Decision details

This report seeks approval to utilise the clause within a current contract for dispersed supported housing service for young people for a period of up to one year commencing  2^nd February 2019. 

The current contract provides support accommodation in a range of properties dispersed across the City and includes a small transitional landlord service for young parents.  The current contract price is £455,000 p.a.

The current contract was let in 2015 for three years with the ability to extend for a further two years, one year at a time.  The contract was extended for one year earlier this year when we implemented cost effective measures by reducing the contract price and reducing or replacing properties of poor quality or in areas of high concentration of supported housing.  We are seeking to extend the contract for a further year on or before 1^st February 2020, with a break clause to terminate the contract on 30^th September, if required.

A wider review of young people’s support contracts is underway.

The current contract has provision for:

• 95 young people, including at least 6 young parents in dispersed accommodation
• 10 young parents in transitional landlord provision
• Minimal short-term resettlement support.

(i) That the contract with Depaul UK, be extended for up to one year  with effect from 2nd February 2019 at the contract price of £455,000 p.a; and

(ii) that the contract with Depaul UK be amended to include a break clause that permits termination on 30 September 2019, if required.

The Council remains committed to the provision of housing related support for young people and approval of the extension of the current contract will enable continuity of support to vulnerable young people whilst the wider review is underway. 

This service is included within the budget for services commissioned by the Housing Independence Service for 2018-19 and within the budget forecast for 2019-20.

Depaul UK has been running the young persons’ dispersed supported housing service for nearly 4 years since winning the contract through an open tender process in 2014. On the back of this contract DePaul have also fund raised and brought a Night Stop Service into Sheffield to fill a service gap.  The current contract which expires on 1st February 2019 includes the option to extend the contract for a further period of up to 12 months.  The contract continues to represent value for money. 

The alternative options are:

• To allow the contract to terminate and not utilise the extension clause within the contract.  This would leave up to 120 young homeless and vulnerable people a year, including young parents and care leavers, without access to supported accommodation and ongoing resettlement.  This may lead to a downward spiral in the health and wellbeing of these young people and a rise in antisocial behaviour, medical admissions and offending. It would certainly lead to pressures on the Council’s Homeless Services and Children and Young People’s Services as some of the service users will be care leavers.  The alternatives available would be more expensive spot purchase arrangements for care leavers.

·         To go out to tender for one year while the review of the services take place.  This would be unnecessary and costly in terms of capacity and resources in all teams and will not be the most efficient way of meeting value for money.  The current contract terms were drawn up with the intention of utilising the extension clause to prevent unnecessary expenditure.