The Committee received a report which recommended the establishment of a pseudo–Dynamic Purchasing System (DPS) under the Light Touch Regime to deliver emergency accommodation for families and vulnerable people placed by the Council’s Housing Needs department. This would replace existing processes and formalise arrangements between the Council and Providers. The aim of the DPS was to ensure a continuity of supply of good quality privately managed properties for households placed into emergency accommodation by the Housing Needs department, whilst guaranteeing that the Council was meeting its legal requirement in the procurement of its services and delivering of value for money.

The report explained that all Local Authorities had a duty to provide interim accommodation to certain households whilst investigating their circumstances and temporary accommodation to applicants who were homeless, eligible for assistance, in priority need and not intentionally homeless. In addition, the Council held discretionary powers which could be used for the provision of emergency accommodation to individuals and couples who were not owed a statutory duty, in certain circumstances, such as during periods of severe weather as part of the Council’s Severe Weather Emergency Protocol (SWEP) or in response to an emergency or disaster that was a danger to life as seen during the Covid pandemic.

The Council currently used a range of accommodation to meet both the interim and temporary accommodation needs for those placed into emergency accommodation, including designated blocks of flats, purpose constructed modular units, permanent stock and paid nightly emergency accommodation.  Wherever possible the Council avoided the use of paid nightly accommodation provided by an external landlord, including Bed and Breakfast (B&B), however, due to ongoing demand there remained a need for its use as emergency accommodation for homeless households.

The report added that there had been a steady increase in the numbers approaching the Council due to the cost-of-living increase, fuel prices and rising interest rates, putting significant financial pressures on owner occupiers, landlords and tenants, the lack of affordable accommodation in the private sector for people facing homelessness and fewer options to assist households in crisis.  The Domestic Abuse Act 2021 had made changes to provisions available to protect survivors and had expanded the definition of domestic abuse. It had also made those approaching as homeless as a result of domestic abuse automatically priority need and entitled them to interim accommodation duties.  There had also been an increase in approaches from those fleeing conflict.

The report also stated that here had been increased grant provision from DLUHC to specifically offer short-term discretionary paid nightly accommodation for those who slept rough to encourage engagement with supported accommodation as well as reconnections to other areas with the overarching aim of reducing rough sleeping numbers in the Borough.  Wherever the Housing department used externally sourced accommodation it was subject to a programme of initial checks by the Housing Needs Department to provide assurances for the safety and wellbeing of tenants. However, there were currently no formal contractual arrangements in place between the Council and providers to manage the procurement and ongoing monitoring of the accommodation.

The report explained that arrangements for procuring and managing emergency accommodation had emerged over time and whilst they were robust, they had not been subject to formal procurement processes. Formalising the process of procurement of accommodation was important for:

·     Maintaining standards of accommodation within a cohort of landlords who were contractually required to provide accommodation to meet minimum standards regarding property condition, maintenance, and management. The DPS would aid the Council to manage any quality through proportionate entry standards of providers and through ongoing contract monitoring;

·     Establishing a pool of providers who were able to provide accommodation as demand dictated. There would be no limit on the number of providers joining the DPS and no obligation on the Council to use any unrequired accommodation. This would allow the Council to manage fluctuations in demand providing flexibility in sourcing and reducing the use of accommodation as required;

·     Providing a formal system to allow the Council to direct the market in terms of type and location of accommodation and provide greater clarity to providers regarding projected need;

·     Replacing and formalising current arrangements, ensuring that the Council was compliant with the Council’s Contract Procedure Rules, EU regulations for the procurement of services and the Public Contracts Regulations 2015.  This system would also improve operational process and efficiency, saving officer time and making better use of Council resources;

·     Providing a prescribed pricing schedule that would act as a guide for providers to encourage them to set their rates competitively and in line with other landlords. This would set expectations for providers in terms of charges and would ensure that the market remained more stable if there were times of increased demand;

The report also explained that the DPS would provide a mechanism for any providers that fell short of the expected standards to be suspended whilst quality issues were addressed.  The DPS would be established in early 2024 and run for a period of five years. The DPS would operate by running a fully compliant open tender procedure to accredit and enrolling Providers onto the DPS to ensure that only Providers that met the Council’s standards could join. New Providers could apply and be enrolled during the DPS’ period of operation providing they could meet the required standards. There would be a transition period of up to six months providing time for existing placements to be moved onto Providers within the new Scheme.

Resolved:

(1)           That the Assistant Director of Housing and Communities, in consultation with the Lead Councillor for Housing and the Director of Finance be given delegated authority to approve the establishment of a pseudo–Dynamic Purchasing System (DPS) under the Light Touch Regime for the provision of emergency accommodation for a period of five years.

(2)      That the Assistant Director of Housing and Communities be authorised to (i) enter into call-off contracts with the successful providers and (ii) directly award placements on a spot contract basis where suitable arrangements cannot be made via the DPS; or where crisis or emergency circumstances dictate that it is not possible to do so via the DPS during its lifetime for the provision of emergency accommodation.