Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

1. Executive Summary

1.1. On 24 September 2007 Cabinet approved the Adult Services Development of Extra-Care Housing Report. This included Hampshire County Council's strategic aim of securing through multi-agency partnerships a total of 400 units of Extra-Care Housing over five years (2008-2013). It was anticipated that 200 of these would be within new-build Extra-Care developments and 200 would result from enhancing existing sheltered housing schemes.

1.2. The report also recognised that in revenue terms, Extra-Care is more cost effective than residential care or domiciliary care as the model attracts a wider range of funding sources such as Supporting People funding, and housing benefit. It also enables people to retain a higher proportion of their income than they can when in residential or nursing care alternatives, where people can retain an allowance only.

1.3. The delivery of Extra-Care Housing requires Hampshire County Council to work in partnership with the Borough and District Councils. The `Partnership for Extra-Care Housing in Hampshire', agreed in 2008, formalised this approach.

1.4. The schemes under consideration in this report will bring the total forecast number of units of Extra-Care Housing across Hampshire to 573, thus overachieving the target two years early (appendix E).

1.5. The purpose of this report is four fold;
i) to bring together Supporting People housing support and the Adult Services personal care, each of which are currently delivered through a separate contract for each scheme, into a single joint contract for each Extra-Care scheme using the Supporting People procurement process:
ii) to seek approval to tender for these contracts
iii) to extend the existing Adult Services care contracts in the Enhanced Extra-Care schemes to bring them in line with the joint tendering timetable
iv) to extend the night time care contract extant at Place Court, Aldershot.

1.6. For clarity, there are 4 new build schemes, located in Andover, Basingstoke, Fleet and Gosport, and eight enhanced schemes, located in Andover Basingstoke, Eastleigh, Fareham and Lymington (appendix E).

1.7. Approval to tender for joint housing support and social care provision has already been granted for two of the new build schemes, Gosport and Andover ( Executive Decision 783 dated 26.6.09).

1.8. This report refers to the two other new build schemes, Basingstoke and Fleet, and to all the eight enhanced schemes.

1.9. It also deals with the day time care contract at Place Court in Aldershot to allow it to be extended from May 2010 until March 2012 to bring it in line with the existing Supporting People housing support contract and therefore to be in a position to consider joint contracting at a later date.

1.10. Full details are set out below

New-Build Schemes:

1.11. Seek approval to tender for the 24/7 joint housing support and social care provision for the new-build Basingstoke and Fleet Extra-Care affordable housing schemes due to open in Spring 2011.

1.12. The Executive Member for Adult Social Care gave approval in June 2009 to tender for the provision of joint housing support and social care for other two new-build Extra-Care developments in Andover and Gosport. These schemes are due to open in Autumn 2010, approximately six months earlier than the Basingstoke and a year before the Fleet scheme.

1.13. To agree the anticipated maximum annual costs of the contracts to be tendered for joint housing support and social care contracts for these two new-build Extra-Care Housing schemes in Basingstoke and Fleet.

Enhanced Schemes:

1.14. Seek approval to tender for the 24/7 joint housing support and social care provision for eight existing enhanced Extra-Care housing schemes across Hampshire. These schemes are Abbey Court, in Basingstoke; Barfields in Lymington; Downing Court in Fareham; Warner Court in Andover and the schemes in Eastleigh, namely Fernhill, Laburnum Court, Rowan Court and Surrey Court 1 and 2.

1.15. The current contracts within these schemes are due to expire at the end of March 2010. Presently there are a range of different contracts and care providers within each scheme. Adult Services are to introduce single contracts for each scheme to ensure consistency of provision of care and support to the service users within each scheme.

1.16. Seek approval to tender for linked daytime domiciliary care contracts, to replace existing contracts in the neighbourhoods around Extra-Care housing schemes and thus continue to secure best value for Adult Services. Existing contracts relating to Barfields in Lymington and Laburnum Court in Eastleigh already include a neighbourhood element.

1.17. Agree the anticipated maximum annual costs of the contracts to be tendered for joint housing support and social care contracts for eight existing enhanced Extra-Care schemes.

1.18. Seek permission to extend these existing current contracts until the end of March 2011, at which time the new single contracts are due to be in place.

1.19. Seek permission to extend the current night time care contract at Place Court, Aldershot, from May 2010 until the end of March 2012. See paragraph 4.9 for further details.

1.20. In order to meet the legal requirements, laid down in the EU Procurement Directives and Hampshire County Council standing orders, it is necessary to tender for the provision of these new contracts. The length of each contract will be 3 years, in line with Supporting People procurement processes.

2. Contextual information

2.1. Cabinet approved the Adult Services Department Modernisation Strategy in December 2006 and the Better Housing Solutions Strategy in September 2007, which set the strategy for creating an alternative to residential care.

2.2. The proposal to tender is key to implementing the strategy of offering 24/7 housing support and social care from one service provider at each new-build scheme and each of the eight existing enhanced through alignment of the current Supported People-funded housing support and the current Adult Services-funded day time and night time care contracts.

2.3. The Extra-Care project is a key enabler of Adult Services delivering the following key National Indicators (NIs):
- NI 136 (People supported to live independently through social services [all ages])
- NI 139 (The extent to which older people receive the support they need to live independently at home)
- NI 142 (% of vulnerable people who are supported to maintain independent living)

2.4. The European Union (EU) Procurement Directives (current regulations 31 January 2006), and Hampshire County Council Standing Orders require that public procurement must be based on value for money which should be achieved through competition, i.e. a tender process, unless there are compelling reasons to the contrary.

3. Finance

3.1. The detail of the funding arrangements and financial analysis (including cost:benefit and break even) are set out in appendix C, which is a confidential appendix as it sets out details that may prejudice the tendering process

3.2. Extra-Care housing is an alternative to other forms of housing support and social care. People placed in these schemes must be eligible for these services. They therefore do not represent additional costs as Adult Services and Supporting People would have to make other provision for these people in any case. Extra-Care housing is more cost effective than residential care, as people meet their own accommodation costs, either through rent or the purchase of a lease.

3.3. The Enhanced schemes require an up front revenue investment in year one of £483,870 to secure appropriate night time cover. They have a pay back period ranging between 4 years and 8 years depending on the rate at which people with high and moderate levels of need replace those with low levels of need. The enhanced schemes will require a budget bid against Adult Services resources for 2010/11 to ensure the finances are transparent. This submission is in hand as part of identifying 2010/11 budget preparation process. There has already been £310,000 agreed for this year 2009/10 found from within OP/PD budgets but this needs to be regularised for 2010/11 budgets.

3.4. The Basingstoke and Fleet new build schemes require an initial capital investment. This investment of £1.2m gives a payback period of 3.5 and 6.2 years for the two schemes. The cost of this investment can be met from within the existing capital allocation for Extra-Care housing in the Adult Services capital budget (Appendix C).

3.5. For the enhanced schemes, the initial revenue investment for night cover aside, the costs of the schemes are already being paid and met from existing operational budgets which fund the existing social care and Supporting People contracts. In future the additional investment for night cover and any higher day time care and Supporting People costs will be met from the budgets that would otherwise have been used for alternative provision for these clients.

3.6. For the new build schemes Supporting People funds have been set aside to contribute to the support costs for these schemes. The social care element is funded from operational budgets that would have to provide for these clients care in any case. However, given the growth in the pressures on OP budgets it would be more transparent to show the revenue costs of these schemes separately. They will therefore be included in the budget build for 2010/11 as separate items.

4. Other Key Issues

4.1. Support for these schemes will emphasise Hampshire's commitment to its long-term strategic approach to a new generation of housing support and care for older people, endorsed by Cabinet on 27 September 2007. Extra-Care schemes promote and support Independent Living and Lifetime Neighbourhoods. Benefits include enabling residents to stay in their own homes for longer, enabling couples to stay together, building sustainable communities and preparing for the demographic challenges facing Hampshire County Council.

4.2. There have already been considerable benefits recorded from the introduction of night cover to the enhanced Extra-Care schemes at Abbey Court, Basingstoke, and at Warner Court, Andover. These include six examples of avoiding the move on to residential care, plus examples of earlier discharge from hospital, dignified death `at home' rather than in hospital, and other less financially tangible but equally valid qualitative results.

4.3. The Extra-Care schemes also represent a good example of partnership working with the Boroughs and Districts, formalised in the document `Partnership for Extra-Care Housing in Hampshire', agreed in 2008, and with registered housing providers.

4.4. All contracting for joint care and support will be done in line with the Supporting People procurement process which is acknowledged as delivering a robust quality framework and individual outcomes.

New-Build Schemes:

4.5. The planned completion date of the new-build Extra-Care scheme in Basingstoke is April 2011 and in Fleet is October 2011. More detailed milestones and timelines can be found in Appendix D.

4.6. The provision of joint care and support services is a pre-requisite to residents moving in to the new-build accommodation.

4.7. All of the capital funding for the new-build developments has already been identified and will be formally submitted for Executive Member approval in November 2009. Cabinet approval to capital investment was given in September 2007.

Enhanced Schemes:

4.8. The eight existing enhanced Extra-Care housing schemes already have extant various block contracts which provide a mixture of housing support, contracted by Supporting People, and daytime social care and night cover, contracted by Adult Services. Together these services meet the holistic 24 hour cover definition required for Extra-Care housing (Executive Member report 28 July 2008 Extra-Care Housing - Enhancement of Existing Sheltered Housing to Extra-Care Standards by the Provision of Night Time Care).

4.9. The introduction of single joint housing support and social care contracts within the existing enhanced Extra-Care schemes, will align the service provision across all of Hampshire's Extra-Care housing schemes. This approach will also achieve benefits of a streamlined and more efficient contracting and monitoring process, greater economies of scale, and increased flexibility to both the provider and the service-users.

4.10. The end dates for the current individual daytime and night time social care contracts within the each of the eight existing enhanced Extra-Care schemes have been aligned to expire at the end of March 2010. Permission is therefore sought to extend these current contracts until the end of March 2011. This will be funded from the same budgets as current contracts and is cost neutral. This extension is required in order to allow time to tender for new single joint housing support and social care contracts in line with Hampshire's approach to Extra-Care housing and to comply with OJEU procurement principles and Hampshire Contracts Standing Orders.

4.11. In addition, at Barfields in Lymington and Laburnum House in Eastleigh, within the existing contracts, day time domiciliary care services are currently purchased for older people living in the immediate neighbourhoods. This commissioning approach facilitates meeting key national indicator targets, the long term strategic approach to a new generation of housing support and care to older people, maximises service provider capacity, reduces the use of motorised transport and secures best value to the Department.

4.12. The enhanced Extra-Care housing scheme at Place Court, Aldershot, is to remain outside of this tendering exercise; instead the current night time care contract which is extant until May 2010 is to be extended until the end of March 2012, to align it with the current Supporting People contract.

5. Legal Implications

5.1. The proposals to tender the contracts for these schemes are compliant with Hampshire County Council Standing Orders, and are subject to the European Union (EU) Procurement Directives (current regulations 31 January 2006) as according to Part B services.

5.2. The proposals to extend the existing contracts for the Enhanced schemes meet the single tender criteria as these are interim arrangements while the services are being reviewed and in transition prior to alignment with Supporting People and delivered through single joint contracts. Extension also ensures continuity of provider to the users of the service for this transition period prior to the new contract.

5.3. All contracting for the joint care and support contracts will be done in line with the Supporting People procurement process.

6. Review of Other Options

6.1. Due to the need for compliance with both County Standing Orders, and The European Union (EU) Procurement Directives (current regulations 31 January 2006), the option to tender these schemes becomes a necessity.

6.2. The option not to tender for these services, both in the new-build schemes and the enhanced schemes, is not available due to the value of the contracts.

Enhanced Schemes:

6.3. For the existing enhanced Extra-Care schemes, the option of tendering individually for the day care, night care and support elements of each scheme has been considered, and rejected on the grounds that:

a) It is not in line with Hampshire's approach to contracting services within Extra-Care schemes.

b) It will offer no economies of scale and no opportunity to achieve benefits in terms of consistency of care and support provision such as are outlined in this report.

7. Recommendations

It is recommended that the Executive Member for Adult Social Care approves:

7.1. That care and support can be delivered through a joint single contract for each Extra-Care scheme.

New-Build Schemes:

7.2 . The approach to tender for the provision of 24-hour care and support for two new-build Extra-Care Housing schemes at Basingstoke and Fleet.

7.3 The maximum annual cost of the contracts for provision of care and support for the two new-build Extra-Care developments is agreed, as set out in Appendix C (Confidential).

Enhanced Schemes:

7.4. The approach to replace the current contracts with a single contract covering care and support for each of the eight individual enhanced Extra-Care schemes.

7.5 The maximum annual cost of the contracts for provision of care and support for the eight existing enhanced Extra-Care schemes is agreed, as set out in Appendix C (Confidential).

7.6 The extension of the current contracts within the enhanced schemes, due to expire at the end of March 2010 to the end of March 2011.

7.7 The extension of the night time care contract, at Place Court, until the end of March 2012.

7.8 The permission to tender the linked contracting for daytime domiciliary care services in the neighbourhoods surrounding the Extra-Care schemes at Barfields in Lymington and Laburnum House in Eastleigh. The costs of these services are already contained within the current contracts.

All Schemes:

7.9. That the length of each contract will be 3 years, with the option to extend each contract by an additional 2 years.

7.10. That the tendering for these contracts will be done in line with OJEU rules and Hampshire Contracts Standing Orders.

7.11 That all contracting for the joint care and support contracts will be done in line with the Supporting People procurement process.

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy

Other Significant Links

IMPACT ASSESSMENTS:

1. Equalities Impact Assessment:

A comprehensive Equalities Impact Assessment on Extra-Care Housing has been carried out and there are no adverse impacts in terms of equality or inclusion. Input will be sought however, from the Equality and Inclusion team in developing the Referrals and Allocations Policy for the Extra-Care schemes.

It should be noted that Extra-Care Housing within Hampshire is aimed at vulnerable people over the age of 55, and where appropriate their partners and carers, in order to provide them with the housing, support and care that they need to enable them to live in a home of their own and maintain their independence for as long as possible.

Hampshire Adult Services, working in partnership with the Borough and District Councils, NHS Hampshire and third party partners (registered social landlords, care and support providers) ensures through its referrals and allocations process, that all service users have equality of access to Extra-Care Housing, in accordance with the guidelines contained within the Hampshire County Council Guide to Designing Extra-Care Housing and The Partnership for Extra-Care Housing in Hampshire. Impact assessment will be incorporated into the nominations and referrals process.

In preparing this report, account has been taken of the requirements of the Corporate Equalities Plan and Race Scheme. The contract ensures that the provider will perform their duties with due regard, to eliminate unlawful discrimination and to promote equality of opportunity to all people and to promote good relationships between different racial groups.

2. Impact on Crime and Disorder:

The County Council has a legal obligation under Section 17 of the Crime and Disorder Act 1998 to consider the impact of all decisions it makes on the prevention of crime.

3. Climate Change:

All new-build Extra-Care schemes are being designed to facilitate the prudent and efficient use of resources and to encourage sustainable consumption and production.

Green travel plans are being developed for the new-build Extra-Care schemes. The aim is to reduce the necessity for private motorised transport and to drive down car use by care and support staff, as a result of having service-users concentrated in one location rather than spread across the community

CONFIDENTIAL APPENDIX

This appendix is classified as Exempt Information:

This appendix is classified exempt from being disclosed under Part 1 of Schedule 12A to the Local Government Act 1972 for the following reasons:

1) It contains information relating to financial or business affairs of any particular person (including the authority holding that information)

For information only:

The following has been considered in determining whether is was in the public interest to disclose this:

1. It is in the public interest NOT to have the information disclosed as disclosure would inhibit the Council from obtaining best value.

Extra-Care Housing Tendering and Procurement: Key Milestones

Affordable Extra-Care Housing Schemes in Hampshire

* Approval to tender for care and support received in June 2009.