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When reviewing contracts, it can be tempting to simply renew with your current provider - many fearing the volume of work when managing a full tender process and others finding themselves unsure of what the process actually involves. However, this can leave your School or Multi-Academy Trust with a provision that no longer suits your needs and/or a service that is substandard.
Our points below provide guidance in successful tendering within the education sector, and explore whether a full tender process is required or if an alternative option could suit.
1. Is a tender necessary?
Regularly reviewing contracts and services ensures that your current provision still meets your requirements and that your setting continues to run effectively. Tenders can involve a huge amount of time and unexpected costs. However, if the value of the contract is below £213,477 (*note: the value of contracts must now include VAT), it’s not necessary to run a full tender process. Instead, consider a mini competition by asking several providers to supply a quotation and brief overview of their service or to answer several simple questions.
2. Consider expertise
If a tender is necessary, but don't have the experience in-house to design and manage a fully OJEU-compliant tender process, you may need to consider bringing in a consultant or company to manage the process. This support will ensure you have the necessary expertise whilst preventing your employees from having to manage the process alongside their day-to-day role.
3. The benefits of using a framework
The time and cost associated with tenders shouldn't be underestimated, with many ranging anywhere from £5,000 to £25,000. Managing the process via a framework, such as Crescent Purchasing Consortium (CPC) or Churchmarketplace (CMP), can save you a huge amount of time and money.
All providers on the framework will have undertaken rigorous due diligence and a tender process that is fully compliant with OJEU and Public Sector regulations. As you know the work has already been done for you, this allows you to by-pass much of the process and simply run a mini-competition or even award directly.
4. Speak to other trusts
Asking other trusts for advice and seeking copies of previous specifications can act as a great starting point. You'll just need to read the specification carefully and adapt it to meet your specific needs.
5. Consider multi-year contracts
With all of the work involved in the tender process, it’s unlikely to be something that you want to repeat annually. It might be worth considering a multi-year contract, but with a break clause or option for extension to retain flexibility and the possibility of reduced or fixed costs.
6. Advertise
You may already have a provider in mind, or an idea of companies that provide the required services, but there may be others that you haven’t considered. By advertising your tender well, you'll stand a better chance of attracting all potential providers, including those unknown who could offer you an even better service.
7. Ensure you have adequate time
A tender process doesn’t have to be a long, drawn-out process, and you can run this over a relatively short period. However, you will need to factor in enough time to advertise, onboard, and make decisions well in advance of the contract start date. You'll then have greater flexibility, should there be any delays, and avoid rushing the process.
8. Consider using a Pre-Qualification Questionnaire (PQQ)
If time is of the essence and you don't have the capacity to read through countless Invitation to Tenders (ITT), it may be beneficial to use a PQQ. This simple exercise allows you to easily determine whether the provider can deliver the service that you require, before continuing any further with the process. Ultimately, this allows you to eliminate any unsuitable providers and prevent time wasted by either party.
