VIEWS & OPINION Demystifying the procurement process Comment by PHILLIPPA DE’ATH, Chief Revenue Officer at Arbor
Effective procurement is vital for every school and trust, both from a compliance perspective and to ensure you can obtain the best services to support your organisation. However, there are many myths and misconceptions regarding the complexities involved in procurement. This can make the idea of going through the process seem daunting, particularly when considering intricate systems like MIS, which are critical to the effective running of a trust.
With schools and trusts currently having to operate within tighter budgets and stretched resources, it is more important than ever to use transparent, stress-free and easy-to-understand procurement processes. Leaders can then be equipped with the knowledge and support to successfully acquire services that help them operate as efficiently and effectively as possible and meet their objectives.
Different pathways to procurement
There are four ways to procure services – you can go through a procurement framework as advised by the Department for Education (DfE), directly award if it is under a certain value or run tenders. Knowing when to use which avenue can seem tricky, so the DfE has laid out some guidelines.*
Trusts will also need to consider the requirements of their scheme of delegation as well as the Government’s Public Contracts Regulations (PCR) threshold of £213,477 which can change every year and are different for different types of purchases.
Option 1: Use a framework agreement
Also known as mini-competitions, framework agreements are the preferred option as outlined by the DfE. They help schools procure services from a list of pre-approved suppliers, with agreed terms and conditions and legal protections. They are a good option to save you time and money as the research and due diligence are also already done for you.
However, if you cannot get what you need through a framework agreement, you have three other options depending on the value of the services you would like to procure:
Option 2: Research the market and directly award This is a good option when the buying value is lower, usually under £40,000, but this figure is dependent on your school policy. This method requires you to source at least three quotes from different suppliers before awarding the contract.
Option 3: Run your own buying process
This method should be used if the buying value is higher, usually over £40,000, depending on your school’s policy, but below the PCR threshold. Here you can assess the market, prepare your tender documents and notably invite suppliers to submit bids which reduces the number of bids you will receive and need to review. You can then award the contract to the highest-scoring supplier.
Option 4: Run a public PCR-compliant process This process is best when the value of the services is over the PCR threshold of £213,477 and legal advice is often advised. For this process, you will need to advertise the contract notice using the UK e-notification service and assess all bids received before awarding to the highest-scoring supplier.
February 2024
To get the most out of any tender or buying process, start by outlining your trust’s vision and challenges, rather than a list of functions as this will help to tailor your specification. Spend time researching the market and meeting different suppliers to understand what’s out there, and how it aligns with your objectives. Similarly, using procurement templates can save valuable time, but these will also need to be customised so you can acquire a service that helps you solve your challenges.
Myth-busters and top tips
Alongside the logistics of procurement, there are an array of myths about the procurement process. However, transparency and knowledge are essential for effective procurement. Here are some top myth-buster tips to help you navigate your next procurement successfully.
• Speak openly to potential suppliers. It is important to understand the opportunities available in the market so you can procure the service that is right for you. If you only ask for what you already have, you may miss innovative features that are better suited to your needs, or you may inadvertently create a bias towards your existing supplier.
• Speak to current MIS clients to find out about their user experience and how easy different MIS are to integrate. It is essential for your staff to be able to pick up new systems and learn how to use them easily.
• Assess your other existing third-party providers to see which MIS would integrate most effectively with them. This is also a useful opportunity to see what systems works well for you and if there are any other third-party systems that an MIS could replace, helping you to save costs.
• Know what is possible to help ensure value for money. While education budgets are tight, investing in the best product, rather than the cheapest, can provide greater long-term savings due to operational transformation. For example, MIS can often replace third-party apps, making cost savings outside of your contract.
• Use an effective weighted scoring system that accounts for value savings to help you achieve this.
• Take the time to understand the responsibilities of both buyers and suppliers to navigate the procurement process safely and confidently.
• Don’t be afraid of direct awarding or awarding through frameworks if you can prove that one supplier can meet your needs.
In the current economic climate, it is vital that education leaders feel equipped and prepared to procure services compliantly and successfully. By doing your research, talking to a range of suppliers and tailoring your approach to align with your objectives, you can ensure the effective running of your organisation to best support your staff and pupils.
*
https://www.gov.uk/guidance/buying-for-schools--2#use-a- dfe-approved-buying-solution
www.education-today.co.uk 21
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44
