Issue details

Proposed decision

To recommission the Older Persons Residential and Nursing (OPRN) care service and to extend the current Dynamic Purchasing System contract arrangements for a potential further period of up to nine months to enable the awarding of new contracts and mobilisation of the procurement of the OPRN under a new Light Touch Open Framework.

Reason for the decision

The current contract, introduced in 2016 and extended via a 24-month direct award to March 2026, operates under a Dynamic Purchasing System (DPS). While the DPS has offered flexibility, it has led to growing price variation, limited market control, and challenges in monitoring quality and performance.

Significant changes in care needs, regulatory requirements, and service costs now require a more sustainable and structured model, in line with the Procurement Act 2023. The proposed solution is a new Open Framework aligned with KCC’s strategic priorities and key policies such as Framing Kent’s Future, Making a Difference Every Day, and the Accommodation Market Position Statement.

Approval is sought to proceed to tender and secure a fit-for-purpose model that delivers sustainable, high-quality care and improved outcomes for Kent’s older population, as well as the potential to extend the existing OPRN DPS for a further period of up to nine months.

Background – Provide brief additional context

In 2014, the Council re-let the then 12-year-old Residential and Nursing Care contract using a two-stage procurement process. The first stage involved a cost model review, which re-evaluated care home costs and established new guide prices for Residential, Residential High, and Nursing Care.

To support the transition and prepare both the market and the Council for the anticipated major changes linked to Phase 2 of the Care Act 2014, an 18-month contract was introduced in October 2014. This short-term contract ended on 31 March 2016.

On 1 April 2016, the current Older Persons Residential and Nursing (OPRN) Care contract commenced. It was initially set for four years, with the option of two extensions of 24 months each. Both extension periods have been fully utilised, and the contract had no provision for further extensions beyond 31 March 2024.

On 18 January 2024, the Adult Social Care Cabinet Committee approved a 24-month direct award, ensuring continued service provision until 31 March 2026.

Over the past decade there have been significant changes in care needs, regulatory requirements, workforce challenges, service delivery expectations and service costs.

This project aims to respond to Framing Kent’s Future, 2022-2026, by considering the Council’s priority of New Models of Care and Support by recognising the importance of health and social care integration, building effective strategic partnerships with our providers through coproduction whilst being innovative in the way we look to redesign services to improve quality and respond to budget constraints.

It is the Council’s priority to establish new arrangements to continue providing affordable accommodation, care, support and stimulation to those people in the client group for whom it is appropriate, either in the short or longer term, to live in a Residential or Nursing Home setting as their own home, ensuring a sustainable local market for care services (s5 Care Act 2014). This does not preclude the council developing its own homes but current contracts need to be renewed for the current externally commissioned placements.

The expectation is to commence contract award for the new service under the Light Touch Open Framework, from 1 April 2026. However to ensure continuity of provision the council may require the existing arrangements to enable the completion of the procurement.

Options (other options considered but not taken forward)

Before deciding on the preferred way forward, the following options were considered:

Option 1: Do Minimum

Option 2: Less Ambitious

How the proposed decision supports the Framing Kent's Future - Our Council Strategy 2022-2026

The recommissioning of the Older Peoples Residential and Nursing (OPRN) provision will align with KCC’s four strategic priorities outlined in Framing Kent’s Future: Our Council Strategy 2022-2026, which include: -

a)    Levelling Up Kent: Addressing disparities to ensure all People have access to quality services.

b)    Infrastructure for Communities: Investing in infrastructure that supports community needs.

c)    Environmental Step Change: Promoting sustainable practices across services.

d)    New Models of Care and Support: Innovating care delivery to meet evolving needs.

How the proposed decision supports Securing Kent’s Future 2022 -2026: Securing Kents Future - Budget Recovery Strategy.pdf

The proposed decision aligns with the ambitions set out in Framing Kent’s Future to place Kent on a sustainable footing for the medium and long term