Portsmouth City Council Home Care Re-Commissioning Consultation (Second Event)

Descriptions

1. Introduction & Background Information

Portsmouth City Council (the 'Council') is undertaking further Preliminary Market Engagement (PME) as part of a strategic review of delivery options in providing domiciliary care services, mainly within the Portsmouth boundary (PO1 To PO6) but occasionally in the surrounding area.

The Council has a duty to provide a range of services to individuals in their own homes to help them live independently and safely. It is an alternative to residential or nursing care and can be tailored to suit short-term, long-term, or specialist needs.

The nature of support required will be tailored and aimed at maintaining individuals in a reasonable state of health, hygiene and safety in their own home. Support packages will vary in size based on the individual needs and may range from minimal support up to highly specialised and complex needs.

The Council currently spends in the region of £20M per annum in providing Domiciliary Care across Portsmouth.

The Council needs to address the current situation regarding market saturation and review the commissioning model in the most cost-effective manner possible. The Council have conducted research with other Local Authorities to explore different models of commissioning home care and want to continue to engage with providers for their input.

The event is a genuine opportunity to have your voice heard and contribute to shaping the future of home care services in our community focusing on the delivery of quality care.

2. Current Service Requirements

Domiciliary care is the most common means by which the Council's Adult Social Care delivers its statutory duty to meet people's care needs. Clients typically access domiciliary care following an assessment of need by either a community social work team, the Adult's Intermediate Care Team or the Community Reablement Service. The level and type of support required is determined in line with the individual's support plan.

The purpose of the domiciliary care service is to complement the Councils priorities by ensuring that:

• People live longer and have healthier lives.

• People are safeguarded in vulnerable situations.

• Independence is promoted for older people.

• People are enabled and healthy lifestyles are promoted.

• Independence for people with disabilities is promoted.

Providers are given an assessment, which will detail the wishes, needs and outcomes required by the individual service user. Support packages vary in size based on the individual needs and range from minimal support up to highly specialised and complex needs.

Service users are ordinarily a resident in the city of Portsmouth and/or the responsibility of the Hampshire and Isle of Wight Integrated Care Board (HIOWICB). The individual will be assessed as requiring health and/or social care services.

Description of the procurement

1. Framework Agreement Requirements and Operation

The Council previously operated a Dynamic Purchasing System (DPS) for the provision of domiciliary care services. However, in line with the Procurement Act 2023 and the associated Light Touch Regime, the Council intends to establish a new framework agreement to replace the existing DPS arrangement.

The Council is developing the design and operational requirements for the proposed framework agreement. The following areas are still under consideration:

• Conditions of Participation: Entry requirements and minimum standards for participation

• Lot Structure: An initial proposal includes four potential lots (though the Council may create new lots over the course of the framework to consider the changes in demand and impacts of LGR):

o Lot 1 - Domiciliary Care: Standard

o Lot 2 - Domiciliary Care: Complex

o Lot 3 - Sitting Service

o Lot 4 - Live-in Care

• Provider Limits: The Council is exploring whether to restrict the number of suppliers per lot to ensure manageability and quality.

• Framework Term: A base term of four years, with options to extend and re-open the framework to allow new entrants.

• Geographical Requirements: Providers must have a local office or operational base to ensure responsive and effective service delivery across the contract area.

• Pricing Models: Consideration is being given to alternative pricing mechanisms tailored to each lot.

• Provider Ranking: Providers will be ranked within each lot based on a combination of price and quality.

• Call-Off Mechanism: Contracts will be awarded based on Provider application and ranking under the relevant lot, rather than a rotational call-off system.

• Dynamic Ranking: The framework may include a dynamic supplier ranking mechanism, allowing providers to move up or down the ranking based on performance, change in rates or other criteria.

• Assessment of Quality and Contract Management: the use of PAMMS and how/when reviews are undertaken with Providers.

The Council will publish the details of the proposed framework operation, establishment and call off mechanism via a separate Preliminary Market Engagement notice, before the publication of the tender notice.

It should be noted that, due to Local Government Reorganisation (LGR), the current domiciliary care provision is focused predominantly on the Portsmouth area. The future framework may be designed to accommodate changes arising from LGR and any potential expansion of service coverage, which could include for the creation of area specific lots.

The Council will run this procurement using the Competitive Flexible Procedure, under the Procurement Act 2023, whilst following the provisions allowed for contracts under the light touch regime.

The estimated total value of this framework agreement for Domiciliary Care services is approximately £240. million over an 8-year period. This figure reflects Portsmouth City Council's current annual expenditure of approximately £20 million, adjusted for projected inflation of 3.5% per annum over the term.

In addition, from year 4 onward, the framework value accounts for potential expansion under Local Government Reorganisation (LGR), which may result in the new unitary authority assuming responsibility for Domiciliary Care services in the neighbouring areas. This expansion is anticipated to increase the annual value by approximately 50%, subject to confirmation of future service delivery arrangements.

2. Framework Establishment Procedure

The Council anticipate the Competitive Flexible Procedure will be akin to the Restrictive Procedure under the Public Contracts Regulations (2015), with two separate stages -

Stage 1 - Initial Selection

The Council will issue a Tender Notice under the Procurement Act 2023 outlining the key details and requirements, including the overview of the procurement process & associated programme, value of the opportunity, scope of the contracts, associated contractual terms, minimum levels of technical experience & accreditations and evaluation & award criteria.

As part of this process, suppliers will be required to meet Conditions of Participation before their tender submissions are assessed. These conditions will relate to the supplier's legal and financial standing and technical ability to deliver the contract, which is likely to include the successful delivery of current and/or previous contracts of a similar value and scope as the Council's.

In addition, all suppliers and proposed subcontractors involved with the service delivery will be subject to assessment against the mandatory and discretionary exclusion grounds.

Mandatory exclusion grounds include, but are not limited to, convictions for offences such as fraud, bribery, terrorism, and cartel activity. Where a supplier meets a mandatory exclusion ground, the Council is legally required to exclude them from the procurement process.

Discretionary exclusion grounds may include issues such as poor past performance, conflicts of interest, or evidence of unethical conduct. The Council will assess these on a case-by-case basis and may choose to exclude a supplier where there is a significant risk to the integrity or delivery of the contract where insufficient evidence is provided in relation to self-cleaning.

Any interested suppliers will need to register on the governments Central Digital Platform for the Council to review any potential grounds for exclusion and a debarment check. The Central Digital Platform is live and information on how suppliers can register can be found using the following link -

https://www.gov.uk/government/publications/procurement-act-2023-short-guides/suppliers-how-to-register-your-organisation-and-first-administrator-on-find-a-tender-in-three-easy-steps-html

Only those suppliers who successfully meet the Conditions of Participation and are not subject to exclusion grounds will be invited to stage 2 of the process.

Stage 2 - Invitation to Tender (ITT)

The second stage, shortlisted suppliers proposals will be evaluated based on both cost and quality criteria to ensure the selection of providers who can deliver best value and high-quality outcomes. At the second stage of the procurement process, the Council are considering assessing tender submissions in accordance with the Provider Assessment and Market Management Solution (PAMMS).

Details of the evaluation criteria, including the relative weighting of cost and quality, will be set out in the tender documentation.

The Council envisages undertaking the future procurement process in line with the following draft summary procurement programme, however it should be noted that the dates below are purely indicative and may be subject to future change.

• PME Quality Event - 13th October 2025

• PME Supplier Feedback - end of October 2025

• Issue Tender Notice - November 2025

• Contract Award Notice issued - June 2026

• Framework Established - July 2026