Agenda item

Report of Cabinet Member for Health and Wellbeing attached.

Cabinet Member for Health and Wellbeing presented the report which outlined that Bury Council commissions Greater Manchester Mental Health (GMMH), an NHS provider, to deliver substance use treatment services. Following an exploration of various retender options and productive discussions with neighbouring Local Authorities, including Salford and Trafford Councils, plans are progressing to collaborate and form a cluster to jointly tender for future substance use treatment services under a new long-term contract lasting five years, with the option of a two-year extension. This tender aims to collaboratively commission a partnership model for delivering substance use treatment and recovery services, building on the successes of the current partnership model.

Decision:

The Cabinet:

1.      Agreed for Bury Council to partner with fellow Local Authorities (Salford and Trafford Councils) to deliver joint tender of substance use treatment and recovery services from 1 April 2026 on a long term 5 + 2 year contract.

2.      Agreed for Bury Council to join the open procurement with Salford and Trafford Councils and commission new substance use and recovery services with Salford Council as the lead LA.

Reason for the decision:

Bury Public Health team has considered how best to utilise limited resources, identifying a joint tender with neighbour LAs (Salford and Trafford Councils) as the most viable option. Given that several GM councils are in a similar position and all needing to recommission their services, this approach will ensure that future substance use services provide the best value for money and maintain high quality standards.

It will also optimise the substance use workforce in GM, reduce management overhead costs, and leverage economies of scale by pooling resources by commissioning as a tri-borough cluster.

Joint procurement offers the advantage of benefitting from previous wider market testing, which has already taken place with other GM LAs. Bury Council will also benefit from shared procurement, legal, and commissioning capacity, reducing the financial burden associated with tendering for a new service.

Pooling resources makes this procurement opportunity more appealing to prospective providers, as successful bidders will gain a substantial share of GM areas if successful at the tender.

A joint retender for the substance use contract reduces duplication and administrative overheads, enhancing financial sustainability and delivering better value for money for our residents in Bury and GM.

Coordinated services across the three GM LAs ensure seamless support for service users, minimising disruptions in care and eliminating a postcode lottery with disparities in service provision across GM.

Cluster commissioning enables the development of innovative service models and provides greater adaptability in responding to emerging substance use trends locally.

Would align with current / planned projects and external funding streams, such as OHID grants which we currently deliver with Salford and Trafford Council’s.

Maintains the partnership between partnership authorities (Salford and Trafford) who will also be ending their contract with GMMH on 31/03/2026.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 use 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. Collaborating with Salford and Trafford Councils allows for a pooled budget, shared expertise, and more efficient use of resources across commissioning, procurement, and legal functions. This leads to improved retendering processes and enhanced service delivery. A joint approach across GM facilitates the adoption of best practices, ensuring a higher standard of care and more consistent support for people in Manchester facing substance use challenges. Partnering with Salford and Trafford Councils strengthens collective bargaining power with service providers, leading to better contract terms, reduced overhead and management costs, and improve service quality. Standardised KPIs and Outcomes Framework supports data reporting and improves trend identification, prevention strategies, and targeted interventions aligned with OHID national priorities.

Other options considered and rejected:

Considerations as to whether Bury contracts solely:

1.      Bury Council would hold a contract with service providers and greater control over  contract terms and conditions

2.      Ensures clear lines of responsibility of service outcomes and reporting.

3.      Might attract a wider range of SME bidders who are unable to bid for a larger volume contract.

Considerations as to whether to adopt a tripartite approach:

1.      Provides an opportunity to collaborate with other GM LA’s who are tendering for the same service, for the same timeframe, we would benefit from the economies of scale work as previously not had the opportunity before for this service in Bury.

2.      Reduced substance use treatment and recovery provision in Bury from 2025/26 due to the loss of shared resources, as we have been commissioning the same providers as other GM Local Authorities over the past five years. This may lead to potential staff remodelling and increased overhead management fees if a single contract.

3.      Limited scope of competitive bids across providers due to the contract value available in Greater Manchester, as other GM areas tendering for services simultaneously may attract more providers.

4.      Disruption to current service users and staff arising from uncertainty regarding future providers and potential negative impacts on service performance.

5.      Increased administrative burden as managing an independent tendering process will require more time, effort, and resources.

6.      Reduced provider interest due to the limited financial envelope available for Bury’s substance use services compared to other GM areas tendering at the same time. Bury may see less engagement, as providers may prioritise larger joint contracts over smaller independent contract.