Decision details

To approve the recommendation to award a number of block contracts for Nursing Care Services following a competitive tender.

1          In accordance with the Procurement Plan approved by the Executive on 17 October 2017 (that Adult Social Care, Health and Housing enter into a block contract/s with a maximum of four nursing homes to purchase a maximum of 22 nursing beds with local providers, and delegates the award of the contract to the Executive Member for Adult Services, Health and Housing) that following an evaluation of bids received, that a block contract for Nursing Care Services, be awarded to the following care home:

•           Tenderer B

2          The contract be for an initial period of three years, with two optional extensions of 12 months, making a potential contract term of five years, commencing 18 December 2017 for 22 nursing beds.

Since 2013/14 the Council has seen an overall reduction of 205 residential and nursing beds within the Borough, and a further reduction of nearly 400 beds in homes previously used outside the Borough. Whilst the demand has not reduced, the supply has, which has led to much higher prices.  Recent cost modelling evidences that the situation is getting worse.

Whilst placement costs are becoming unsustainable, they are also becoming increasingly less reflective of a client’s needs and more about how much money the provider can get paid for a bed.  Other Berkshire local authorities also report experiencing the same problems, as care managers vie for the limited number of beds available, regardless of the true cost of care and value for money.

As part of looking at options to contain rising costs, discussions were held with a number of new-build care homes locally, who were currently seeking business from the private sector and local authorities to fill their beds. These discussions evidenced that savings could be made through purchasing through block contracts.

Not to enter into block contract(s) and continue to purchase through spot contracts, however, this would mean that the Council would miss the opportunity to make the savings indicated in the Confidential Annexe to this report, thereby reducing some of the pressure on this budget.

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