Portsmouth City Council - Care and Support in Extra Care Housing - 2025
- Portsmouth City Council
Procurement identifier (OCID): ocds-h6vhtk-05111a
Description
Portsmouth City Council ('the council') has invited tenders for the provision of care and support in Extra Care Housing.
AWARD & STANDSTILL PERIOD
Following receipt of tenders on 25th July 2025 the Council has concluded the assessment process and issued assessment summaries to the successful and unsuccessful suppliers as required under Section 50 of the Procurement Act 23 (the 'Act').
Issuing of this Award Notice will now instigate the voluntary standstill period which will not be less than eight-working days (the Standstill Period), in line with section 51 of the Act.
The Council reserves the right to amend (extend) the Standstill Period if needed; if this right is exercised, the Contract Award Notice will be updated and affected suppliers will be notified accordingly.
After the Standstill Period has expired, and provided no legal challenge has been made by the end of the Standstill Period or any agreed extension, the Council intends to enter into contracts with the Successful Supplier. Following this, the Council also intends to publish a Contract Details Notice.
DESCRIPTION OF CONTRACT
The Council is responsible for four extra care schemes in the city. Extra care housing schemes in the city are a specialist sheltered housing provision designed to offer a safe, private and secure environment. Residents are able to maintain their independence by having their own home whilst having the benefits of having staff on hand 24 hours a day, 7 days a week.
The care staff deliver planned care, ad-hoc care support in response to emergencies or Tunstall calls (Tunstall is a call system that is placed in each flat and allows residents to call for assistance at any time of the day), and support with delivering and attending activities.
The current cost for delivering services across these four Extra Care schemes is approximately £3.5 million per annum. However, this value can fluctuate on an annual basis dependent on existing occupancy levels and the support needs of the residents.
The size of the block hours allocated to each scheme can also affect the value. Additionally, each contract will be subject to an increase in rates, which will be reviewed on an annually basis and has typically been based on the Retail Price Index.
The Council is awarding two contracts to two providers for two separate Lots -
Lot 1 - Brunel Court, Caroline Square and Milton Village - £2.2M per annum (1417 hours of planned care in total, plus block hours)
Lot 2 - Maritime House £1.4M per annum (960 hours of planned care, plus block hours)
The contract values included on each lot above are based on current levels of demand and the previous year's spend. However, the value of the opportunity can fluctuate dependent on the needs of the individuals, occupancy and the size of the block.
The contract term for both lots will be for 4 years with options to extend in increments to be agreed up to a maximum of 6 years. Both contracts will commence on 1st December 2025.
The total value of the opportunity will be in the region of £45.5M, when including all extension options, assuming each Extra Care facility remains in maximum occupation, the likely support needs of the residents and including any potential inflationary uplifts.
The Council estimate the total spend over the maximum extension period for each lot to be -
• Lot 1 - £27.9M
• Lot 2 - £17.6M
The contract allows for a nine month 'turnaround' period to address the existing issues in Extra Care in Portsmouth. The Council will pay a maximum of £75,000 per Lot to support turnaround of the Services, which are expected to be completed within nine months of the start of the contract.
A block number of hours is allocated per scheme to cover additional staffing requirements for Background Care and Support. The block will be set at 630 hours for Lot 1 (which includes 3 Schemes the hours may be used flexibly across the Schemes as required to meet the needs of each Scheme) and 294 hours for lot 2 for the duration of the turnaround period for both lots.
After this time and with supporting evidence the Service
Provider in discussion with the Service Purchaser is expected to review and right-size the block hours to a level that can support the safe delivery of care within a scheme. Evidence may include but will not be limited to:
• The volume of ad hoc support provided
• The volume of responses to emergency calls
• The provision of activities
As already identified above, the Council require the current service provisions to improve across all the sites, under both the lotting options. The Council are investing additional turnaround funding to improve the service provisions within the first nine to twelve months of the mobilisation of the new contract.
If a provider under either lot cannot satisfy the requirements to demonstrate the service has improved within this timescale, and the subsequent contract is to be terminated, the Council reserve the right to use any of the following options at their discretion to award a contract to an alternative provider -
• If the lot 1 provider fails to meet the agreed performance requirements, the Council reserves the right to award the contract to the lot 2 provider.
• If the lot 2 provider fails to meet the agreed performance requirements, the Council reserves the right to award the contract to the lot 1 provider.
• If a provider under lot 1 and/or lot 2 fails to meet the required performance standards,
the Council reserves the right to engage the next highest-ranked provider from the original tender evaluation for the relevant lot.
Should the next ranked provider decline the opportunity, the Council will proceed to engage with the subsequent ranked provider(s) within that lot, in order of ranking, until a suitable provider is secured.
In order for the Council to consider any direct award options, providers must continue to meet all minimum requirements as originally set out in the conditions of participation.
This includes maintaining compliance with applicable legislation, statutory guidance, and regulatory standards in force at the time of award. Providers must also remain responsive to any changes in law and associated regulations. Failure to meet these evolving requirements may disqualify a provider from consideration for direct award.
Providers will not be able to exceed the current applicable hourly rate when looking at any potential direct award options.
The Council cannot confirm whether any additional transformation funding will be available and to what level this could subsequently be.
During the contractual term of either lot 1 or lot 2, the Council reserves the right to engage alternative providers, as outlined above, should any capacity or capability issues arise with the incumbent supplier under the relevant lot. For example, if the Council has grounds to terminate a contract due to poor performance or a provider was to become insolvent, it may approach the provider under the other lot or engage with the next ranked provider(s) from the original tender shortlist, in order of ranking.
In circumstances where a contract award is required outside of the initial 12-month mobilisation period, the Council may award the subsequent contract either for the remaining term originally available to the incumbent provider or for a new initial term of four years, with the option to extend by a further six years. This flexibility ensures continuity of service and accommodates potential implications under TUPE regulations.
Should the Council need to take up any of the contingency options under either or both of the lotting options, this could increase the overall level of potential spend for the contracts to a total of £70.5M.
Notices
UK6: Contract award notice
- Notice identifier
- 2025/S 000-050913
- Published
- 22 August 2025, 2:18pm
UK4: Tender notice
- Notice identifier
- 2025/S 000-035224
- Published
- 25 June 2025, 5:56pm
UK1: Pipeline notice
- Notice identifier
- 2025/S 000-026012
- Published
- 23 May 2025, 11:35am
UK2: Preliminary market engagement notice
- Notice identifier
- 2025/S 000-020541
- Published
- 12 May 2025, 3:00pm