The contract for interim management services of People 1st was tendered by the Council in November 2005 using European Union OJEU rules. Hounslow Homes submitted the successful tender and the Council entered into a 12 month contract with an option to extend by mutual agreement for a further 3 months.

The total sum for services provided throughout this 15 month period was £559,566. The contract came to its natural end in February this year and I want to state for the record that there was no termination of the contract by either party. The ending of the contract was always anticipated and as such was not abrupt. The ending of the contract did not give rise to any problems as replacement staff had already been recruited by People 1st to continue the work towards two star status.