Adult Drug and Alcohol Treatment Services

This notice covers two contract modification, the first utilised the first extension period, extending the contract until 31 January 2027, and the inclusion of the DATRIG and IPS Monies. The effective date 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 original contract notice (Notice ID: 2022/S 000-019163) was for an initial term of 3 years 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 years, at the point of submission.

The original Award notice (Notice ID: 2023/S 000-005293) awarded the contract for the initial 3 year period. This modification notice utilises the extension period available within the contract extending the contract term to 31 January 2028.

This notice also includes additional modifications to the contract, these being Individual Placement Support (IPS), DATRIG and National Insurance increases Monies. Further information is detailed below.

IPS: 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).