Scope
Reference
DN790038
Description
Cornwall Council is commissioning Supported Temporary Accommodation (STA) services to support homeless households who are owed a housing duty under the Homelessness Reduction Act 2017. This contract forms part of a strategic recommissioning of Adult Social Care (ASC) funding into the Planning and Housing Directorate, aligned with the Council's Preventing Homelessness and Rough Sleeping Strategy 2025-2030. Under this contract, 21 units of STA will be delivered across Cornwall. Accommodation will include onsite support as a condition of occupation, tailored to meet the needs of vulnerable individuals and families. Services will be delivered using a trauma-informed, strengths-based, and person-centred approach, with a focus on tenancy readiness, independence, and sustainable move-on outcomes. This procurement falls under the Light Touch Regime (LTR) as defined in the Procurement Act 2023, applicable to health, social, and related services. The relevant Common Procurement Vocabulary (CPV) codes are: 85311000-2 - Social work services with accommodation 85000000-9 - Health and social work services
Contract 1. Supported Temporary Accommodation (STA) - Home Group Ltd
Supplier
Contract value
- £1,604,306.09 excluding VAT
- £1,925,167.31 including VAT
Above the relevant threshold
Earliest date the contract will be signed
16 February 2026
Contract dates (estimated)
- 1 April 2026 to 31 March 2031
- Possible extension to 31 March 2036
- 10 years
Description of possible extension:
2 optional further extension periods of 3 years and 2 years (5+3+2). Total contract length 120 months
Main procurement category
Services
CPV classifications
- 85311000 - Social work services with accommodation
- 85000000 - Health and social work services
Contract locations
- UKK3 - Cornwall and Isles of Scilly
Participation
Particular suitability
- Small and medium-sized enterprises (SME)
- Voluntary, community and social enterprises (VCSE)
Other information
Description of risks to contract performance
Exclusive‑Rights Dependency:
The contract relies on the supplier's ownership or long‑term leasehold of the accommodation, meaning only the supplier can lawfully deliver services within those properties. This creates an inherent dependency and limits alternative delivery options if performance issues arise.
Limited Market Capacity:
Soft market testing confirmed a scarcity of alternative providers with suitable properties, increasing risk of service disruption if the supplier withdraws or underperforms.
Occupancy and Throughput Risks:
Savings and outcomes rely on timely occupancy by households transitioning from emergency accommodation. Slow throughput may reduce financial and operational benefits.
Operational Delivery Risks;
Failure by the provider to maintain adequate staffing, deliver support safely, or meet safeguarding and compliance standards could impact service quality.
Financial and Inflationary Pressures;
Support costs depend on benchmarked ASC rates and annual SPPI indexation; significant inflation could affect affordability or service viability. Mitigation: defined indexation parameters and ability to vary contract terms where legislation or funding changes.
Legal Challenge Risk (Direct Award);
Direct award routes may attract scrutiny. Risk is mitigated through robust reliance on exclusive‑rights justification, publication of this transparency notice prior to award, and adherence to PA2023 Section 41 requirements.
Supplier Withdrawal or Organisational Change:
Any withdrawal or major change in the supplier's operating model could affect continuity.
Compliance With Future Regulatory Requirements:
Supported Housing Regulatory Oversight Act requirements may introduce new licensing and monitoring duties. Failure by the provider to comply could impact service continuity.
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Direct award
Special regime
Light touch
Direct award justification
Single supplier - intellectual property or exclusive rights
Direct award required as supplier owns/controls the accommodation units and holds exclusive rights to deliver support services within those properties under Procurement Act 2023 Schedule 5.
Supplier
Home Group Limited
- Public Procurement Organisation Number: PRDP-8748-DBHZ
One Strawberry Lane
Newcastle upon Tyne
NE1 4BX
United Kingdom
Telephone: 0191 594 8457
Email: Christine.morrison@homegroup.org.uk
Website: https://www.homegroup.org.uk
Region: UKC22 - Tyneside
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): Yes
Contract 1. Supported Temporary Accommodation (STA) - Home Group Ltd
Contracting authority
Cornwall Council
- Public Procurement Organisation Number: PYRH-9827-DWLP
County Hall
Truro
TR1 3AY
United Kingdom
Contact name: Andrew Trout
Telephone: +44 1872 322222
Email: Andrew.Trout@cornwall.gov.uk
Website: http://www.cornwall.gov.uk
Region: UKK30 - Cornwall and Isles of Scilly
Organisation type: Public authority - sub-central government