Decision details

To approve the novation of the Council’s Personal Care and Support Framework Agreement and all existing call off contracts with Housing and Care 21 to Carewatch Care Services Limited

The Council has Framework Agreements with a number of providers for the provision of personal care and support (homecare) services. There are no fixed contracted hours with the providers on the Framework Agreements, and instead the Council calls off from the Framework in relation to specific packages for service users as and when required, and then pays the providers in accordance with the contracted hourly rate.

The Framework Agreements have an initial term of 20 January 2014 to 19 January 2016 and provide the option to extend by a further period of 2 years (by two 12 month periods). CMDN JAN14/CMDN/01 provided authority for the Council to enter into the Framework Agreements and also authorises the option to extend the contracts for two further 12 month periods (up to 19 January 2018). The expenditure for the extension periods were approved by CMDN JAN16/CMDN/07.

Housing and Care 21 have been a provider on the personal care and support Framework Agreement since January 2014. and support 55 people to remain in their own home, at an approximate annual cost of £400,000.   

Housing and Care 21 informed the Council that they intend to concentrate investment in their homecare business in four key hub areas nationally. Peterborough does not fall within these identified hub areas.

Housing and Care 21 sold part of their business and transferred the operation of contracts which fall outside of their four key hub areas, to Carewatch Care Services Limited some time ago and wish to enter into Deed of novation to novate the personal care and support Framework Agreement and all existing call off contracts, for this purpose to formalise the transfer with the Council. 

Entering into the Deed of novation will result in a change of provider which is a modification of the Framework Agreement and the call off contracts. Regulation 72 of the Public Contracts Regulations 2015 confirms that a framework agreement may be modified without a new procurement procedure where a new provider replaces the one who had initially been awarded the framework agreement, as a consequence of universal or partial succession into the position of the initial provider, following corporate restructuring, including takeover, merger, acquisition or insolvency, of another operator that fulfils the criteria for qualitative selection initially established, provided that this does not entail other substantial modifications to the framework agreement and is not aimed at circumventing the application of the Regulations.

Evidence has been provided demonstrating that there was a genuine corporate restructuring and that Carewatch Care Service Limited fulfil the criteria for qualitative selection initially established (when the Framework Agreements were originally procured). The novation will not entail any other modifications to the Framework Agreement.

Members of Housing and Care 21’s staff transferred to Carewatch Care Services Limited under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), ensuring consistency for service users currently being supported by this service.  Direct payments remain an option for anyone wishing to receive their support from an alternative provider.

Transferring all care packages (call off contracts) provided by Housing and Care 21 to one provider enables consistency for service users, to increase the likelihood that they will be able to continue to receive care and support from their previous carers, due to the carers transferring under TUPE to the same provider. If Housing and Care 21’s existing care packages were to be distributed to various providers on the Framework, then there would be a risk that service users may not continue to receive care from their existing carers.

It is vital to ensure the care and support needs of vulnerable adults continue to be met and  novating the Framework Agreement and call off contracts to one provider avoids the risks associated with requesting several existing providers on the Framework to commence the care packages, as freeing up capacity in the current market to meet the required demand may be problematic. 

Entering into the Deed of novation will allow Carewatch Care Services Limited to provide the required services in respect of Housing and Care 21’s existing packages of care (call off contracts), and also allow the Council to call off from the Framework Agreement in relation to specific packages for service users as and when required from Carewatch Care Services Limited in the future, providing additional capacity in the current market.

The other option that was considered is to terminate all existing packages of care and re-let them with another provider(s) under the framework agreement. Housing and Care 21 indicated that they would cease their operations in Peterborough, and therefore them continuing with the existing packages of care was not an option. This would mean that alternative care providers would need to be sourced by the Council for care packages exceeding 550 care hours per week.  Capacity has been an issue in recent months with alternative providers on the personal care and support (homecare) Framework and it may be difficult to identify providers who can meet demand within the required timeframe.

Do nothing: It is understood that Housing and Care 21 sold part of their business to Carewatch Care Services Limited some time ago, and that their staff and operations have already transferred. If the deed of novation is not put in place to formalise and document the novation of the Framework Agreement and call off contracts, and nothing is done, this means the documentation will not represent what is occurring in reality and could represent a risk to the Council of not having any formalised written contractual documentation in place with Carewatch Care Services Limited.

None

CMDN JAN14/CMDN/01

CMDN JAN16/CMDN/07