Carers of people with a disability have accused the NSW Government of bungling its sell-off of disability services.

The State Government currently runs about 300 group homes in NSW and now that service has been put out to tender under the shift to the National Disability Insurance Scheme (NDIS).

This sell-off has left many residents and their families anxious and uncertain about their future.

Families of residents said they were angry the process had been structured so they have only one choice in many areas, and often it was a larger organisation.

Mother Kerry Stratton said it undermined one of the main principles of the NDIS, which was to give people choice.

Her son Matthew has severe autism and has been thriving in a State Government group home for the past decade.

"I received an email from the department at 7:00pm on a Friday night informing me that they had selected a private provider to run my son's group home," she said.

"There was to be no choice and we were to be completely ignored and marginalised.

"What they have done is dumped their entire disability service, which they have been running for decades, and run."

Group homes are specially fitted out residential houses for people with high needs and are staffed with full time carers.

Matthew Stratton lives in Wollongong where the Government has chosen House With No Steps as his new provider after an expressions of interest process.

His mother said past experiences with day programs run by this company had not been good.

"Not turning up for work, not turning up for [a] program, deciding 'oh we can't deliver this anymore' at no notice, and these things are not acceptable," she said.

The organisation declined to comment because of the tender process.

Ms Stratton said along with other parents in her son's home she had her hopes pinned on a smaller provider to give her son the best care.

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'Statewide anger' over lack of choice in providers

Jim Simpson from the NSW Council for Intellectual Disability said Ms Stratton was not alone.

"There's statewide anger that we aren't getting to choose our own service providers," he said. "It's the opposite of the ideals of the NDIS."

Matthew Stratton lives in a group home in Wollongong ( Supplied )

Ms Stratton blamed the State Government for poorly structuring the tender so good providers became ineligible because of their size and funds.

Parents like Ms Stratton have been called to meetings around the state this month.

Ms Stratton said the Government's communication to date had been subcontracted to firm KPMG and had been sporadic and "desperately poor".

"We were spoken to very rudely and basically dismissed, it was a dreadful, dreadful meeting," she said.

NSW Disability Minister Ray Williams confirmed there was only one bidder in many areas but said they would only hold contracts for a transition period.

He said there would be new calls for tenders within 12 months to two years.

'More choice' as more people move to NDIS

Mr Williams said the Government was only about a third of the way through its transfer to the NDIS and more options would emerge ahead of the full rollout in 2019.

"At this point in time we may only have one provider in a certain area but as it increases as more people transition into the NDIS, we will see more service providers enter the market and that will give people more choice in those particular areas," he said.

He rejected suggestions the tender had been poorly structured and said the State Government's main priority had been keeping staff and residents together.

"Choice of provider has been our fundamental priority in ensuring that the people that we contract to provide the services are the very best providers in the disability space," he said.

"It is the quality and the credibility of the service provider that we place the greatest emphasis on."

Mr Williams said people who were unhappy in the meantime did have the choice to leave their houses to seek a different provider.

"He may have to move house but that may be choice he has to make."