Official UK procurement notice
Temporary Accommodation at Paragon House
Authority: Chelmsford City Council (Local council)
What is being bought
Published requirement descriptionThis 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.
The lotProcurement structure
single lot · no lot value publishedLot #1Awarded
Procedure terms & legal framework
From the official record- Procedure method
- Direct award
- Legal basis
- UKPGA · 2023/54 Procurement Act 2023
- Notice status
- Awarded without competition
- Procurement threshold
- Unspecified in notice
- Regulatory regime
- Standard
- Commercial structure
- Stand-alone contract (no framework)
- Competition type
- Direct award (no call for competition)
- GPA / WTO covered
- Unspecified in notice
- Recurring procurement
- Unspecified in notice
- First published
- 16 Oct 2026, 13:04 BST
- Last source update
- 16 Oct 2026, 13:04 BST
- FTS notice number
2026/S 000-097937- Latest notice
- Transparency notice (UK5)
- Delivery area
- Official registry OCID
ocds-h6vhtk-078983Find a Tender
- Why no open competition
- Single Suppliers Technical Reasons
- Published justification
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 history
2 events · 1 release on Find a Tender · since 16 Oct 2026- Transparency notice published16 Oct 2026, 13:04 BSTUK5
- Contract signature expected27 Oct 2026, 23:59 GMTscheduled
Commercial outcome & contract awards
Published awards, contracts and bid statistics, not a forecast| Awarded to | Value | Date | Status |
|---|---|---|---|
| Housing Action Management LtdSME2 Nov 2026 – 1 Nov 2029 · up to 1 Nov 2031Extensions: The contract will include the option to extend for up to two additional periods of 12 months. The proposed commencement and expiry dates are indicative at this stage and will be confirmed within the Contract Details Notice. | £7,454,044 | — | Standstill |
Contracting authority & participating public bodies
Bidders & participating suppliers
1 commercial party on the notice- HOUSING ACTION MANAGEMENT LTDAwarded supplier
Official documents & specifications (1)
Official links; attachments are not copiedNotices published for this procedure
- Transparency notice Transparency notice on Find a Tender