Decision details

To consider the report of the Cabinet Member for Adult Services, seeking approval for a revised partnership agreement with NHS Southampton.

A  decision was taken in January to revise the existing Section 75 Partnership Agreement between Southampton City Council and NHS Southampton (which is for a pooled fund for the joint commissioning of community equipment services) to enable Southampton City Council to take on the lead commissioner role and the services to be re-commissioned against a new service specification.

The original decision requested a Section 75 and subsequent contract for a period of 3 years with the option of a 2 year extension.  Pre-tender work has identified that greater economies of scale would be gained from a Section 75 and subsequent contract for a period of 5 years with the option of a 2 year extension.

To approve the revision of the existing Partnership Agreement made under Section 75 (S75) of the National Health Service Act 2006, to enable the City Council to assume lead commissioner responsibility and administer a pooled fund for community equipment services for a five year period with the option of a further two year extension (increased from a 3 year period with option to extend under the previous terms of Agreement), between Southampton City Council and NHS Southampton.

The longer duration of the Section 75 Agreement is needed to coincide with the contract awarded for the service following the conclusion of procurement processes. It was considered necessary for the contract of this size and complexity to run for 5 years initially, with the option to extend for another 2 years.  A longer term will enable the service to achieve the required outcomes and achieve better value for money.

To set the duration of the S75 Agreement at 3 years, with a two year extension. This was rejected on the grounds that the agreement for the equipment needed to be for 5 years with a two year extension in order to match the length of the contract subsequently awarded following tendering of the services.