Nottingham City Council has approved a new catering contract with Derby School, marking a significant step in the growth aspirations of the city’s catering services.
The contract, valued at £365,251, will be in effect for a period of 3+1 years starting from 1st September 2023.
Details of the Contract
The decision to enter into the contract was made after Nottingham Catering, the city’s catering department, was requested by a maintained primary school of Derby City Council to provide a quote for its catering service.
After submitting a successful quote, Nottingham Catering won the contract, which will commence on the above mentioned date.
The school will be charged the full costs of catering plus a management fee, ensuring that the council receives its planned financial return and minimizes financial risks. An optional extension of 1 year is available to the school at the end of the initial 3-year period.
Staffing and TUPE Considerations
The contract also includes provisions for the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE). This means that staff from the current provider will be transferred to the Council, with their existing terms and conditions of employment preserved.
The council will undertake genuine consultation with affected employees and trade unions on any proposed changes to the terms of employees’ contracts of employment. The salaries under the previous employer may be higher than Nottingham City Council’s pay scales, and the council will need to honour any higher salaries.
Financial Implications and Risks
Based on an expected contract value and expenditure, the contract will generate a management service fee over the term of £45,256. There are some possible risks associated with TUPE, but the service has experience in minimising such risks.
Reasons for the Decision
The decision supports the Service Plan of Nottingham Catering and the Medium-Term Financial Plan (MTFP) proposals for the 2023/24 financial year. Not entering into the contract was considered but rejected as the proposal aligns with the growth aspirations and Business Plan for the service.
Exempt Information
Certain financial details and the name of the school have been exempted from publication to protect the council’s commercial information and to enable the correct TUPE process to be undertaken.
Conclusion
The new catering contract represents a strategic move by Nottingham City Council to expand its catering services and foster collaboration with neighbouring regions. With careful planning and adherence to legal and financial guidelines, the contract is poised to benefit both the council and the school involved.
The decision is subject to Call In, with an expiry date of 14/08/2023.
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