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Temporary Accommodation at Paragon House

Chelmsford City Council

This public procurement record has 1 release in its history.

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16 Oct 2026 at 13:04

UK5 - Transparency Notice
Summary of the contracting process

Chelmsford City Council is procuring temporary accommodation at Paragon House: 69 nightly-let units to support its housing duties. The accommodation is to be provided and managed by an external housing provider. It comprises 26 fully accessible ground-floor units, including level-access showers, and 43 further temporary accommodation units. The site is in Chelmsford. The requirement addresses the shortage of suitable temporary housing, particularly wheelchair-accessible accommodation for households with critical needs. The service is accommodation provision and management (CPV 98341000).

The procurement is complete and was directly awarded to Housing Action Management Ltd on 16 October 2026. The stated award value is £7,454,044.22 excluding VAT (£8,944,853.06 including VAT). The contract period is 2 November 2026 to 1 November 2029, with an option for up to two further 12-month extensions, potentially extending to 1 November 2031. The Council used a direct award on technical grounds, stating that no alternative provider could supply comparable accessible accommodation. Its rationale also cites urgent statutory housing duties and rates below the average nightly costs of other placements. The procurement is arranged as one lot.

This requirement demonstrates demand from Chelmsford City Council for a provider able to supply and manage a sizeable block of temporary accommodation, including accessible homes for people with mobility needs. A credible competitor would need suitable properties available in or around Chelmsford, with fully accessible units and facilities such as level-access showers, alongside enough additional units to meet wider temporary housing demand. The Council’s stated rationale highlights the importance of reliable provision that can meet immediate housing obligations and maintain continuity, as well as competitive nightly rates. The incumbent’s ability to provide the Paragon House scheme was central to the direct award, so a future competitor would need to show that its accommodation offers comparable accessibility, capacity, suitability and value.

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Notice Information

Notice Title

Temporary Accommodation at Paragon House

Notice Description

This contract will provide for the supply of 69 nightly let accommodation units at the Paragon House site under an initial three-year term, with the option to extend for up to two further periods of 12 months each. Of the 69 units, 26 are located on the ground floor and offer fully accessible accommodation, including level-access shower facilities. The accommodation will be provided and managed by an external housing provider, ensuring the continued availability of high-quality temporary accommodation to support the Council's housing obligations.

Procurement Information

Paragraph 6 under schedule 5 of the Procurement Act applies - the following conditions are met in relation to the public contract (a)due to an absence of competition for technical reasons, only a particular supplier can supply the goods, services or works required, and There is currently no alternative provider capable of delivering the level of accessible temporary accommodation offered through Paragon House, which has been acquired and will be managed by Housing Action Management. The scheme will provide 26 fully accessible units, together with a further 43 temporary accommodation units, representing a vital resource in supporting the Council to meet its statutory housing duties towards households with accessibility requirements. Chelmsford currently has the highest number of Local Housing Allowance households in temporary accommodation located outside the district within the East of England. This position is contrary to both the Homelessness Code of Guidance and the requirement to secure suitable accommodation under the Housing Act. Of particular concern is the severe shortage of wheelchair-accessible accommodation for households with critical needs. Despite extensive efforts, the Council has been unable to identify or procure elsewhere comparable provisions, either within the district or in neighbouring areas. Given the current shortfall in suitable accommodation, the key consideration is not what may become available in the future, but what is available now to meet the Council's immediate statutory obligations. The Council's duty to accommodate eligible homeless households is an immediate one and cannot be deferred pending the future availability of alternative suitable properties. Paragon House therefore represents a unique and essential solution to address an urgent and ongoing housing need. The accommodation also represents good value for money, with rates that are lower than the average nightly costs currently incurred by the Council for other temporary accommodation placements. Securing a longer-term agreement would therefore provide both service continuity and financial benefits. The Council currently accommodates approximately 610 households in temporary accommodation. Ongoing pressures within the housing market, combined with a continued shortage of social housing, have resulted in increasing lengths of stay within temporary accommodation. As a result, the number of households requiring temporary accommodation is expected to continue to rise. Demand for accessible temporary accommodation is also likely to increase significantly with this, making the provision at Paragon House strategically important in meeting both current and future housing needs.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-078983
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/097937-2026
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
UK5 - Transparency Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Direct
Procurement Method Details
Direct award
Tender Suitability
Not specified
Awardee Scale
SME

Common Procurement Vocabulary (CPV)

CPV Divisions

98 - Other community, social and personal services

CPV Codes

98341000 - Accommodation services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
£7,454,044 £1M-£10M
Contracts Value
Not specified

Notice Dates

Publication Date
16 Oct 20261 weeks ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
Not specified
Contract Period
2 Nov 2026 - 1 Nov 2029 3-4 years
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Complete
Awards Status
Pending
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Chelmsford City Council
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
CHELMSFORD
Postcode
CM1 1JE
Postcode Area
Chelmsford
Country
England
Major Region (ITL 1)
TLH East (England)
Basic Region (ITL 2)
TLH3 Essex
Small Region (ITL 3)
TLH36 Heart of Essex
Delivery Location
Not specified
Local Authority
Chelmsford
Electoral Ward
Marconi
Westminster Constituency
Chelmsford

Supplier Information

Number of Suppliers
1
Supplier Name

Housing Action Management

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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