Agenda item

            The Board received a report of the Strategic Director, Health and Community which requested suspension of the relevant procurement Standing Orders 3.1 – 3.9 under the exceptional circumstances set out in this report, to enter into new contracts for the provision of Residential and Nursing Care.

            It was reported that Halton’s current contract for the provision of Residential and Nursing Care expired at the end of March 2009. The Authority had a statutory duty to meet the needs of physically frail and vulnerable people that were assessed as requiring residential and nursing care. The provision of this care was delivered within residential establishments  (services that provided both accommodation and care) registered with the Commission for Social Care Inspectorate (CSCI). CSCI were the statutory regulators of residential and nursing care and all residential establishments must be built and operated to CSCI standards. It was advised that this report related to purchasing arrangements for the provision of residential and nursing care for clients to whom the local authority owed a statutory duty of care.

            It was further advised that as commissioners of nursing and residential care, Halton Borough Council could enter into two different types of purchasing arrangements, with registered homes in the borough as follows:

Block purchase arrangement and Spot purchase arrangement. Details of these were outlined in the report.

            It was proposed that Halton continued with the existing method of “spot purchase” based on the rationale which was outlined in the report for Members’ consideration.

            The Board was advised that suspension of standing orders was therefore requested due to the particular circumstances set out in sections 3.1 – 3.2 of the report, in that compliance with standing orders relating to procurement was not practicable, in that placing a limitation on our arrangements to purchase beyond the requirements to meet CSCI standards, would restrict clients choice on where they could live and ending current arrangements with homes could mean that extremely frail and vulnerable older people would be asked to leave their existing homes in order to transfer to an alternative homes under contract with the Authority.

It was advised that moving frail and vulnerable people could cause the individual to experience considerable distress and could pose a significant risk to their health. Waiving Standing Orders also allowed the Authority to reach informed decisions regarding a fair rate for the purchase of registered care that was applied to all homes operating across Halton.

            It was reported that the proposed contractual arrangements would be for a period of three years, with an option to extend a further three years, subject to annual approval of the Strategic Director, Health and Community in conjunction with the Portfolio Holder for Health and Social Care. The Board was informed that the draft strategy had now been completed and the findings were set out in the report.

In addition, a regional comparison of fees had been carried out as part of the work undertaken to inform the development of the Residential Care Strategy. It was reported this comparison bore out commissioner and provider concerns that current fee levels in Halton were lower than that paid within neighbouring authorities. Fees across the region were detailed in the report for consideration.

            The Board was advised of a proposal for a 4.95% increase on existing fees impacting on community care budgets. Arising from the discussion, Members considered the business case for waiving standing orders in terms of:

• Value for money and competition;
• Transparency;
• Propriety and security;
• Accountability; and
• Position of the contract under the Public Contract Regulations 2006.

            The proposed changes including the percentage increase from the rates currently paid to the proposed rates were as follows –

* All costs paid by PCT

            Arising from the discussion, members felt it would be useful to be kept up to date and suggested a presentation be provided to all elected Members around the subject.

            RESOLVED That:

(1) in the exceptional circumstances set out below for the purposes of Standing Order 1.6, Procurement Standing Orders 3.1 – 3.9 be waived on this occasion to permit the Strategic Director, Health and Community to enter into contracts on an individual “spot purchase” basis with providers of registered residential establishments that met the Council’s quality criteria; and

(2) the Strategic Director, Health and Community be authorised, in consultation with the portfolio holder for Health, to enter into “spot purchase” contract arrangements at the Borough-wide rates for each type of service provision as set out in Section 6.1 of the report, for the contract period of three years from April 2009 to the end of March 2012, with an option to extend for up to a further three years from April 2012 to the end of March 2015, and that these purchasing arrangements be reviewed on an annual basis by the Strategic Director, Health and Community, in consultation with the Portfolio Holder for Health and Social Care