Issue - decisions

GW2 Mental Health Supported Housing Provision

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17/03/2026 - Gateway 2: Mental Health Supported Housing Provision

RESOLVED:

1. That the award of eight contracts for the delivery of mental health supported housing provision be approved. The contracts will commence on 6 July 2026, for a period of either four or five years as shown in the table in paragraph ?2 of the report, with an option to extend for a further two years, for an estimated maximum annual contract value of £1.95m and a whole life contract value inclusive of extensions of £12.88m.

2. Contracts recommended for award:

Four-year contracts to align with Integrated Care Board (ICB) contracts

Provider	Lots	Sub-lots/ scheme	Initial Contract Term (years)	Annual Contract Value	Initial Contract Value	Total Contract Value (4+ 2-years)
Turning Point Services Ltd	Lot 1 - High needs	Lot 1b	4	£384,120	£1,536,480	£2,304,720
Hestia Housing and Support	Lot 3 - High needs (24-hour support)	Lot 3	4	£386,287	£1,545,148	£2,317,722
Totals				£770,407	£3,081,628	£4,622,442

Five-year contracts

Provider	Existing Buildings Available (Y/N)	Lots	Sub-lots/ scheme	Initial Contract Term (years)	Annual Contract Value	Initial Contract Value	Total Contract Value (5+ 2-years)
Peabody Trust	N	Lot 2 - Medium support	Lot 2a	5	£177,143	£885,715	£1,240,001
Southside Partnership	N	Lot 2 - Medium support	Lot 2d	5	£125,343	£626,715	£877,401
Hestia Housing and Support	Y	Lot 4 - Medium support	Lot 4a	5	£225,987	£1,129,935	£1,581,909
Southside Partnership	Y		Lot 4b	5	£196,467	£982,335	£1,375,269
Hestia Housing and Support	Y		Lot 4c	5	£243,757	£1,218,785	£1,706,299
St Mungo Community Housing Association	Y		Lot 4d	5	£211,123	£1,055,615	£1,477,861
	Totals				£1,179,820	£5,899,100	£8,258,740
	Total four- and five-year contracts				£1,950,227	£8,980,728	£12,881,182

3. That it be noted that one lot for short term medium support within this procurement was unable to be awarded due to the lack of quality bids. Available options, including conducting single supplier negotiations to award the contract, are currently under review.

4. That it be noted that the approval of any unawarded lot following the chosen procurement exercise will be approved by the strategic director for children and adult services, in consultation with the cabinet member for health and wellbeing for a period of five years with an option to extend for a further two years (5+2).

5. That it be noted that the total estimated maximum value for the contract not awarded is £193k per annum and a whole life contract value of £1.35m over the lifetime of the contract.

6. That the change to the procurement strategy within the gateway 1 (GW1) procurement strategy report as set out in paragraph ?13 of the report be noted.