Issue - meetings

The Cabinet Member for Community Leadership and Engagement presented a report on the proposed extension of a number of contracts with Barking and Dagenham Trading Partnership (BDTP) Limited.

The services in question related to housing repairs and maintenance element undertaken by Barking and Dagenham Management Services (BDMS) Limited, corporate cleaning undertaken by Barking and Dagenham Corporate Cleaning (BDCC) and staff management via WeFix, all subsidiaries of BDTP.  The Cabinet Member advised that the initial five-year contract for those services had expired on 31 March 2023.  Due to a number of concerns with the housing repairs and maintenance service from BDMS, contracts were extended for 12 months in order to address productivity and value for money issues while also allowing the new leadership within BDMS to implement improvements. 

Improvements were achieved during the extension period in terms of service delivery, customer satisfaction and reduced repair backlogs; however, it remained the case that further improvements were necessary for BDMS to meet the Council's expectations for high-quality services to residents. Notwithstanding those challenges within BDMS and following an assessment of options, the Cabinet Member reported that the preferred approach was to further extend the contracts, from April 2024 to March 2026, with the primary aim of maintaining service continuity while investigating alternative options for the provision of a housing repairs and maintenance service and progressing the projected 18-month procurement timetable.  The Cabinet Member also commented on the Housing Revenue Account charges that had been agreed with BDMS for 2024/25, which reflected a reduction of £5.712m, to £22.089m, on the charge for 2023/24 and the intention to pay the reduced fees quarterly in advance to support BDMS with management of its financial liquidity.

Cabinet Members commented on the challenges faced by BDMS and the important role of the Council’s Shareholder Panel in holding the company to account for improved service delivery.

Cabinet resolved to:

(i)  Agree the extension of contracts with Barking and Dagenham Management Services Limited (BDMS) for repairs and maintenance, BDCC for corporate cleaning and the management of the Council's DLO staff (WeFix) for an additional two-year period ending 31 March 2026;

(ii)  Agree that the Council pay the fees due to BDMS quarterly in advance to support with management of its financial liquidity, subject to compliance with the Subsidy Control Act 2022;

(iii)  Authorise that the Strategic Director of MyPlace, in consultation with the Cabinet Members for Community Leadership & Engagement and Finance, Growth & Core Services, the Strategic Director, Resources and the Head of Legal, to conduct negotiations and finalise the terms of the contract extension with BDTP; and

(iv)  Note the Council's intention to explore alternative options for the provision of repairs and maintenance services, currently managed by BDMS, in order to optimise future service delivery in line with evolving needs, industry standards and value for money considerations.