendices.

RESOLVED:

1. To authorise the award of a contract for the procurement of a new ‘Unified Communication as a Service’ telephony service that includes an omnichannel contact centre solution to Supplier 1.

Reason(s) For Decision / Options Appraisal

5.1 The initial term of the current contract for the telephony solution expired on the 31st of May 2023, an extension of up to one year has been agreed under the terms of the contract, with a 30 day notice period.

5.2 A review of the current supplier was carried out on the following criteria;

·  Performance

·  Compatibility with our environment

·  Value for money

·  Future requirements

·  Comparison to competitors

5.3 Following the review, it was determined that other providers would better suit the Council’s present and future needs.

5.4 This decision is to approve a contract award for a replacement supplier for our telephony solution procurement via the UK Government Digital Marketplace (G Cloud 13 - RM1557.13)

5.5  Alternative Options (Considered and Rejected)

5.6 Do nothing (continue the current contract through to May 2025)

This is not recommended as our assessment of user needs and soft market testing has shown that the Council will achieve significant benefits to user experience, technology fit and costs through procurement of a new system.

5.7 Full Tender

Not recommended as existing frameworks with market leading UCaaS services are available, which reduces the procurement timeframes.

RESOLVED to:

1. Approve the commencement of a two stage design and build procurement for Kings Hall Leisure Centre Refurbishment Project through the Southern Construction Framework Lot 3.

2. Delegate authority to the Group Director, Finance, in consultation with the Hackney Kings Hall Leisure Centre Development Board, in respect of the award of a Pre-Construction Services Agreement (PCSA) to the recommended contractor.

3. Authorise the Director of Legal, Democratic and Electoral Services to agree and enter into all necessary legal documentations relating to a Pre-Construction Service Agreement with the recommended contractor.

CPIC is requested to note that:

4. Following a review of the Stage 3 cost plan by the PCSA contractor, a Full Business Case requesting budget approval for the whole project will be brought back to Cabinet for consideration.

5. Subject to Cabinet approving such Full Business Case, the project will proceed by submitting a planning application and continuing to complete the second stage of the procurement process (including the open book market testing of the Stage 4 design with the PCSA contractor’s supply chain).

6. At the completion of the second stage of the procurement process, a report recommending the award of the main design and build contract to the recommended contractor will be brought back to CPIC for consideration and approval.

5. Reasons For Decision

5.1 The project team undertook Options appraisal workshops to establish the refurbishment options for Kings Hall Leisure Centre following a feasibility study in 2019. Three options were considered.

·  Create no new facilities and undertake basic repair only.

·  A number of mid level investment options that created some new facilities and brought the leisure centre up to current standards.

·  Maximise the opportunity for new facilities whilst bringing the building and it’s facilities up to current standards (preferred design option).

5.2 As set out in FCR S126, the decision was taken to progress the preferred design option for the KHLC refurbishment project to the planning stage, in order to gain clarity on the cost of the scheme and the investment case for its delivery. A design team was appointed, and Stage 2 design is in the process of being concluded. During this early design stage, the design team has sought to gain a fuller understanding of the constraints of the building, and its existing context, through the procurement of a range of surveys and consultant reports. This has given an insight into the complexities of the scheme, and the need for early contractor engagement to better understand the most efficient and cost effective way to manage the delivery of the scheme and the risks which it presents as an ageing historic building.

5.3 This initial business case recommends the progression of a two stage design and build procurement process in order to secure early contractor engagement into the design process. This report also describes a two stage business case process, whereby a Full Business Case would be recommended to Cabinet for approval, once our recommended PCSA contractor had had the opportunity to review the  ...  view the full decision text for item 11.

11.1  Hayley Graig, Major Capital Projects Delivery Lead, introduced the report setting out the case for the contractor procurement to support the delivery of the Kings Hall Leisure Centre refurbishment project, the two stage design and build and procurement process.  The procurement would be split at 70% quality and 30% cost. The project governance and management structure put in place for this refurbishment project also ensured that lessons learned across the Council’s broader capital delivery programmes including the Britannia Leisure Centre project could be fed into the project team and help secure the project’s success. The project was anticipated to be achieved within the existing budget.

11.2  Following the introduction, Members of the Committee noted the  following:

·  The importance of Kings Hall Leisure Centre to the local community and that doing nothing would not be an option, and that the staged approach would mitigate the risks for this complex site.

·  It had been reassuring that the officers working on this project had previous experience of working on the successful multi award-winning Britannia Leisure Centre.

·  In response to a question regarding the timeline of the report to Cabinet, the officer explained that the tender document would be issued in a few days which would enable a contractor to be appointed and a pre-construction services agreement to be signed by end of January 2024, the Stage three design would be reviewed from February to March 2024 and it was anticipated that a full business case including a better understanding of the risks and costs could be submitted to Cabinet by spring 2024.

11.3  The Chair thanked officers for their work on this project.

RESOLVED to:

1. Approve the commencement of a two stage design and build procurement for Kings Hall Leisure Centre Refurbishment Project through the Southern Construction Framework Lot 3.

2. Delegate authority to the Group Director, Finance, in consultation with the Hackney Kings Hall Leisure Centre Development Board, in respect of the award of a Pre-Construction Services Agreement (PCSA) to the recommended contractor.

3. Authorise the Director of Legal, Democratic and Electoral Services to agree and enter into all necessary legal documentations relating to a Pre-Construction Service Agreement with the recommended contractor.

CPIC is requested to note that:

4. Following a review of the Stage 3 cost plan by the PCSA contractor, a Full Business Case requesting budget approval for the whole project will be brought back to Cabinet for consideration.

5. Subject to Cabinet approving such Full Business Case, the project will proceed by submitting a planning application and continuing to complete the second stage of the procurement process (including the open book market testing of the Stage 4 design with the PCSA contractor’s supply chain).

6. At the completion of the second stage of the procurement process, a report recommending the award of the main design and build contract to the recommended contractor will be brought back to CPIC for consideration and approval.

5. Reasons For Decision

5.1 The project team undertook Options appraisal workshops to establish the  ...  view the full minutes text for item 11.

Note from the Governance Team Leader:

Agenda Item(s) XX - XX allows for the consideration of exempt information.

Proposed Resolution:

That the press and public be excluded during discussion of the remaining items on the agenda, on the grounds that they involve the likely disclosure of exempt information as defined in those paragraphs of Part 1 of Schedule 12A of the Local Government Act 1972.

RESOLVED

THAT the press and public be excluded from the proceedings of the Cabinet Procurement Insourcing Committee during consideration of Exempt Appendices at item 13 on the agenda on the grounds that it is likely, in the view of the nature of the business to be transacted, that were members of the public to be present, there would be disclosure of exempt information as defined in paragraph 3 of Schedule 12A to the Local Government Act 1972 as amended.

13.1 The discussion and decision are set out in item 10.

The Chair will consider the admission of any late items of Urgent Exempt Business

14.1  There was no restricted urgent business to consider.