Cabinet Member Delegated Decision
Decision due: 19th March 2015
Contract Award for the delivery partnership with Emmaus Lambeth for the Emergency
Support Scheme (under waiver)
Wards: All
Report Authorised by: Helen Charlesworth-May, Strategic Director Commissioning
Portfolio: Paul McGlone, Deputy Leader (Finance and Investment)
Contact for enquiries: [email protected]
Emily Newell, Commissioning Officer - Financial Resilience, 020 7926 0973
Report summary
This report seeks permission to award Emmaus Lambeth a two year contract (1st April 2015 to
31st March 2017) under waiver to extend and increase the value of their existing contract to
provide furniture, white goods and a home removal service for applicants to the Emergency
Support Schemes in Lambeth and Lewisham. The contract will have a £35,000 base value per
annum with an additional up to £450,000 in spot purchasing of goods and services per annum.
Emmaus Lambeth have been providing this service to Lambeth residents since the Emergency
Support Scheme was established in April 2013 and it is intended that they will offer a service to
Lewisham after the 1st April 2015 when the schemes merge.
The London Boroughs of Lambeth and Lewisham were provided with grant funding to run Local
Welfare Assistance Schemes in 2013/14 and 2014/15, and this was subsequently removed from
April 2015 onwards but Lambeth and Lewisham will use the underspend on this grant to run a
shared Emergency Support Scheme for a minimum of 2 years from April 2015. This scheme will
be run by LB Lambeth on behalf of LB Lewisham. Failure to continue providing a local scheme
will leave many thousands of financial vulnerable families and single households without the key
support they need to set up home after a period in care or after a period of homelessness, or
without the support they need to manage a disaster or crisis.
Finance summary
This report proposes to award Emmaus Lambeth a contract with a base value of £35,000 per
annum and up to £450,000 in spot-purchased goods and services per annum starting 1st April
2015 and ending 31st March 2017. As the volume of referrals and outputs is unknown at this
stage a block funded contract would not be suitable, however the intention is to fix an upper limit
on spend of £450,000 per annum, which will cover awards made to both Lambeth and
Lewisham applicants. Under this contract, goods and services will be purchased at agreed
maximum rates, and Lambeth will be invoiced for awards on a monthly basis. The contract will
also provide a separate annual fixed sum to Emmaus Lambeth of £35,000 to cover staffing and
on-costs associated with the administration and management of referrals in both boroughs
under the scheme.
This contract will be paid using underspend from grants provided to Lambeth and Lewisham to
run Local Welfare Assistance Schemes in 2013/14 and 2014/15. A service level agreement will
be set up between Lambeth and Lewisham to cover the transfer of funds between boroughs for
this purpose and Lambeth will invoice LB Lewisham on a monthly basis for the goods and
services provided to Lewisham residents under the terms of that agreement. Lewisham will also
be invoiced for their £17,500 share of the base contract value.
The grant for the Lambeth spend is held corporately withinreserves and released through a
virement to Revenues and Benefits based on evidenced expenditure to date. The contracting
arrangements with Emmaus Lambeth are being managed by officers within the Commissioning
cluster in partnership with Revenue and Benefits staff.
Recommendations
1. To approve a waiver of 9.2 of the Contract Standing Orders to extend and vary the existing
contract with Emmaus Lambeth for providing furniture, white goods and removals for the
Emergency Support Scheme for the period 1st April 2015 to 31st March 2017 at a value of up
to £485,000 per year.
1.
Context
1.1
The Government abolished Community Care Grants and Crisis Loans in April 2013, and
the funding for this was transferred to local authorities in the expectation that they would
introduce Local Welfare Assistance schemes that would meet the needs that were
previously met through central Government provision. The Emergency Support Scheme
was established and went live from April 2013.
1.2
The grant allocated to Lambeth was as follows:
2013-14
2014-15
Programme
£1.588m
£1.588m
Admin
£335,686
£307,692
1.3
In early 2014 it was announced that the Government plan to end the national funding for
Local Welfare Assistance from April 2015. A judicial review was undertaken but was
unsuccessful, and a further consultation process is underway at the time of writing. Due
to the application levels to the Emergency Support Scheme being lower than anticipated,
we have a significant underspend from the grant allocated to us in 2013/14 and 2014/15.
This underspend will be used to ensure that the scheme can continue running until the
end of 2016/17 without Government funding.
1.4
In addition, the decision has been made to run a shared scheme with the London
Borough of Lewisham from April 2015. The shared scheme will be run by Lambeth on
behalf of Lewisham from our existing assessment team with the running costs paid by
Lewisham under the terms of a service level agreement. Joining the schemes together
will accrue modest savings for Lambeth. The decision to run a shared scheme has been
subject to extensive discussion with Cabinet members at the Cabinet sub-group on
Financial Resilience, and will be approved formally via an ODDR process running
concurrently to this one.
1.5
The Emergency Support Scheme contributes to the ‘communities feel safer and
stronger’ and ‘more jobs and sustainable growth’ outcomes of the Community Plan, by
helping residents to achieve financial security, ensuring older, disabled and vulnerable
residents can live independently and have control over their lives, and contributing to
improved health and wellbeing. From the outset, the design of the Emergency Support
Scheme was co-produced with residents and stakeholder groups as well as going
through a thorough consultation process. These processes, and the continued
partnership with local charitable organisations, ensure that the scheme delivers a cooperative, community-led response to financial hardship.
1.6
Emmaus Lambeth have been providing furniture, white goods and a home removal
service for applicants to the Emergency Support Scheme since it was established in
April 2013.
2.
Proposal and Reasons
2.1
This report seeks permission to award Emmaus Lambeth a two year contract under
waiver to continue to provide furniture, white goods and a home removal service for
applicants to the Emergency Support Scheme and to extend this offer to Lewisham
applicants. This report requests permission to award the contract under waiver rather
than following a competitive procurement process for four reasons:
1.
There are no other comparable providers who have the expertise, infrastructure
and existing relationships to provide this service effectively and on the scale
required, whilst also engaging service users in it’s delivery. Awarding Emmaus
this contract ensures that we meet co-operative council outcomes around
intermediate labour market opportunities. When deciding to award Emmaus we
considered other charitable organisations who sell second hand furniture. It was
our view that the other local suppliers (British Heart Foundation) lacked the
capacity to deliver the volume anticipated at the time, and Emmaus
demonstrated considerable willingness to invest their own funds and secure
agreements with partner organisations in order to make the service effective.
2.
Emmaus have been providing this service during the first two years of the
Emergency Support Scheme, and have consistently achieved monitoring targets,
communicated well with staff in Revenues and Benefits and provided an efficient
and effective service for residents.
3.
In developing the specification for the new shared scheme, politicians and
officers from LB Lewisham expressed support for continuing our current
arrangements with Emmaus. Our partnership with Emmaus was a key motivator
for Lewisham deciding to run a shared scheme with us.
4.
The proposed contract with Emmaus represents good value for money. The
schedule of rates that we have agreed with them compares very favourably with
those charged by commercial suppliers, aided by the fact that Emmaus provide
us with good quality second hand goods that have been donated to them by local
residents and businesses. Compared to suppliers like the Family Fund (being
used by several LAs), Emmaus’s prices are even more competitive. The
investment or £35,000 per year in administrative costs is significantly less than
we would have to pay if we were meeting applicants, helping them chose items,
processing orders and arranging deliveries ourselves. In addition, we have made
efficiencies in Emmaus’s administration costs year on year, reducing from
£50,000 in 2013/14 to £17,500 per borough in 2015/16.
5.
Working with Emmaus adds considerable social value and is an illustration of cooperative commissioning in action. Former homeless people living in their two
residential communities in the borough (Norwood and Kennington) work on the
scheme. This enables them to sign off benefits and develop their work readiness.
Emmaus reinvest all income they make through delivering the scheme into their
wider work in the community to support former homeless people and offer low
cost furnishings and goods to low income families through their network of shops.
3.
Finance
3.1
This report proposes to award Emmaus Lambeth a contract with a base value of
£35,000 per annum and up to £450,000 in spot-purchased goods and services. The
£35,000 is a fixed sum to cover staffing and other administrative costs. The £450,000 is
a fixed upper limit on spend on good and services. We we expect the actual spend to be
below this limit. A block funded contract would not be suitable due to the volume of
applications and referrals being unknown.
3.2
The contract with Emmaus will be paid using underspend from the previous grants
allocated to us by the Department for Work and Pensions in 2013/14 and 2014/15. This
funding is held corporately within reserves and will be released through a virement to
Revenues and Benefits based on evidenced expenditure. Payment will be released from
Revenue and Benefits to Emmaus on a monthly basis on receipt of an invoice. Officers
will monitor spend on a month by month basis to ensure that we stay within our annual
limit, and make modifications to award criteria and size to manage spend where
necessary.
3.3
We will have a service level agreement with Lewisham for the fixed cost elements
associated with running the scheme which will include the £17,500 per annum they will
pay as their share of the Emmaus contract. This service level agreement will include
their obligation to pay the cost of any in-kind awards to Lewisham applicants that
Emmaus fulfil under this contract.
3.4
Both contracts contain a clause that allow the contracts to end with three months notice
and this allows for future budget uncertainty whilst meeting the need to establish an
important and urgent service.
There will be no inflationary uplift over the length of the contract and no additional
money, or capital, is required for this contract.
3.5
4.
Legal and Democracy
4.1
The Council has delegated the authority to award these contracts to the relevant
Strategic Director. Before exercising that authority, the approval of the Procurement
Board must be obtained.
4.2
The Contract Standing Orders allow officers to waive the requirement to competitively
tender contracts valued at £100,000 and more where it can be proven that there is only
one provider who can deliver the products or services.
4.3
The Public Procurement Regulations 2006 allow contracting authorities to negotiate
contract awards without the publication of a contract notice in OJEU where for technical
reasons the contract can only be fulfilled by a particular economic operator.
4.4 This proposed key decision was entered in the Forward Plan on x [date] and the necessary
28 clear days notice has been given. In addition, the Council’s Constitution requires the
report to be published on the website for five clear days before the proposed decision is
approved by the Cabinet Member. Any representations received during this period must
be considered by the decision-maker before the decision is taken. A further period of five
clear days - the call-in period – must then elapse before the decision is enacted. If the
decision is called-in during this period, it cannot be enacted until the call-in has been
considered and resolved.
5.
Consultation and co-production
5.1
The relevant cabinet members have been consulted and their views represented as
necessary within this report.
5.2
The report has not been sent to the relevant Scrutiny Committee, but the partnership
with Emmaus Lambeth that is the subject of this report has been subject to extensive
discussion with Cabinet Members at the Cabinet sub-group on Financial Resilience, and
their views are represented as necessary within this report.
5.3
The initial design of the Emergency Support Scheme and its partnership with Emmaus
Lambeth has been subject to extensive external consultation both formal and informal. A
formal eight week consultation was undertaken which involved writing to over 1,000
residents likely to be affected by the changes, holding public meeting and meetin various
stakeholder groups. This concluded with broad support for all areas set out for
consultation and no changes being deemed necessary to the suggested delivery
options.
6.
Risk management
6.1
The risks associated with this arrangement with Emmaus Lambeth relates to them not
being able to secure enough donated stock to meet the needs of applicants referred to
them. We are mitigating this risk by ensuring that the charity has access to a range of
suppliers from whom they can obtain required items if their own donated stock is running
low. To date, there have been limited occasions where Emmaus have had to deliver
purchased stock to applicants, and this has not had a significant impact on the cost of
the scheme. Emmaus do not exceed the maximum rates agreed with them.
7.
Equalities impact assessment
7.1
A formal Equalities Impact Assessment was completed when the Emergency Support
Scheme was initially developed, and was reviewed at the Corporate Equalities Panel in
November 2012. This has been reviewed and remains applicable.
8.
Community safety
8.1
Emmaus Lambeth engage with former homeless people, many of whom are those
maintaining abstinence, in the delivery of this contract. Their service users support the
processing and delivery of orders from the Emergency Support Scheme. This contract
has also provided them with the capacity to set up a new outlet in a disused councilowned shop premises on an estate in Brixton, and open a community with 27 new bed
spaces in Kennington. Both of these initiatives have wider community safety benefits.
9.
Organisational implications
The following sections must be considered, but are optional and each should be deleted
if not relevant to the report. If there are no organisational implications, state “None”.
9.1
Environmental
Not applicable.
9.2
Staffing and accommodation
No issues.
9.3
Procurement
Emmaus Lambeth are a Living Wage employer.
10.
Timetable for implementation
10.1
The table below shows the stages, milestones and deadlines for implementing the
contract.
Item Description
Date
1
Published online for call-in period
23.3.15
2
Return signed contract to procurement board administrator
31.3.15
3
Anticipated contract start date
01.4.15
4
Monthly monitoring meetings
On-going
5
6-month review of shared Emergency Support Scheme
01.10.15
10.2
Emmaus will send monthly contract performance and financial data to staff in the
Financial Resilience Commissioning team for the duration of the operation of the
scheme, and will also meet with them on a monthly basis. A dedicated commissioning
manager from this team will oversee the contract, working in partnership with key staff
within
Revenue
and
Benefits.
Audit trail
Consultation
Name/Position
Helen Charlesworth-May
Rachel Sharp
Mandy Green
Sara Hagley
Rachel Harrison
Michael O’Hora, Legal
Wayne Chandai
Councillor Paul McGlone
Internal Officer Board
Procurement Board
External
Lambeth cluster/division or
partner
Strategic Director
Commissioning Director
Associate Director,
Commissioning
Deputy Head of Revenues and
Benefits
Business Partnering
Enabling: Integrated Support
Enabling: Corporate Affairs
Cabinet Member:
Date of meeting
Report history
Original discussion with Cabinet Member
Report no.
Part II Exempt from Disclosure/confidential
accompanying report?
Key decision report
Date first appeared on forward plan
Key decision reasons
Background information
Date
Sent
3.2.15
3.2.15
3.2.15
Date
Comments
Received in para:
3.2.15
10.2.15
11.3.15
3.2.15
3.2.15
3.2.15
11.3.15
4.2.15
9.2.15
4.2.15
18.3.15
19.3.15
27.2.15
9.2.15
N/a
No
Yes
02/04/15
N/a
-
Lambeth response to the consultation on
cuts to Local Welfare Assistance budget
LB Lambeth response
Nov 14.docx
-
Q&A for ESS scheme
Lambeth Emergency
Support Scheme FAQs.docx
Appendices
None.
APPROVAL BY CABINET MEMBER OR OFFICER IN ACCORDANCE WITH SCHEME OF
DELEGATION
I confirm I have consulted Finance, Legal, Democratic Services and the Procurement
Board and taken account of their advice and comments in completing the report for
approval:
Signature ______________________________________ Date ________________
Post: Michelle Binfield, Lead Commissioner, Commissioning
I approve the above recommendations:
Signature ______________________________________ Date ________________
Post: Mandy Green, Associate Director, Commissioning
I confirm I have consulted the relevant Cabinet Members, including the Leader of the
Council (if required), and approve the above recommendations:
Signature ______________________________________ Date ______________________
Post: Cllr Paul McGlone, Deputy Leader and Cabinet Member for Finance and Investment
Any declarations of interest (or exemptions granted):
Issue
Interest declared
None
None