Timing is one of the most important factors in running a successful above the threshold procurement. Above threshold procurement requires a longer and more structured timetable. Unlike below threshold tenders, there are specific compliance requirements that must be built into the process. Allowing nine to twelve months for an above threshold tender is generally recommended.
Lorraine ran a comprehensive webinar that covered planning cycles for both above and below the threshold tenders. You can watch that webinar here.
Start With The Contract Date
Before preparing the timetable, it is important to decide when the new contract should begin. Many schools are drawn to a 1 September start date, particularly where they want contracts to align with the academic or financial year. However, this can be a difficult date because many other schools and Trusts are also trying to start contracts at the same time.
Good suppliers only have a limited amount of human resource available to mobilise new contracts. If they have already taken on several September starts, they may become unavailable or even withdraw from a tender process.
A 1 January start date can also be problematic. Christmas is one of the few times of year when schools and operational teams properly down tools. Mobilising a contract over this period can be difficult, especially for caretaking, estates and other site-based staff.
More practical start dates may include:
- February half-term
- Easter
- May half-term, depending on the service
February half-term can be a sensible alternative to January, while Easter often provides more time for mobilisation. May half-term may also work well, although this depends on what is being procured. For catering, for example, there are arguments both ways: changing contractor shortly before the end of term may feel unhelpful, but it can also give the new supplier time to settle in before September.
The Main Stages In An Above The Threshold Tender
The above threshold tender typically uses the competitive flexible procedure which, as the name suggests, offers some flexibility around how you run your tender. At Minerva we have continued to structure our tenders in two key stages (like the Restricted Procedure under the old Public Contracts Regulations 2015):
- Stage 1: Procurement Specific Questionnaire
- Stage 2: Invitation to Tender
Before the two key stages: early planning
Before the formal procurement begins, there is a significant amount of preparation and information gathering to complete. This early activity may include:
- Reviewing the existing contract
- Gathering service information
- Completing internal checklists
- Collecting staffing information
- Preparing supporting documents
- Planning governance and sign-off routes
- Considering the preferred contract start date
A contracts register is especially useful because it helps schools and Trusts identify renewal dates early and work backwards from the desired start date.
Stage 1: Procurement Specific Questionnaire
The first key stage in the above threshold timetable is the Procurement Specific Questionnaire, often referred to as the PSQ. This stage is used to assess the capability and capacity of bidders. It is mainly about looking backwards at whether suppliers are suitable and fit for purpose. It is not yet the fully bespoke tender response stage.
This stage is mandated by Government, and a PSQ template is available from the Government’s Procurement Pathway. Given that bidders are generally familiar with this stage, there may be fewer clarification questions than at the later tender stage.
Purpose of the PSQ stage
The purpose of the PSQ stage is to create a manageable shortlist of suitable bidders before moving into the more detailed second stage. This is important because an above threshold tender cannot simply be invitation only in the same way as a below threshold tender. Without a shortlisting stage, a school or Trust could end up with a large number of bidders attending site visits, which would be difficult to manage. It also puts bidders off. After all there can only be one winner and if a supplier thinks they’re up against c. 15 other companies they may decide not to waste their time and move on to an opportunity where they have a greater percentage likelihood of success.
Timing of the PSQ stage
For compliance purposes, this stage must allow a minimum of 25 days where tenders are submitted electronically and all associated documents are provided at the same time as the tender notice.
However, that’s a minimum timeframe and we would recommend allowing around 30 to 35 days. This gives bidders enough time to respond properly.
Clarifications, submissions and analysis
Although there may be fewer clarification questions at PSQ stage, the timetable still needs to allow for them. This stage includes:
- Issuing the UK4 Tender Notice on the Find a Tender Service
- Issuing the PSQ
- Managing any clarification questions
- Receiving PSQ submissions
- Analysing responses
- Sharing results with the client
- Confirming the shortlist for stage the Invitation to Tender (ITT) stage
The shortlist should be confirmed carefully because only those bidders will move forward to the more detailed ITT stage.
Using the summer period effectively
Having the PSQ stage run over the summer can work well. You can set the tender live before the summer so that the PSQ stage runs during the break, allowing the process to be ready for the next stage in September. Although it will need someone to be available to answer any clarification questions that bidders raise.
Alternatively, you can begin information-gathering activity before the summer and require completed “checklists” back by the end of September. This gives those completing the information more time and helps avoid rushed preparation.
Stage 2: Invitation to Tender
The second key stage is the Invitation to Tender, or ITT. This is the more detailed and bespoke part of the procurement. Whereas the PSQ stage is mainly about capability and capacity, the ITT stage is about how bidders will meet the specific requirements of the school or Trust. It is more forward-looking and focused on the actual delivery of the contract.
Purpose of the ITT stage
The ITT stage allows shortlisted bidders to prepare full submissions based on the school or Trust’s requirements. This stage usually includes:
- Issuing the Invitation to Tender
- Holding a site visit (where appropriate)
- Managing clarification questions
- Issuing clarification responses
- Receiving bids
- Analysing submissions
- Sharing analysis
- Holding a presentation day
- Awarding the contract
- Completing compliance reporting and issuing notices on the Find a Tender service
Timing of the ITT stage
For compliance purposes, the ITT stage must also allow a minimum of 25 days where tenders are submitted electronically. For the purposes of planning, 25 days should be treated as the minimum. For this stage we usually recommend a minimum of 42 days.
Bidders should be given enough time to attend the site visit, review the documentation, ask questions and prepare detailed submissions.
Site visits and clarifications
The site visit remains an important part of the process. It allows bidders to understand the school environment and the practical realities of delivering the service.
Clarification questions are also likely during this stage because the ITT is more bespoke. Bidders will be responding to the specific requirements of the contract, so they may need additional information before they can submit accurate proposals. The timetable should allow enough time for:
- Bidders to raise questions
- The school or Trust to respond
- Bidders to use the answers in their submissions
Evaluation and moderation
Once ITT submissions are received, they need to be analysed carefully. You must allow ample time for evaluation and moderation at every stage. This may include:
- Reviewing bids
- Draft scoring
- Moderation
- Sharing analysis with relevant stakeholders
- Confirming which bidders should attend presentation day
Stakeholders may include governors, trustees, colleagues or senior leaders. Their availability should be considered from the outset so that sign-offs do not delay the process.
Presentation day
After the initial evaluation, a further shortlist may be taken through to presentation day. We normally shortlist down from five bidders to three. However, you must make sure that you stick to whatever you have outlined in your tender documentation. If you said three then it should not be two or four, for example.
Presentation days should not be scored. They should be used to clarify information and ask questions of shortlisted bidders. The purpose is to support understanding, not to create another scored stage.
After the two key stages: award, standstill and mobilisation
Once the presentation day has taken place and the preferred bidder has been selected, the school or Trust must notify bidders using Assessment Summaries and publish the UK6 Contract Award Notice.
An eight working day standstill period must then be observed. This is working days, not calendar days. This change from calendar days to working days gives bidders a fairer opportunity to raise concerns, particularly where the period crosses weekends, Christmas or New Year.
We would recommend adding an extra day if assessment summaries and notifications are issued late in the day. If documents are issued at 6pm, most of the first day has effectively been lost.
Mobilisation
After the standstill period, the contract moves towards mobilisation. However, even a timetable beginning in June for a February half-term start may still leave limited mobilisation time.
In that scenario, an Easter start may be more realistic because it allows more time after the procurement process has concluded.
Mobilisation may need to account for:
- TUPE consultation
- Contract preparation
- Contractor planning
- Operational handover
- Legal agreements
- Local Government Pension Scheme arrangements
The Local Government Pension Scheme can take a very long time to resolve and, in some cases, may not be sorted before the contract starts. The sooner this activity begins, the better.
Legal agreement
Don’t forget to leave ample time for the signing off of the legal agreement (contract) and the publication of the UK7 Contract Details Notice.
Final thoughts on above threshold tenders
Above threshold tenders need careful planning because they include mandatory timings and more formal stages. The two key stages we use — the PSQ and ITT — each have an important role.
The PSQ stage helps identify suitable bidders. The ITT stage allows those bidders to submit detailed proposals based on the school or trust’s specific requirements.
The key message is to start early. A nine to twelve month timetable gives schools and Trusts the best chance of running a compliant process, attracting quality bidders, allowing proper evaluation and giving the successful supplier enough time to mobilise effectively.
