Decision

The Assistant Director
– Housing has decided to directly award a contract commencing
1st August 2025 and expiring on 31st March
2026 for supported housing to homeless young parents to Magenta
Living with a contract value of £111,228.
 
 
 

Reasons for the decision

Supported Homeless
Accommodation Services assist people to develop the skills they
need to live independently and forms a crucial pathway for people,
preventing homelessness and promoting independence. It
significantly reduces levels of repeat homelessness and tenancy
failure, thereby generating financial savings across several budget
streams.
 
Magenta Living was the
incumbent supplier of supported housing for homeless young
parents.
 
Arising from the
coming into force of the Procurement Act 2023  in February 2025, and the need to await the
findings of the 5-year Homeless Review, the decision has been made
to directly award an interim contract to Magenta Living to ensure
continuity of essential services for homeless people before
undertaking a full re-procurement exercise.
 
The period covered by
this interim arrangement allows for the implications of the new
procurement regulations to be fully understood, and the findings of
the review used to shape commissioning activity over the
mid-term.
 
The interim direct
award contract begins on 1st August 2025 and is due to
expire on 31st March 2026. The value of the contract for
this period is £111,228 which will be met through the
Supported Housing Programme budget.
 
The direct award of
this contract has been sanctioned by the Head of Procurement as an
exception to the Council’s Contract Procedure Rules as set
out in the Council’s constitution at Part 4, Section 6
Contract Procedure Rules sections 12.4.1 b) a waiver of the rules
would be in the interests of the Council, be lawful, and provide
value for money. 
 

Alternative options considered

The alternative options were
 
1. 
To have allowed the previous contract to naturally
expire and not recommission. This was discounted as this would
leave the council without a key contributing resource to meet its
obligations under Housing Law.
 
2. 
To have begun a competitive procurement exercise
prior to the expiration of the previous contract, without
concluding the Homeless Review. This was discounted as the
conclusion of the Review will ensure that all future commissioning
activity is strategically relevant and based on a robust assessment
of future need.