For schools, Multi-Academy Trusts (MATs), other organisations and businesses, the question of whether they should benchmark or tender their cleaning or catering services often starts the same way: Are we getting value for money from our catering or cleaning provider?
Traditionally, the answer was simple – put the service out to tender. But today, school, MATs and organisations are increasingly recognising that tendering isn’t always the right first step.
In many cases, the issue isn’t the provider itself. Instead, it’s outdated systems, unclear service specifications, inefficient processes or operating models that no longer meet the needs of the organisation.
That’s where benchmarking can play a valuable role.
Benchmarking provides a clear, data-led understanding of how an operation compares to the wider market – not just in terms of cost, but also service quality, efficiency, performance and delivery standards. It enables organisations to make informed decisions while minimising unnecessary disruption.
So, when should you benchmark – and when is a full tender the better option?
Three reasons to benchmark
1. Market testing without the disruption
Benchmarking allows schools, MATs and organisations to understand whether they are receiving value for money without immediately entering a full procurement exercise.
Importantly, value isn’t just about cost. Effective benchmarking analyses a broad range of operational metrics, including service levels, efficiencies, staffing structures, compliance, innovation and quality measures.
Working with an experienced consultancy gives organisations access to current market intelligence and sector-specific data that can quickly highlight whether an operation is performing competitively, or where improvements may be needed.
For many schools and organisations, this provides the clarity they need without the upheaval of a tender process.
2. Protecting strong partnerships
A tender process can be disruptive for both operations and employees. New contracts often mean new systems, new ways of working and a period of adjustment while providers familiarise themselves with the organisation.
Where relationships with providers are strong, collaborative and productive, benchmarking can help preserve and strengthen those partnerships rather than unnecessarily replacing them.
In uncertain times, stability matters. A service provider that understands the culture, operational challenges and long-term objectives or a school or organisation is valuable. Benchmarking allows both parties to work collaboratively to identify improvements, efficiencies and innovations without starting again from scratch.
3. Learning from the wider sector
Benchmarking also provides valuable insight into how peer organisations are operating.
Understanding what others in the sector are doing – and how they are responding to challenges – helps schools, MATs and organisations make more informed decisions about future working practices, operational structures and service delivery models. It offers the opportunity to identify best practice, spot potential risks early and assess whether existing models remain fit for purpose.
When benchmarking leads to tendering
Benchmarking and tendering are not always mutually exclusive. Sometimes, benchmarking often becomes the foundation for a future tender exercise.
This was the case for the Lighthouse Schools Partnership, which initially engaged us to benchmark its catering provision.
As the Trust expanded from six schools, it inherited multiple catering and cleaning providers operating under different contracts and delivery models. Over time, this became increasingly complex to manage.
We conducted a benchmarking exercise that enabled the Trust to compare its costs and specifications against sector market averages. The findings provided clear visibility of operational inconsistencies and opportunities for improvement and so the Trust decided to move towards a single central catering contract across all schools.
In this instance, benchmarking provided the evidence and strategic direction needed before moving confidently into tendering. At Litmus, we call this the ‘Litmus Test’ – an approach that looks beyond the surface to uncover improvement opportunities others often miss.
You can watch a short video on what our Litmus Test involves below…
Three reasons to tender
1. Performance issues cannot be resolved
If service delivery consistently falls below expectations and attempts to improve performance have failed, tendering may be necessary.
Persistent issues around quality, compliance, communication or operational delivery can indicate that the existing arrangement is no longer sustainable. A competitive tender process creates an opportunity to reset expectations and identify a provider better aligned to the organisation’s needs.
2. Operational needs have changed
Schools, MATs and organisations evolve over time. Growth, restructuring, mergers or changes in strategy can all impact whether an existing contract remains suitable.
If the scope of services has significantly changed, tendering may be the most effective way to ensure contracts are aligned to current and future operational requirements. This is particularly relevant for growing MATs or expanding organisations managing increasingly complex estates.
3. Contracts are outdated or lack value
Some contracts simply no longer reflect current market conditions, innovations or best practice.
If specifications are outdated, service levels unclear or pricing structures no longer competitive, tendering can help organisations modernise their approach and secure better long-term value. A well-managed tender process can also encourage fresh ideas, innovation and new efficiencies from the market.
Deciding the best route
Ultimately, the decision to benchmark or tender should come down to one key question:
Do you need evidence to improve what you already have – or is it time for a complete change?
Benchmarking provides clarity, insight and stability. Tendering provides transformation and reset opportunities.
Find out more about how our benchmarking services can help assess the value and performance of your current catering or cleaning provision here, or explore our tender management services here.
The Litmus team
