Decision details

The Deputy Leader and Cabinet Member for Health and Wellbeing presented the report which requested the extension of Bury Council’s current substance misuse contract with Greater Manchester Mental Health for a final twelve months, from 1st April 2025 – 31st March 2026.

Decision:

The Cabinet:

1.    Extend Bury Council’s current substance misuse contract with GMMH for a final twelve months, from 1^st April 2025 – 31st March 2026 and not proceed with a direct award to the current provider for a longer term.

2.    Agree for Public Health colleagues to explore competitive retender opportunities from 01^st April 26, including partnering with other Local Authorities whose substance misuse contracts with GMMH also expire on 31st March 2026.

Reason for the decision:

Tender for new provider(s)

Pros:

·         Allows direct comparison to other providers.

·         Reduced management fee rates to enabling more investment in workforce and staffing

·         Ensures the Council is achieving best value for money and maintains service quality for our residents.

·         Supports cluster commissioning with other GM Local Authorities, ensuring a consistent service offer, whilst reducing commissioning, legal and procurement capacity demands across all four LA’s.

·         Enables better value for the same cost, whether through price reductions, improved service quality or added value over a long term contract.

·         Would align with current / planned projects and external funding streams, such as OHID grants.

·         Maintains the partnership between partnership authorities (Bolton, Salford and Trafford) who will also be ending their contract with GMMH. This currently allows for economies of scale of work, shared back-office functions and a peer support approach across all organisations involved.

·         Cluster commissioning model is successfully used for Bury’s Sexual Health contract, where Bury, Oldham and Rochdale Councils collaborate.

·         The retender process will consider the various elements of the substance misuse service which includes adults, young people, and assertive outreach. This may mean we consider tendering for more than one provider to cover all service needs effectively.

Cons:

·         Disruption to current service users and staff. Anecdotal reports from the last tender in 2018 demonstrated that implementation of a new provider can cause disruption to service users and lead to low staff morale.

·         Potential disruption to performance.

·         Loss of Addictions services at GMMH, with all four LA areas ending their contract with the trust as of 31/3/26.

·         The council will need to procure services under the new procurement Act (2023) under the Provider Selection Regime (PSR) which will change process to procure health services and adhere to new processes and legislation.

Other options considered and rejected:

Extending the current contract for a further 12 months will ensure continuity for ongoing projects and funding streams while future options are considered.

Public Health acknowledges that a 12-month extension will provide an opportunity to explore all options for future service provision, including potential procurement alongside other GM LA’s. While the service configuration and provider may change, this review will ensure that future provision delivers the highest quality and best value for money for residents.

Public Health is committed to working closely with GMMH during the 12- month extension period on develop a sustainable service that meets the needs of Bury residents and retains the local bury workforce within a future long term contract with the successful provider(s).