Discharge to Access (D2A) beds contract for Ipswich & East

This is required due to the absence of viable market alternatives, the need to maintain service continuity in order to effectively discharge our statutory duties and the significant financial benefit offered by the only provider capable of meeting the full specification and budget envelope following market engagement.

Market Engagement Summary

• A market engagement event for D2A beds (Lot 1 Ipswich & East, Lot 2 West) was held on 02/03/2026, attended by 26 participants.
• A follow up MS Forms survey was issued on 03/03/2026, generating 5 responses (2 for Lot 1, 2 for Lot 2, 1 for both).
• Clarification meetings were held with two providers for Lot 1 due to inconsistent responses regarding their ability to meet the service specification.
• Both providers confirmed they cannot meet the specification or operate within the available budget envelope.
• Lot 2 (West) will proceed via a separate procurement route.

For Lot 1, only one provider is able to meet the full specification and budget envelope, and their pricing represents substantial savings compared with indicative market rates. This provider is therefore the sole viable option for service continuity.

Justification for Direct Award

A derogation under the Procurement Act 2023 is justified because:

1. No Reasonable Alternative

• Market engagement demonstrated that only one provider can meet the required specification and budget.
• All other engaged providers formally confirmed they cannot deliver the service as required.
• A competitive process would not generate meaningful competition and would likely increase costs.

2. Technical and Operational Incompatibility

• D2A beds are essential to hospital discharge pathways and the Council's statutory duties under the Care Act.
• The service must be located within 15 miles / 30 minutes of Ipswich Hospital due to the integrated therapy model with ESNEFT.
• Any interruption would negatively impact:
• Acute hospital flow
• Delayed discharge performance
• Statutory social care duties
• The only viable provider is already aligned with the required model and can mobilise without disruption.

3. Value for Money

• The viable provider offers significant savings compared with indicative market rates.
• Proceeding to competition risks losing this value and could result in higher cost emergency arrangements.