URL: https://councillors.knowsley.gov.uk/ieDecisionDetails.aspx?ID=7595

Decision Maker: Executive Director Resources (Stephan Van Arendsen) and Executive Director Health & Social Care (Sarah Smith)

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: The purpose of the report is to seek approval in accordance with Public Contract Regulations 2015, Regulation 72(1)(e) to modify thirteen Adult Social Care contracts , as detailed in appendix A, be modified by price to have their fee rates increased to levels that allow for the Real Living Wage to be passed onto their care staff, and have their terms amended to stipulate that providers pay their care staff at Real Living Wage for 2025/26 financial year.   This modification is justified as the requirements of Public Contract Regulations 2015 Regulation 72(1)(e) are met as follows:     72. (1) Contracts and framework agreements may be modified without a new procurement procedure in accordance with this Part in any of the following cases:—   (e) where the modifications, irrespective of their value, are not substantial within the meaning of paragraph (8) In this instance, the proposed modifications would not (a)  render the contracts materially different in character (b)  introduce additional conditions that would have influenced the conduct or outcomes of the original tender processes (c)  change the economic balance of the contracts in favour of the contractors (d)  does not extend the scope of the contracts considerably does not involve new contractors replacing those originally awarded contracts.

Content: The purpose of the report is to seek approval in accordance with Public Contract Regulations 2015, Regulation 72(1)(e) to modify thirteen Adult Social Care contracts , as detailed in appendix A, be modified by price to have their fee rates increased to levels that allow for the Real Living Wage to be passed onto their care staff, and have their terms amended to stipulate that providers pay their care staff at Real Living Wage for 2025/26 financial year.   This modification is justified as the requirements of Public Contract Regulations 2015 Regulation 72(1)(e) are met as follows:     72. (1) Contracts and framework agreements may be modified without a new procurement procedure in accordance with this Part in any of the following cases:—   (e) where the modifications, irrespective of their value, are not substantial within the meaning of paragraph (8) In this instance, the proposed modifications would not (a)  render the contracts materially different in character (b)  introduce additional conditions that would have influenced the conduct or outcomes of the original tender processes (c)  change the economic balance of the contracts in favour of the contractors (d)  does not extend the scope of the contracts considerably does not involve new contractors replacing those originally awarded contracts.   (i)             That, in accordance with Public Contract Regulations 2015, Regulation 72(1)(e), thirteen Adult Social Care contracts as detailed in appendix A, be modified by price to have their fees rates increased to levels that allow for the Real Living Wage to be passed onto their care staff, and have their terms amended to stipulate that providers pay their care staff at Real Living Wage for 2025/26 financial year;   (ii)            That all fee rates payable by the Council are amended through contract modifications, and that one-off payments will be made to providers of an amount equal to what they would have been due had their respective contracts been modified with effect from 1 April 2025; and   (iii)           That the Procurement Team be authorised to issue the relevant contract modification documentation.     Do Nothing: This option was considered and rejected because the Council wants to ensure that the Real Living Wage is passed onto front line staff who are supporting the delivery of care and support to some of the most vulnerable people in our community.  Without the modifications to the contracts, the Council cannot ensure full compliance with this stipulation is fully complied with.   Seek Competition (Quotation / Tender): Each of the contracts under this modification have been tendered for as part of a fair and competitive process.  As each contract expires, they will be re-tendered as per the Council procurement rules at that time.  This modification seeks to ensure that all current contracts can ensure care staff are paid fee rates that allow them to pay the Real Living Wage to their staff.  All contracts are performing at a satisfactory standard and there was deemed no need to complete a competitive exercise for this reason at this time.

Date of Decision: September 1, 2025