Temporary Accommodation Support Service

Description

Portsmouth City Council ('the council') has awarded a contract for a support service for individuals and families living in temporary accommodation.
The Service will comprise of accommodation based and non-accommodation based (floating) support services. In addition to the support element, the Council also requires a property management service for some of its furnished temporary accommodation. Currently support is delivered to approximately 45 households, with varying degrees of support need and frequency of visits.
The Service will consist of two elements under three Lot options:
• Accommodation based support & non-accommodation based (floating) support;
• Property management;
The council  awarded both contracts on 1 Mar 2022 to allow for service commencement on 1 Jun 2022. The contracts will be let for an initial term of 3 years which may then run for a further 5 years in increments set by the Council to a total maximum term of 8 years, subject to performance and at the sole option of the Council.
The estimated total value of the contracts for both lots is £900,000 over the initial term based on the total available budget. The annual value of both contracts may vary over the initial term due to fluctuation in demand. An open book costing model will be used alongside the contract to agree any variations over the term.
The estimated value of the contract 1 is IRO £150,000 - £200,000 per annum, between £1,200,000 - £1,600,000 over the maximum term of 8 years.
The estimated value of contract 2 is IRO of £75,000 - £100,000 per annum, £600,000 - £800,000 over the maximum term of 8 years.
In the event that term extension options are taken up on their entirety the estimated value of the contracts for both lots is an upper limit of £2,400,000 exclusive of any inflationary increases which could further increase this value.
Should further funding becoming available over the term of the contract for related services the council may seek to expand the scope of the contracts accordingly which could further increase the contract values.
An accurate forecast cannot be made regarding the level of further funding, if any, that may become available but it is not expected to equate to an increase of more than approx. 25% and therefore approx. £3,000,000 over the duration of the term. However these estimates are not guarantees and are non-binding in terms of any maximum total upper value that may be let via the contracts.