Route 4: advertise a contract and run a buying process for high value purchases under the PCR threshold

How schools can buy high value things, including how to advertise a contract and run a procurement process.

We recommend that you get legal advice before buying high value things.

Your school’s procurement rules will set the high level. As a guide, we generally say anything over £40,000 is high value.

This guide is only for buying things under the Public Contracts Regulations (PCR) procurement thresholds. If what you are buying is over, or near to, the threshold, you need to use the PCR compliant bidding process.

If you cannot get what you need through our find a DfE-approved framework tool or another framework agreement, you must:

  • assess the market
  • prepare your contract and tender documents
  • advertise in the right places
  • consider using an expression of interest to cut the number of bids you’ll need to assess later
  • send an invitation to tender to people who reply to your advert
  • fairly assess all the bids you get, using the same process
  • choose the bid that offers best value for money
  • award the contract to the highest scoring bidder

If you need advice during your procurement, get free and impartial help and support from procurement specialists.

Assess the market

Do some research before you advertise to:

You could also:

  • speak to potential suppliers
  • ask other schools what they have done
  • consider asking suppliers to submit an expression of interest
  • publish a prior information notice in Contracts Finder, select Start and Register

If you do speak to suppliers, make sure that any information you give them at this stage is given to everyone else who bids later and that your specification does not unnecessarily favour the suppliers you have spoken to.

This is sometimes called ‘soft market testing’.

Asking suppliers to submit an expression of interest (EOI)

You could advertise, asking suppliers to submit an EOI if you:

  • want to find out how many bids you are likely to get, so you know how much work will be involved in assessing them later
  • are buying something unusual and need to know if there are people who can supply it

Consider carefully whether this is necessary or if it will save you time or money. Running an expression of interest will make the whole process take longer.

Invitations to tender

Send an invitation to the people who reply to your advert. Include:

  • a covering letter
  • a timeline
  • how to ask questions
  • how to submit a bid
  • your specification
  • a list of things you want prices for
  • your award criteria
  • your contract terms – including the level of service you want and any contract management arrangements, such as regular meetings
  • any mandatory requirements for suppliers and, if needed, an invitation for suppliers to give a demonstration

Timeline

Set deadlines for:

  • the clarification period – when suppliers can ask you questions
  • when suppliers must submit their bid
  • the ‘standstill’ period
  • when you will award the contract

When setting deadlines, give enough time for suppliers to:

  • understand your needs
  • ask questions and use the information in your response
  • write a detailed proposal with costs
  • submit their bids

If you do not give everyone enough time it may cut the number of bids you get. Think about asking suppliers how long they need when you assess the market.

Decide how you will assess the bids

Before you send out your invitation to tender, decide your ‘award criteria’ – the system you’ll use to decide which bid:

  • best meets your specification
  • is the ‘most economically advantageous’ – the one the that best combines price and quality

Give each criteria a:

  • range of scores – such as 1 to 5, with 5 highest
  • weighting – a figure you multiply the score by depending on how important the criteria is

Example If price is most important, you might give it a weighting of 5, so a score of 4 would be worth 20.

Advertising

Advertise somewhere suppliers will look, such as:

  • the government’s Contracts Finder service
  • newspapers
  • education publications or websites
  • trade magazines

Your advertisement should:

  • clearly explain what you want
  • tell suppliers what information you need
  • explain how to get an invitation to tender
  • set the timeline
  • say that you’ll be using ‘award criteria’ to give the contract to the ‘most economically advantageous tender’

Answering questions from the suppliers

You should have a ‘clarification stage’ – a time when suppliers can ask questions. No matter who asks the question, in most cases you should generally:

  • send the question and reply to all the bidders with the same information
  • anonymise the question, so no one knows who asked it

Do not reveal copyrighted or sensitive information. Ask suppliers if they are happy for you to publish their question and your answer. If they say no, consider their request and give them the opportunity to withdraw the question if you do not agree.

We recommend that you:

  • ask suppliers to email the questions
  • keep a log of the questions and the answers you gave

How to decide the winning bid

Assess the bids using the award criteria you sent out in your invitation to tender.

You must:

  • not open any bids before the deadline
  • treat all bids fairly and equally
  • record how you made your decisions so you can defend them if you have to
  • keep confidential, secure, auditable records
  • award the contract to the highest scoring bidder

Who should assess the bids

It’s best to have at least 2 people assess each bid. When they’re finished they should compare their scores and:

  • discuss where they’ve scored differently
  • reach an agreed score

This is called ‘moderation’. Be aware, the more people involved, the harder it can be to reach an agreed score.

Bring in a specialist if you need expert knowledge to assess criteria, such as a quantity surveyor for building projects or an expert in procurement law.

Keeping records

Keep a record of all scores, comments and moderation decisions. There’s software you can buy or you can use a spreadsheet.

Telling unsuccessful bidders

Tell all unsuccessful bidders who won and tell them at the same time.

Your letter should include:

  • the name of the winning bidder
  • the award criteria you used
  • the scores for the winning bid
  • the relevant advantages of the winning bid
  • their scores and feedback

If an unsuccessful bidder asks for the actual cost of the winning bid, you should provide it to them, provided that it will not give away any commercially sensitive information. There is no obligation to provide a detailed breakdown. You should:

  • only comment on their unsuccessful bid – do not share details of anyone else’s
  • try to give positive feedback

Our advice is to avoid feedback meetings. If you do decide to meet face-to-face, keep notes during the meeting and have more than 1 member of staff present.

The meeting cannot be used to reopen negotiations.

Telling the winning bidder

Write to them saying they won including:

  • the award criteria you used
  • their scores
  • why you think their bid is the most economically advantageous
  • feedback

The letter is an invitation to finalise a contract. You need to make it clear that there are no commitments, and no work should begin, until both of you have signed the contract.

If for any reason they decide not to go ahead with the contract, you can award the contract to the second-highest scoring bidder, if you reserved the right to do so in your original tender documents, or you can rerun the process.

Challenges from unsuccessful bidders

If an unsuccessful bidder challenges the fairness of the contract award decision or process, contact them, explaining that you have conducted a fair assessment process and that you have kept good records.

If they then make a formal challenge, do not finalise the contract. Seek legal advice first.

Award the contract

If there are no legal challenges, tell the successful supplier that you’re giving them the contract. Your school or organisation and the supplier should then sign the contract.

If they agreed to use your terms and conditions, check that the signed copy they send back to you is exactly the same as the copy you sent them.

The last copy of the terms and conditions sent by either side is the one that is legally binding, so make sure that you’re the last to sign.

If you placed an advert in Contracts Finder, place a notice of your contract award there too.

Set up a meeting with the supplier to finalise the management and payment arrangements, clarify key performance indicators and agree how you will work together.

There should be no changes from what was in the original invitation to tender.

Abandoning

On rare occasions, you may need to stop the bidding process.

If you stop the process while suppliers are preparing, or have submitted their bids, you should tell them and include your reasons.

The later in the process you abandon your procurement the greater the risk of you receiving a legal challenge where bidders may seek reimbursement of their bid costs.

You should make sure that your tender documents make it clear that you have the right to abandon the process at any time without any liability to the bidders.

You cannot abandon the process because the highest-scoring bidder is not the supplier you want.