Decision details

The Cabinet Member authorised extension of the Peterborough Serco Strategic Partnership Services Agreement with Serco Limited for a period of ten years between 28 November 2021 to 27 November 2031.  The estimated value of the ten year extension shall be up to a maximum of £105,000,000.

7.1      In 2015, the Cabinet Member (MAY15/CMDN/47) delegated authority to the former Corporate Director Resources to finalise the contractual arrangements to exercise the option to extend the contract by ten years.  The reason for the recommendation is in order to reconcile the original decision with the constitutional requirements of the Council in relation to authority to extend the PSSP Services Agreement due to the value of the ten year extension exceeding £500,000.

7.2      The extension to the PSSP Services Agreement is in acknowledgement that both the Council and Serco are working to achieve a long term partnership.  This is considered the best outcome for the Council in terms of the services provided under the strategic partnership representing value for money and the future direction of the Council, and the parties’ agreement to work in partnership to ensure the key objectives of the PSSP Services Agreement are met.

7.3      The extension of the PSSP Services Agreement shall ensure that arrangements are in place to enable the Council to secure its service delivery objectives, offering the best approach for the Council’s requirements.

8.1      To not extend the PSSP Agreement for the ten year extension period.  However, the parties acknowledge they are working together to achieve a long term partnership and the ten year extension period provides the best value solution for enabling the Council to secure its service delivery objectives and deliver measurable savings against base-line budget.

8.2      To exercise the option to extend the PSSP Services Agreement in two tranches each of five years prior to the agreement’s expiry date in 2021.  This was discounted on the basis the parties are working to achieve a long term partnership and the benefits this long term partnership can bring to ensure best value solutions.

8.3      Consideration of an alternative model.  This was discounted on the basis the strategic partnership was competitively procured for a potential twenty years of service delivery and it is in the Council’s best interests to continue the partnership in order to secure best value for its service delivery objectives. 

None.

·         Key Decision reference – MAY15/CMDN/47

·         PSSP Services Agreement dated 25 November 2011 and associated contractual documentation