This report is to authorise the Rough Sleeping Initiatives Team to award a 12-month extension to St Mungo’s to deliver a Flexible Response Service for Rough Sleeping support contract and a Housing First and Couples Move-on Accommodation support contract.

The Committee received a report seeking approval for the Rough Sleeping Initiatives Team to award a 12-month extension to St Mungo’s to deliver a Flexible Response Service for Rough Sleeping support contract and a Housing First and Couples Move-on Accommodation support contract.

The report explained that contracts continued to be grant funded by the Ministry for Housing, Communities and Local Government (MHCLG) via the Rough Sleeping Prevention and Recovery Grant (formerly named Rough Sleeping Initiative) and the Rough Sleeping Accommodation Programme (RSAP). The change in Government and delays in funding announcements created uncertainty around grant award and application process for 2025/26. An announcement had been made on the 18 December 2024 that no bidding process was required, and 2025/26 amounts were being awarded based on 2024/25 calculations.

The report noted that without prejudice scoping and costings negotiations for 2025/26 had been undertaken with existing provider St Mungo’s and Value for Money regarding each contract value had been ensured.  Extending contracts whilst awaiting future political and funding announcements, rather than undertaking a procurement exercise which would require extensive Officer resource across Council departments, provided value for money and was appropriate for these circumstances.

Revenue funding to continue these contracts beyond 4 June 2026 was uncertain. Central Government were expected to publish their new homelessness and rough sleeping strategy in Spring 2025. Overall grant funding amounts, guidance on how local authorities could bid and timelines for confirmation of award should follow. Once made clear, Officers would undertake an open tender exercise to procure support and accommodation contracts.

Resolved –

(1)         That the Interim Assistant Director for Strategic Housing, Housing Needs and Communities, in consultation with the Lead Councillor for Housing, the Assistant Director for Legal and Democratic Services and the Director of Finance, be delegated to:

a)               Award a 12-month contract extension with St Mungo’s for the provision of a Flexible Response Service for Rough Sleeping up to the value of £0.673m.

b)               Award a 12-month contract extension with St Mungo’s for the provision of Housing First and Couples Move-on Accommodation contract up to the value of £0.337m.