The Cabinet Member for Finance and Corporate Services approved the re-procurement of a new housing management system and the award of a contract to NEC Software Solutions UK Limited. This decision ensures the continued operation of essential housing services, including rent collection, repairs, and support for homeless households.

NEC Housing Re-procurement

Councillor Johann Beckford, Cabinet Member for Finance and Corporate Services, approved the commencement of a new procurement process for a housing management solution and the subsequent award of a contract to NEC Software Solutions UK Limited. The decision, made following consideration of exempt information, will see a new four-year contract implemented from 1 August 2026 to 31 July 2030, at a cost of £561,400.

The primary reason for this decision is to ensure the continued operational capacity of the council's housing services. The current contract for the housing management solution was set to expire on 31 July 2026, with no provision for extension. Failure to secure a new contract would have left the council without a support and maintenance agreement for its core system, exposing it to significant operational, financial, and compliance risks. This includes the potential loss of vendor support, software updates, and specialist technical assistance, which are crucial for maintaining the system and delivering statutory housing services. Critically, repairs and maintenance delivery would also be affected, as no works orders could be issued to contractors, leaving residents without essential repairs. In essence, the council would be unable to operate key landlord functions, meet legal obligations, or maintain service continuity across its housing estate.

The council opted to use the Vertical Application Solutions (VAS) framework, managed by Crown Commercial Services¹, as the most efficient procurement route. This framework offers pre-set terms and conditions and has already completed supplier vetting, aligning with the council's statutory duties for housing management.

Alternative options considered included doing nothing, which was deemed not viable due to the imminent expiry of the current contract. A mini-tender competition using the G-Cloud framework was also considered but found to be more expensive and resource-intensive than using the VAS framework. A full procurement process was not pursued as it was considered that the required resources and time were not justified when compliant framework agreements were available. The VAS framework also offers the benefit of government-favourable terms and conditions through the new Public Sector Contract (PSC). The report noted that the housing application market has significantly shrunk, with only two or three potential alternative suppliers for a council of its size.

The new contract includes a comprehensive suite of NEC Housing modules, covering areas such as rent collection, service charges, repairs, allocations, homelessness support, and asset performance. The annual cost of £140,350 will be funded from the Digital & Change revenue contracts budget, with a recharge to the Housing Revenue Account (HRA) managed through the corporate recharge model.

The decision is expected to contribute to the council's Homes for the future outcome, focusing on reliable and customer-focused resident housing services, and will support the measurement of key performance indicators such as repairs fixed right first time and the number of households in temporary accommodation. The report also stated that the re-procurement is a financial and commercial decision and does not directly impact carbon emissions or climate change, although maintaining digital infrastructure can indirectly support reduced reliance on carbon-intensive in-person processes.