This report updates on the report taken to Adult Social Care and Public Health Committee on the 6th of March 2023 regarding the recommissioning of sexual and reproductive health services in Wirral.

The Director of Public Health has been authorised by the Committee to commence the re-commissioning of Sexual and Reproductive Health Services for an initial five-year period from the 1st of April 2024 with the option for two one-year extensions to a value of £20,300,000 over the seven-year term and award a contract to the successful party/ies following this process.

In light of additional financial pressures likely to be experienced by providers that have

since been identified, this report asks for approval to increase the maximum financial value of the contract.

The proposals within this report supports the implementation of the Wirral Plan 2021 – 26 priorities, Brighter Futures and Active and Healthy Lives

Resolved - that the Director of Public Health be authorised to commence the recommissioning of the Sexual and Reproductive Health Services, as otherwise agreed at the Adult Social Care and Public Health Committee of 6th of March 2023 at an increased value of £21,109,078 from £20,300,000. An increased value of £809,078 over the seven-year term.

To ensure that the value of the tender for sexual and reproductive health services in Wirral remains commercially viable and attractive to potential providers.

To mitigate the negative impact of future inflation on the quality of provision of sexual and reproductive health services in Wirral.

The option of not adding an uplift to the contract value was considered, however the following matters have been taken into account:

· The future responsibility of Local Authorities to cover nationally negotiated NHS salary increases;

· The forecast levels of inflation over future financial years;

· The current expenditure of the incumbent provider for delivery of the integrated sexual health service is above the contracted value of £2,700,000 per annum;

· The current level of the Council’s expenditure on sexual and reproductive health services, in comparison to neighbouring Cheshire and Merseyside local authorities, where the Council sits 5th out of 9 authorities on expenditure per capita;

· The previous commissioning exercise in 2016/17, where only one bid was received for the integrated sexual health service; and

· The findings of a soft market testing exercise, where inflationary pressures were regularly cited as a prime risk to service delivery.

Having regard to the above factors, there is high likelihood of providers declining to submit bids for the tender. This would jeopardise the future delivery of quality sexual health services in Wirral. It is necessary to recommission the services highlighted in order to comply with Public Contract Regulations 2015 and the Council’s Contract Procedure Rules.  

The option of increasing the value of the contract(s) by 3.2% each year over the course of the contract(s) has been considered. This value is in line with the uplift to value of the public health grant for 2023/24 and would be closer to the anticipated value of any NHS wage increases, and the likely level of inflation over the duration of the contract (while still leaving a likely shortfall to be absorbed by the provider).

This option was rejected, owing to the uncertainty around future increases in the value of the public health grant beyond 2023/24. An indicative increase of 1.3% has been given for 2024/25, and there is a risk that future awards will continue to be below any proposed 3.2% uplift to this contract, exposing the Council to increased financial risk.