Issue - meetings

Report CS16007

In view of procurement costs for temporary accommodation and forecast demand, it was necessary to source an adequate supply of temporary accommodation to meet requirements for the next three to five years.

It was recommended that L B Bromley enter into a new contract with Orchard and Shipman (the current contract expiring April 2016) for management leasing arrangements over a three year period, with an option to extend for two years. It was also proposed that other existing providers for private sector/housing association leased properties continue after their contracts with the Council expire in 2017.

Further units would also be necessary particularly with a declining availability of leased properties, a higher percentage of advance block bookings being preferred to ad-hoc nightly paid arrangements (the risk of over-booking being mitigated by an annual review of requirements).

Work was ongoing across London to drive down rates but given rising rental costs, inner-London boroughs were increasingly forced to place households in outer-London. This resulted in over 50% of L B Bromley temporary accommodation placements being out of borough. Such placements were not always cheaper and caused difficulties, including a risk of costly legal challenge.

Use of a Dynamic Purchasing System (DPS) would also enable continued access to a range of quality assured providers who had submitted indicative prices. The DPS would be advertised as two lots allowing the Council to call off a range of contracts, including short term nightly arrangements on a block booking and spot-purchase basis, and contracts for long term leasing/private sector units. The London Boroughs of Lewisham, Southwark, Lambeth and Croydon had also indicated an interest in joining with L B Bromley to create a regional DPS.

Further information related to block contracts for nightly paid accommodation and a new contract with Orchard and Shipman was provided under exempt proceedings for the meeting.

The Leader thanked the Assistant Director, Housing Needs for her work in this area.

RESOLVED that:

(1)  the Housing Division continue current arrangements with Housing Associations to access temporary accommodation through formal nomination agreements;

(2)  the Housing Division continue to pursue cost effective block contracts for temporary accommodation both in private sector leasing and nightly paid accommodation;

(3)  officers to set up a Dynamic Purchasing System (DPS) from which the Housing Division can procure both private sector leased and nightly paid temporary accommodation - all current providers being expected to sign up as providers on the DPS with the DPS being developed in collaboration with the South East London Housing Sub-region and L B Bromley being lead borough; and

(4)  a new contract with Orchard and Shipman be entered into for three years from 1^st April 2016 to 31^st March 2019 with the option to extend for a further two years - Orchard and Shipman being expected to sign up as a provider on the DPS.