Welcome to the next instalment in the ‘Tender Truths’ series – when we explore the key questions, decisions and challenges schools and trusts face when reviewing their catering and cleaning provision and preparing to go to tender.
Previously, we looked at whether in-house or outsourced provision is the right fit, why September is the best month to go out to tender and whether the cheapest option really delivers the best value. In this instalment we’re looking at how should you actually run the procurement process?
There are three common routes:
- Using a procurement framework
- Appointing a consultant or specialist adviser
- Managing the process in-house
Each can work well. The right choice will depend on your requirements, internal capacity, appetite for risk and what you’re ultimately trying to achieve.
Option 1: Using a procurement framework
Frameworks can provide a structured and relatively straightforward route to market. Rather than starting the procurement process from scratch, schools and trusts can access suppliers that have already been through a procurement exercise.
The potential benefits
- A more straightforward process:A framework can reduce the administrative work involved in setting up a procurement exercise.
- Access to pre-procured suppliers:Suppliers will already have met the framework’s requirements and gone through its procurement process.
- A defined process:For trusts managing multiple schools, a framework can offer a clear structure and timescale for progressing procurement.
The potential drawbacks
- Less choice: A framework may limit the suppliers, lots and solutions available to you, so it isn’t necessarily a shortcut to finding the right option for your school or trust.
- Not always the right fit: It’s important to understand exactly what the framework covers and whether it reflects the specific requirements of your schools.
- Less flexibility: The simplicity of a framework can come at the expense of flexibility. If your requirements are complex or you’re looking for a genuinely tailored solution, consider whether the framework gives you enough scope to achieve that.
- Cost: It can cost as much as five times more than going to tender via a consultant or yourself. At a time when cost savings are vital, this may be a deciding factor in utilising the other routes to tender.
Option 2: Appointing a consultant or specialist adviser
A consultant can take much of the work away from your internal team, from reviewing your current service and developing a specification through to managing the tender and supporting evaluation.
The potential benefits
- Expertise and experience:A specialist should bring knowledge of the market, current challenges and common pitfalls, as well as experience of running similar exercises.
- Independent challenge:An external perspective can be valuable when reviewing an established service. A good adviser should challenge assumptions and help ensure the specification reflects what you actually need, rather than simply reproducing what you already have.
- Less pressure on internal teams:Tendering can be time-consuming. External support can free up school or trust teams to focus on their day-to-day responsibilities.
The potential drawbacks
- There is a cost: Consultancy comes at a cost, so the question shouldn’t simply be ‘What will it cost?’ but ‘What value will it create?’
- The scope can vary: It’s important to understand exactly what you’re buying. Will the consultant simply manage the procurement process, or will they help you understand your current provision, develop your requirements, assess quality and support implementation?
- Independence matters: A consultant should be able to explain their methodology, how they are paid and whether they have any relationships or commercial interests that could influence their recommendations.
Option 3: Doing it yourself
For some schools and trusts, managing the process internally can make perfect sense.
You know your schools, pupils, staff and current provision better than anyone else. If you have the procurement expertise and internal capacity, there is no reason why you can’t run a successful tender yourself.
The potential benefits
- You retain control: Your team remains responsible for the process, with decisions made internally.
- You know your requirements: Your understanding of the individual circumstances of your schools can be invaluable when developing a specification and assessing bids.
- Potentially lower upfront costs: You aren’t paying an external consultant, although it’s important not to overlook the internal resource involved.
The potential drawbacks
- It requires capacity: Running a tender properly takes time – from preparing the specification and gathering data to evaluating bids, managing clarification questions and supporting implementation.
- You need the right expertise: Do you have the experience to test whether a supplier’s proposal represents good value? Can you benchmark the offer against the market? Are you confident your specification will deliver what you need?
- Internal resource still has a cost: While you aren’t paying an external consultant, the time required from your team comes at a cost – particularly if senior staff are involved.
Which route is right?
There is no one-size-fits-all answer. The right route will depend on various factors including:
- The size and complexity of your requirement
- The number of schools involved
- Your internal procurement expertise
- The time and resource available
- How much flexibility you need
- The complexity of your current provision
- Your appetite for external support
Look beyond the upfront cost
Whichever route you choose, don’t judge it solely on the initial price. Consider the whole cost and potential value of the process.
How much internal time will it require? What risks could arise? Will you have enough market insight to assess the bids properly? Will the process help you secure a service that works for your schools over the longer term?
A procurement exercise shouldn’t simply be about getting from specification to contract as quickly as possible. It’s an opportunity to ask whether your current provision is delivering what your school/s need, whether your specification reflects those needs and whether the market can offer something better.
Find out more about how Litmus can support your school or trust through the tendering process here.
The Litmus team
