URL: https://democracy.croydon.gov.uk/ieDecisionDetails.aspx?ID=2746

Decision Maker: Corporate Director of Resources (Section 151)

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: The decision will be to extend the value of the existing contract for the supply of temporary workers via the ESPO Mstar 3 Collaboration Lot 1 while procurement for the new contract is concluded.   The current value of the contract is £150m and based on current spend it likely to be exceeded by the end of June. Currently there remains £11.1m on the existing contract value. The council is currently spending approximately an average £880k per week on agency workers this gives the council approximately 12 weeks value left on the contract.     Recommendation: To agree an increase in the value of the existing contract with Adecco, called off from the ESPO Mstar3 Framework Collaboration Lot 1 Temporary workers Staffing, of £20m making the new contract value £170m, an increase of 20% above the original award value.

Content: The decision will be to extend the value of the existing contract for the supply of temporary workers via the ESPO Mstar 3 Collaboration Lot 1 while procurement for the new contract is concluded.   The current value of the contract is £150m and based on current spend it likely to be exceeded by the end of June. Currently there remains £11.1m on the existing contract value. The council is currently spending approximately an average £880k per week on agency workers this gives the council approximately 12 weeks value left on the contract.     Recommendation: To agree an increase in the value of the existing contract with Adecco, called off from the ESPO Mstar3 Framework Collaboration Lot 1 Temporary workers Staffing, of £20m making the new contract value £170m, an increase of 20% above the original award value. RESOLVED: To agree an increase in the value of the existing contract with Adecco, called off from the ESPO Mstar3 Framework Collaboration Lot 1 Temporary workers Staffing, of £20m making the new contract value £170m, an increase of 20% above the original award value.   The Council presently has a contract with Adecco Ltd to supply temporary workers through the ESPO MSTAR3 Framework (Decision ref 2422EM), which runs to November 2026. This provides the council with resources from Adecco to support the engagement and management of agency workers, including a VMS for managing workers’ timesheets, placements, and compliance documents (Beeline), as well as management information and supporting information. This arrangement has been effective at providing temporary resources to support the council’s needs, providing a competitive management fee and agency markup rates. Following agreement of a procurement strategy (Decision ref PB-2526-000038-S KDN 0525CMRES) the council is currently procuring a replacement service which will form two contracts – one to provide temporary workers and interims and one to supply statement of works to the council. An award report will be forthcoming however it is necessary to vary the contract to allow for both the end of the current contract and suitable mobilization for the new arrangements. The current contract does not provide for early termination if the contract exceeds the approved and published contract value, and the current procurement relating to the new contract is still under finalisation. Therefore, it is recommended to vary the contract value further to cover the period up to the end of the current contract and allow the procurement to be finalised. Note the contract value was extended in 2025 (Decision Ref 0225ACE) The alternative option is not to agree a variation which would give rise to a risk of breaching procurement legislation, since, at the current rate of expenditure, the contract value of £150m will be reached by end of June 2026.  OPTION 1   Option Do Nothing   Feasibility ·         Is this option deliverable within time, resource and legal constraints? This decision could be taken  ·         Are suppliers or partners available (if relevant)? Not relevant ·         Would the Council have the capacity or capability to deliver the option? See below ·         Note any non?financial risks or constraints. Knock on effect will impact council capacity to deliver services if temporary staff have to be released   Benefits and Drawbacks Set out the key advantages and disadvantages. No perceived advantages The current contract does not provide for early termination if the contract exceeds the approved and published contract value, and the current procurement relating to the new contract is still under finalisation. would give rise to a risk of breaching procurement legislation, since, at the current rate of expenditure, the contract value of £150m will be reached by end of June 2026. During the development of the procurement strategy, a risk was identified that the current contract does not provide early termination if the contract value exceeds the published value and hence the requirement to vary the contract while the procurement process is concluded.   Overall Assessment Not Recommended for reasons given above   OPTION 2 Option Re?procure a contract or framework or partnership   Feasibility   ·         Is this option deliverable within time, resource and legal constraints? Not feasible as a new procurement. Note a procurement has already been conducted and award and mobilisation is imminent ·         Are suppliers or partners available (if relevant)? Yes ·         Would the Council have the capacity or capability to deliver the option? Yes but not within current timescales ·         Note any non?financial risks or constraints A procurement has already been conducted - just needs award and mobilisation of new arrangements.   Benefits and Drawbacks Set out the key advantages and disadvantages. No advantage as a procurement has already been conducted Overall Assessment Not Recommended for reasons set out above OPTION 3 Option In?source Feasibility ·         Is this option deliverable within time, resource and legal constraints? No ·         Are suppliers or partners available (if relevant)? Not applicable ·         Would the Council have the capacity or capability to deliver the option? No   Benefits and Drawbacks Set out the key advantages and disadvantages. There are no advantages for this impractical option. A new contract is imminent following a recent procurement.   Overall Assessment Not Recommended for reasons given above      

Date of Decision: June 26, 2026