Decision details

Agreement of a reduction in the final 5-year extension to a 2-year extension to the current contract for the provision of Software and Services between Staffordshire County Council and CareWorks Limited

1. On 16th February 2011 Cabinet approved to delegate the decision regarding the award of a contract for the supply and maintenance of a Social Care and Health System to the then Director of People and Deputy Chief Executive in consultation with the Cabinet Member for Adults’ Wellbeing.

2. The OJEU process concluded in 2011, with the four main market suppliers considered through the tender process with CareDirector scoring highest on all four areas of the tender.

3. Staffordshire County Council and Careworks Limited agreed contract terms for the provision of CareDirector software and services on 29th November 2011 for Adult Social Care and Health (the “Contract”).

4. Staffordshire County Council and Careworks Limited agreed a contract change to include the provision of CareDirector software and services for Children’s Social Care on 28th August 2012.

5. There have been a number of other contract changes throughout the term of the Contract, including changes required due to various upgrades, and Careworks Limited was purchased by One Advanced Software Limited in November 2019, who have continued operating the Contract under Careworks Limited.

6. The terms and conditions of the Contract were for an Initial Term of 10 years with provision for an automatic extension of 5 years ("Extended Term") at the end of the Initial Term and at the end of the first Extended Term, unless terminated with 6 months written notice before the end of the Initial Term or Extended Term.

7. An executive officer delegated decision was published on 29th November 2021 to approve the first automated 5-year extension of the contract until 29th November 2026.

8. The contract makes provision for a further automated extended term of 5 years from 29th November 2026 to 29th November 2031.

9. On 17th April 2024, Cabinet approved the commencement of a procurement exercise for a new case management system for adults’ and children’s social services with the final decision on the award of the contract to be brought to full Cabinet for approval. The cabinet report detailed the intention to secure an exit to the CareDirector contract by November 2028.

10. Advanced software have provided their agreement and contract authorisation note to reduce the final extended term from 5 years to 2 years without changing any other terms and conditions of the contract and without earlier exit penalties. Contract termination will become 29th November 2028.

11. If the contract is continued beyond the current extended period, the charges for the extended period can be increased or decreased in accordance with the percentage change in the Consumer Prices Index (CPI) and remain fixed for the extended period.

12. The total cost to the Council for the 2 years extended term, including 4%* CPI increase, are therefore:

Area 2026/27
£ 2027/2028
£
Adult Social Care Licence and Maintenance costs 241,000 241,000
Children’s Social Care Licence and Maintenance costs 101,000 101,000
Annual Costs 342,000 342,00
Overall Cost £784,000
* Calculation is based on current CPI of 4%, this may change in 2026 when the current extended terms point is reached on 29th November 2026.

The alternative option would be to procure and implement a replacement system prior to 29th November 2026 and terminate the Contract 6 months before the end of the current extended Term to avoid the automatic 5-year extended terms and termination costs thereafter. However, advice from the Commercial Unit is that a comprehensive specification is fundamental to any procurement process, therefore the likely timescale for procurement and implementation of a replacement case management system for social care is 3-4 years.

Extending the current system for 2 years provides sufficient time to complete this process.