Decision details

Abandonment of procurement exercise and extension of Management Agreement with Gloucester City Homes for Caridas House and Priory Place.

Decision Maker: Cabinet Member for Planning and Housing Strategy

Decision status: Recommendations Approved (subject to call-in)

Is Key decision?: No

Is subject to call in?: Yes

Decision:

Agree to Gloucester City Council giving Gloucester City Homes an extension of their notice period for the termination of the management agreement in respect of emergency homeless accommodation at Caridas House and Priory Place (part of the Housing Stock Transfer Agreement) until 30th June 2022 and to abandon the current procurement exercise.

Reasons for the decision:

GCH have managed two properties for the City Council since the housing stock transfer in 2015; Caridas House, owned by the City Council and Priory Place, of which the City Council are the long-term lease holder. These properties are emergency accommodation.

 

The City Council has been out to tender to re-procure the management of these properties in order to improve the use of these properties in meeting the needs of residents for whom we owe a housing duty and to improve financial benefit which can support the delivery of our housing service for our residents. The procurement will be abandoned as it has not achieved the anticipated saving or value for money the Council expected.

 

The Housing Stock Transfer Agreement allows for either party to terminate GCH’s management of these properties by giving at least 6 months’ prior written notice to expire on the last day of the relevant month. We will be extending the notice period until 30th June 2022 which will allow for other options/ specifications to be explored and a new procurement process to be undertaken if required.

Alternative options considered:

We could continue with the existing agreement which would not allow us to realise the benefits which we have identified. We could continue with the current procurement but this is not likely to deliver the value for money we expect to achieve.

Publication date: 03/06/2021

Date of decision: 03/06/2021

Current call-in Count: 0