Adult Drug and Alcohol Treatment Services

Contracts

• Adult Drug and Alcohol Treatment Services · CRANSTOUN

  Signed

  1 Feb 2023

  Value

  £17,982,352

  Period

  … – 31 Jan 2026

  Status

  active

  • Change This modification notice covers two contract variations, the first utilised the first extension period, extending the contract until 31 January 2027, and included the inclusion of the DATRIG and IPS Monies detailed above. The effective date for the first modification was 01 April 2025, however the modification was not signed until 08 October 2025. The second modification utilised the final extension period, extending the contract term to 31 January 2028. This was fully signed on 23 October 2025. The below details the modifications made to the contract that this notice covers and the reason for these modifications. The original contract notice published (Notice identifier: 2022/S 000-019163) for this requirement was for an initial term of 3 year with an option to extend for up to a further 2 years. Bidders were required to submit a bid for the full contract period, 3 years with an option to extend for a further 2 year, at the point of submission. The original Award notice (Notice identifier: 2023/S 000-005293) awarded the contract for the initial 3 year period and this modification notice is utilise the extension period available within the contract. This modification notice also includes additional modifications to the contract, these being additional money for Individual Placement Support, DATRIG and National Insurance increases. Further information is detailed below. The Borough Council of Sandwell have utilised the extension period, detailed within the original tender documents and contract notice, which extends the contract term to 31 January 2028. The Council have also modified the contract to include the below: Individual Placement Support: Individual Placement and Support (IPS) aims to support people in recovery from drugs and/or alcohol into sustained employment. Commitments made in the national drug strategy included ensuring that IPS would be available in all treatment systems in all English local authorities by 2024-25. National IPS specification requirements necessitate full integration of the IPS delivery team within community drug and alcohol treatment services, including access to case management systems. Given that IPS relies on seamless integration between employment support and clinical/treatment services this intervention can only be delivered by the existing drug treatment provider, Cranstoun. Sandwell Council modified the contract with Cranstoun to include the delivery of IPS for the confirmed funding period of 2024/25 (£158,402) and 2025/26 (£166,322). Sandwell's funding allocation was not known at the time adult drug and alcohol treatment services was procured. DATRIG: Sandwell Council's contract with Cranstoun to deliver drug and alcohol treatment services commenced on 1 February 2023. At the time of the procurement the Council were aware that additional government monies to support the national drug strategy were confirmed until 31 March 2025. This was included in tender documentation and the associated budget. In January 2025 Government announced an additional one-year funding allocation for 2025/26. The conditions of the funding necessitates spend on a menu of interventions many of which can only be delivered by specialist drug and alcohol services. Cranstoun were awarded £668,981 for the financial year 2025/26 to improve the quality of existing services through an increased staffing model and capacity, access to new Opiate Substitution Therapy (Buvidal), enhanced outreach and harm reduction, more residential rehab placements and the development of stronger pathways between health, social care and criminal justice. National Insurance Increase: Cranstoun's contract with Sandwell Council commenced on 1 February 2023. Their tender submission included a fully costed budget based on staff oncosts at the time. On 6 April 2025, Government increased employer national insurance contributions from 13.8% to 15% while the threshold for payment of national insurance decreased from £9100 to £5000 meaning employers were required to start paying national insurance at a lower earnings level. This resulted in additional staffing costs of £45,246 for 2025/26 which were not budgeted for in Cranstoun's tender submission. Savings were not available from elsewhere therefore the only alternative option to increased funding would be to cut a staff post which would be detrimental to the ambitions of both the national drug strategy and the 10-year strategic plan for the drug and alcohol treatment and recovery workforce (2024-2034)., Need for additional works, services or supplies by the original contractor/concessionaire: This modification notice covers two contract variations, the first utilised the first extension period, extending the contract until 31 January 2027, and included the inclusion of the DATRIG and IPS Monies detailed above. The effective date for the first modification was 01 April 2025, however the modification was not signed until 08 October 2025. The second modification utilised the final extension period, extending the contract term to 31 January 2028. This was fully signed on 23 October 2025. The below details the modifications made to the contract that this notice covers and the reason for these modifications. The original contract notice published (Notice identifier: 2022/S 000-019163) for this requirement was for an initial term of 3 year with an option to extend for up to a further 2 years. Bidders were required to submit a bid for the full contract period, 3 years with an option to extend for a further 2 year, at the point of submission. The original Award notice (Notice identifier: 2023/S 000-005293) awarded the contract for the initial 3 year period and this modification notice is utilise the extension period available within the contract. This modification notice also includes additional modifications to the contract, these being additional money for Individual Placement Support, DATRIG and National Insurance increases. Further information is detailed below. The Borough Council of Sandwell have utilised the extension period, detailed within the original tender documents and contract notice, which extends the contract term to 31 January 2028. The Council have also modified the contract to include the below: Individual Placement Support: Individual Placement and Support (IPS) aims to support people in recovery from drugs and/or alcohol into sustained employment. Commitments made in the national drug strategy included ensuring that IPS would be available in all treatment systems in all English local authorities by 2024-25. National IPS specification requirements necessitate full integration of the IPS delivery team within community drug and alcohol treatment services, including access to case management systems. Given that IPS relies on seamless integration between employment support and clinical/treatment services this intervention can only be delivered by the existing drug treatment provider, Cranstoun. Sandwell Council modified the contract with Cranstoun to include the delivery of IPS for the confirmed funding period of 2024/25 (£158,402) and 2025/26 (£166,322). Sandwell's funding allocation was not known at the time adult drug and alcohol treatment services was procured. DATRIG: Sandwell Council's contract with Cranstoun to deliver drug and alcohol treatment services commenced on 1 February 2023. At the time of the procurement the Council were aware that additional government monies to support the national drug strategy were confirmed until 31 March 2025. This was included in tender documentation and the associated budget. In January 2025 Government announced an additional one-year funding allocation for 2025/26. The conditions of the funding necessitates spend on a menu of interventions many of which can only be delivered by specialist drug and alcohol services. Cranstoun were awarded £668,981 for the financial year 2025/26 to improve the quality of existing services through an increased staffing model and capacity, access to new Opiate Substitution Therapy (Buvidal), enhanced outreach and harm reduction, more residential rehab placements and the development of stronger pathways between health, social care and criminal justice. National Insurance Increase: Cranstoun's contract with Sandwell Council commenced on 1 February 2023. Their tender submission included a fully costed budget based on staff oncosts at the time. On 6 April 2025, Government increased employer national insurance contributions from 13.8% to 15% while the threshold for payment of national insurance decreased from £9100 to £5000 meaning employers were required to start paying national insurance at a lower earnings level. This resulted in additional staffing costs of £45,246 for 2025/26 which were not budgeted for in Cranstoun's tender submission. Savings were not available from elsewhere therefore the only alternative option to increased funding would be to cut a staff post which would be detrimental to the ambitions of both the national drug strategy and the 10-year strategic plan for the drug and alcohol treatment and recovery workforce (2024-2034).

• Contract 055744-2026-PH0138-1-1 · CRANSTOUN

  Signed

  1 Feb 2023

  Value

  £20,172,993

  Period

  … – 31 Jan 2026

  Status

  active

  • Change The Borough Council of Sandwell has previously modified the contract (Notice identifier: 2026/S 000-004955) to utilise the extension period, detailed within the original tender documents and notice (Notice identifier: 2023/S 000-005293), extending the contract term to 31 January 2028 and included the inclusion of the DATRIG, IPS Monies and National Insurance Increase. Which increased the contract value to £17,982,352. The Borough Council of Sandwell has now modified the contract to secure the provision of additional and enhanced drug and alcohol services for 1 April 2026 to 31 March 2027 and, subject to confirmation of additional funding, from 1 April 2027 to 31 January 2028 when the current contract ends. The additional elements will enhance existing drug and alcohol treatment services by increasing service capacity and improving quality. IPS: The IPS service will deliver employment support for people accessing the specialist drug and alcohol treatment and recovery service. In line with national IPS specification requirements the service will be fully integrated with the specialist provider, including access to case management systems. DATRIG: The conditions of this funding necessitates spend on specified elements within drug and alcohol treatment and recovery systems as well as priority focus areas. Many of the required interventions can only be delivered by specialist drug and alcohol services. The funding will improve the capacity and quality of existing services through an increased staffing model, access to long-acting buprenorphine therapy (Buvidal), enhanced outreach and harm reduction, residential rehabilitation placements and the development of stronger pathways between health, social care and criminal justice including an offender to recovery programme., Need for modification brought about by circumstances which a diligent contracting authority/entity could not foresee: On 18 December 2025, Government provided details of ring-fenced funding for drug and alcohol services, including indicative amounts for the years 2026/27, 2027/28 and 2028/29. The ring-fenced funding, transferred to Local Authorities as part of the Public Health Main Grant allocation, includes additional monies for the Individual Placement and Support Service (IPS) and the Drug and Alcohol Treatment and Recovery Improvement Grant (DATRIG). The allocation for 2026/27 was confirmed and published by Government on 9 February 2026. While indicative amounts have been published, funding for 2027/28 and 2028/29 will be confirmed annually, prior to the start of each financial year. The additional monies can only be spent on Individual Placement and Support (IPS) and other specified elements within drug and alcohol treatment and recovery systems which include a menu of priority focus areas. Any spend must aim to increase capacity and improve the quality of services. Many of the associated interventions can only be delivered by specialist drug and alcohol services and require full integration with existing provision. The Council was not aware of the funding arrangements for 2026/27, 2027/28 and 2028/29 when the specialist drug and alcohol treatment and recovery service was originally procured or when the contract commenced on 1 February 2023. Alternative options to contract variation were 1) Commission a separate service to provide capacity and quality enhancements or 2) Recommission drug and alcohol services to incorporate capacity and quality enhancements. Both options presented challenges in terms of timelines and the ability to advertise, evaluate and mobilise the contract given funding was only confirmed two months prior to the expected commencement date. Furthermore option 1 risked further challenges in terms of information sharing should a different provider be appointed as well as duplication and potential confusion for the people who use our services. Meanwhile option 2 would have required a 6 month notice period to the current provider given their contract (including confirmed extension periods) runs until 31 January 2028.

• Adult Drug and Alcohol Treatment Services · CRANSTOUN

  Signed

  date not published

  Value

  £16,940,391

  Period

  … – 31 Jan 2026

  Status

  active

Bid statistics published by the authority

Consortium members and other public bodies

• The Borough Council of SandwellContracting authorityRegional or local authorityGeneral public services OLDBURY, West MidlandsContact emailShow contact details Published organisation website ↗

Dispute resolution & review bodies

• The High Court of JusticeReview body London