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Genesis to launch £20bn procurement aggregator

Genesis is to launch a £20bn aggregator for public sector procurement, to be managed by construction group Wates, Inside Housing can exclusively reveal.

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Genesis to launch £20bn procurement aggregator

The housing association will set up a new, separate company to act as a middleman between public sector organisations – including housing associations – and the market, aiming to use volume to drive down prices and increase competition.

Genesis estimates that the organisation can manage £20bn worth of contracts, though it says this could rise to £30bn. Wates was the winning bidder to set up and manage the company, bidding £750,000.

At the moment, public sector organisations use ‘frameworks’ to procure goods and services. These consist of agreements with a provider or range of providers that make lengthy tendering processes unnecessary and, like the new company, aim to aggregate volume.


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For example, Hyde Housing has a development framework that other housing associations can use to procure from 23 construction companies. Over the four years that it runs, public sector organisations can use it to procure construction services according to the terms in the framework.

Instead, the new company being set up by Genesis, which has yet to be named, will negotiate deals with various providers based on the volume of demand already in the aggregator from the public sector and keep that service available for any organisation that wishes to procure it.

Genesis believes that this will enable housing associations and other participants to get better deals on procurement. It will also be easier for new providers to access the market, as they might be too small to get onto existing frameworks.

The new company will also put between 20% and 50% of its profits into a ‘social value fund’. This will be managed by social value organisation Firesouls, which has worked with Genesis on procurement frameworks in the past.

Speaking exclusively to Inside Housing, Paul Jameson, procurement director at Genesis, said: “People are frustrated that they’re not getting the best value, that they’re not getting the best supply. People are using frameworks that we set up already, so we know what the sector wants and needs.”

Using the example of mobile phone services, Mr Jameson added: “We could say we’re going to have a deal with O2 over the next two years. We’d say give us your best deal, better than everyone else and we’ll sell it to the public sector.”

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