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Temporary Accommodation at Paragon House

Chelmsford City Council

This public procurement record has 2 releases in its history.

Award

16 Oct 2026 at 13:29

UK6 - Contract Award Notice
Award

16 Oct 2026 at 13:26

UK5 - Transparency Notice
Summary of the contracting process

Chelmsford City Council contracted for the provision and management of temporary accommodation at Paragon House in Chelmsford. The service comprises 69 nightly-let accommodation units for households needing temporary housing. Of these, 26 ground-floor units are fully accessible, including level-access showers; the remaining 43 units provide additional temporary accommodation. The requirement supports the council’s housing duties, particularly its need to place households with accessibility requirements in suitable accommodation. The selected provider is responsible for managing the accommodation as well as making the units available. This is a housing accommodation service, rather than a construction project or a purchase of property.

The procurement is complete and the contract was awarded to Housing Action Management Ltd. Chelmsford City Council used a direct award, citing technical reasons: it considered the provider and Paragon House the only available way to meet the requirement for this level of accessible temporary accommodation. The awarded value is £7,454,044.22 excluding VAT (£8,944,853.06 including VAT). The contract period runs from 2 November 2026 to 1 November 2029, with options for two further 12-month extensions, to a maximum end date of 1 November 2031. The award was recorded on 16 October 2026. There is one lot, covering the accommodation service as a whole.

For suppliers assessing comparable future requirements from Chelmsford City Council, this award demonstrates demand for a managed supply of temporary accommodation, with particular importance placed on suitable provision for households with accessibility needs. A credible competitor would need to secure and operate accommodation with a substantial accessible component, including ground-floor units and level-access shower facilities, alongside general temporary housing capacity. The council’s rationale also points to the importance of having a specific, deliverable site and being able to provide accommodation when required to meet statutory housing duties. Suppliers would need to demonstrate that their properties and management arrangements can support continuity of placements and meet the needs of households with critical accessibility requirements. The requirement was placed by direct award on technical grounds, rather than through a competitive evaluation.

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Notice Information

Notice Title

Temporary Accommodation at Paragon House

Notice Description

Direct Award under PA23 to provide 69 nightly let accommodation units at the Paragon House, Chelmsford, 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

Single supplier - technical reasons 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-07898c
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/097963-2026
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
UK6 - Contract Award 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
16 Oct 20261 weeks ago
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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