Nottingham council suspends tendering new contracts worth £25 million over coronavirus

“The current COVID situation means we wouldn’t be able to successfully run a re-tendering exercise"

The city council has extended several contracts to the tune of more than £25 million due to the coronavirus pandemic.

The deals, which are predominantly in the social care sector, have all been extended by either six or 12 months, and could then be re-tendered at the end of that period.

The 18 contracts which have been extended range from fruit and veg supply to lightning conductor installation, and from corpse transportation to mobile phone networks.

Normally, once contracts reach the end of their time period the council would re-advertise the contract - known as tendering - to make sure it is getting the best price and service available.

However this normal process has been suspended for some, but not all, contracts.

It is hoped the unusual move will free up council time, but also give greater security for social care providers, at a time when the sector is less able to be responsive to competitive tendering.

The largest of the contracts extended is for residential and nursing care services for adults - this has been extended for six months at a cost of £23,250,000.

In total, the cost of the 18 contract extensions is £24,840,628.

Councillor David Mellen is the leader of Nottingham City Council, and represents the Dales ward for Labour.

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He said: “It’s crucial that we are able to keep delivering essential services and so some contracts, in particular for adult social care, that would normally have been re-advertised for fresh bids may be extended for a number of months until tendering can be completed.

“The current COVID situation means we wouldn’t be able to successfully run a re-tendering exercise due to the impact on the market, and financial uncertainties at the moment mean there could be doubts about the viability and cost-effectiveness of any new tenders.

“This, and lack of capacity to carry out such an exercise while our officers are focused on managing the emergency response to the outbreak, means that extending a number of contracts is the only way to ensure vital services and supplies are maintained.”

Some of the contracts extended include: a mental health independent living support service (extended for six months); school bus services (extended for 12 months); air handling plant and air conditioning geothermal heat pumps maintenance (extended for six months) and the transport of bodies (extended for six months).