PAPER C

Purpose: for Decision

REPORT TO THE EXECUTIVE

Date: 25 AUGUST 2004

Title : WAIVER OF STANDING ORDERS

CONTRACT FOR TIER 2 NON-PRESCRIBING SUBSTANCE MISUSE SERVICES

JOINT REPORT OF THE PORTFOLIO HOLDER FOR FIRE, EMERGENCY PLANNING AND CONSUMER PROTECTION AND THE PORTFOLIO HOLDER FOR ADULT AND COMMUNITY SERVICES

IMPLEMENTATION DATE: 7 SEPTEMBER 2004

PURPOSE

1. To waive standing orders in relation to the procurement of Tier 2 non- prescribing substance misuse services.

BACKGROUND

2. Tier 2 services provide accessible drug and alcohol specialist services for a wide range of drug and alcohol misusers referred from a variety of sources, including self-referrals. This tier is defined by having a low threshold to access services, and limited requirements on drug and alcohol misusers to receive services. The aim of the treatment in tier 2 is to engage drug and alcohol misusers in drug treatment and reduced drug-related harm. A tier 2 service requires competent drug and alcohol specialist workers.

Historical context:

1. 31.3.03 - Single Regeneration Budget funding for Cranstoun Tier 2 Non Prescribing Substance Misuse Service ceased.

2. February 2003 – Drug Action Team (DAT) agreed to fund contract at same level of investment until November 2003.

3. The temporary contract was extended until March 2004 at £100,000 p.a.

4. January 2004 – The IOW Compliance and Risk Manager and Purchasing Manager reviewed the case presented and confirmed and endorsed the proposal as stated.

5. 2.2.2004 DAT wrote to Cranstoun extending the agreement until 30^th September 2004 – at £103,000 p.a. Pro-rata.

6. May 2004 - Agreement in principal by Primary Substance Misuse Managers (IOW) and User consultation for Tier 2 contract to be awarded to Cranstoun.

7. 14.6.2004 Joint Commissioning Group endorsed proposal to write service level agreement/contract until 2006.

STRATEGIC CONTEXT

3. The service to be provided meet’s strategic objectives:

· Fits into Local Strategic Partnership Safer Communities Theme One.

· Written in to Adult Substance Misuse Service Plan 2004-2005 and approved by National Treatment Agency and Government Office South East.

· Awarding of contract will ensure effective delivery of Tier 2 substance misuse services to Island residents thus avoiding a drug culture gripping the Island (Theme 1).

WAIVER OF STANDING ORDERS

the cost-benefit of not going to tender, which includes:

• Delay whilst tendering process is undertaken.
• Limited competitive market.
• Satisfactory nature of current provider.
• Difficulty of recruitment by alternative providers.
• The need for stability as related services are in special measures.

4. Contract Standing Orders require the endorsement of Directors Group and the authority of the Executive for the waiver of those Standing Orders. Directors group have approved the waiver.

CONSULTATION

5. User Consultation has taken place, as well as consultation with other substance misuse services delivering on the Island.

6. IMPACT – User forum.

Cranstoun – User consultation.

Treatment Services Steering group, representation from Island Drug Alcohol

Service, Real World Trust, Cranstoun and IMPACT.

User consultation evidenced Cranstoun as very good – on occasions excellent.

FINANCIAL/BUDGET IMPLICATIONS

7. Contract value per annum (funded by National Treatment Agency).

Tier 2 Core funding £136,000

Tier 2 Through care/Aftercare funding £58,000

Total Contract value £194,000

This funding has been approved by the National Treatment Agency and Government Office South East. The Isle of Wight Council is the accountable body for this expenditure.

LEGAL IMPLICATIONS

8. Contracts of this nature are exempt from the mandatory application of EU Procurement Regulations, under the provisions of Regulation 5 Part B (Residual Services) of the Public Services Contract Regulations (Category 25 – Health & Social Services).

OPTIONS

9. This contract could be put out to tender, awarded through negotiation to the current provider, delivered in house or procured through means of a partnership

EVALUATION/RISK MANAGEMENT

10. The council, as accountable body for the funding stream, has a duty to deliver best value services. An open tender is the benchmark for demonstrating that value for money is being obtained, but in some circumstances other procurement methods can deliver best value, in place of an open tender.

11. A number of factors point towards the delivery of a best value contract by negotiation rather than tender, or other means. Tier 3 of the service (not delivered by the same contractor) is currently in Special Measures. Expending resources on a tendering process and/or the award of the contract to a different contractor, even if this holds out the potential for marginally better service delivery, or lower cost, would detract from the priority of improving the third tier service.

12. Continuity of service provider at Tier 2 level is a significant, possibly determinative, criterion in deciding which procurement method to adopt.

13. There is some risk that some marginal benefit of an open tender will be lost, but the cost in terms of delay, disruption to service during any transition and in distraction from focus on Tier 3 service will outweigh any such potential benefit.

RECOMMENDATIONS

That Contract Standing Orders be waived in relation to the procurement of Tier 2 non-prescribing substance misuse services.

BACKGROUND PAPERS

· Service Level Agreement for Tier 2 non-prescribing services (exempt under paragraph 9 of Sch. 12A Local Government Act).

· Models of Care Guidance - (full details available at www.nta.nhs.uk)

· Isle of Wight Adult Treatment Plan 2004-2005.

Contact Point: Susan Lightfoot – 01983 814381 – [email protected]

GLEN GARROD Strategic Director Social Services & Housing

DAVID KNOWLES Portfolio Holder for Fire, Emergency Planning and Consumer Protection GORDON KENDALL Portfolio Holder for Adult and Community Services