The Care Sector
The call for care tenders has increased over the last few years, not least of which is because the need for care support (also known as domiciliary support) of the elderly is increasing year on year as the average lifespan of UK residents continues to rise. Procurement for the care sector has always been there, but now there are increasing opportunities for care providers of all sizes, whether they be small start-ups or large, established agencies.
Traditionally, care tenders were enormous, with contract values out of the realm of many care providers. However, The Health and Social Care Act 2012 had a huge impact on how healthcare is organised and delivered. Where once the responsibility for sourcing and delivering services belonged to the central government, these days it is up to local NHS organisations, or Clinical Commissioning Groups (CCG) as they are known.
Local NHS organisations now work closely with local Councils to administrate the way health services are delivered within their localities, which has had a big effect on how procurement has developed in the care sector. According to recent government figures, NHS Trusts are collectively spending a staggering £9 billion a year in the procurement of goods and services, and engaging SMEs (Small, Medium and Micro businesses) is helping them to improve efficiency across the board.
Understanding the different kinds of care tenders
The term ‘care’ covers a broad range of services, such as supported living for vulnerable children and young adults, support services for additional needs and care of the elderly. The need for these services only continues to grow, and the way local authorities are choosing to structure their care tenders has evolved too. If you are looking for care tenders within your region, these are the types of tenders to look out for:
-
Framework Agreements
For many businesses (SMEs and large Corporates alike) Frameworks are the perfect answer to getting established in the public-funded care sector. There are many different frameworks to be applied to, which include the NHS Supply Chain (a national framework) and local government frameworks (e.g. Durham County Council Domiciliary Care Services Framework) which once you are admitted onto as an ‘approved supplier’ will allow you to bid on ‘mini-competitions’ for work.
The work you have access to once you are on one of these Frameworks is entirely restricted; companies not on the Framework are not permitted to tender for it. Once you are on a Framework, you can generally expect to retain your ‘approved supplier’ standing for 4 years, or similar (this can vary between Frameworks).
Being on a Framework is fantastic for other reasons too; the estimated value of the whole Framework might be £10,000,000, but the tenders you are able to go for once approved may be of varied values. When applying for other tenders, being able to use a Framework as one of your contract examples could really strengthen other care tender responses, as it offers you the opportunity to showcase your involvement with larger contract values (even if the work you get from that Framework is nowhere near the £10,000,000 mark!).
For more information about framework agreements, visit Tender VLE.
-
Dynamic Purchasing System (DPS)
DPS’s are essentially the same as a Framework, in that they allow you the opportunity to become an ‘approved supplier’ to a Council, or other public body, and that being on the DPS will allow you the opportunity to bid for work not open to the wider tendering public. However, there are two key differences which make them a little more accessible than their Framework counterparts:
- Unlike a Framework, you can apply to be on a DPS at any time whilst it is running. So, if the DPS is running 2019 – 2023, you can apply to be accepted as a supplier on that DPS throughout that period. This also means you can leave a DPS at any time if you should wish.
- A DPS is run as an entirely electronic process, which Frameworks are not restricted to.
For more information about DPS’s, visit Tender VLE.
-
Second or Third Tier Provision
Queries we often receive from Care start-ups is about how to get into tendering without sufficient contract examples to provide as evidence. It’s an excellent question, as so much of writing bids for care tenders revolves around providing evidence that you have done the things you say you will do. If you don’t yet have that evidence, then getting it should definitely be your top priority. This, thankfully, is where second and third-tier opportunities come into play.
Councils often recognise that domiciliary needs can fluctuate wildly, or grow exponentially, so it is always worth contacting your local Council to ask if they have any second or third-tier opportunities available. These are aimed at smaller, less experienced companies who may not have the turnover or experience to tender to be the main provider on a care tender.
Second or third tier opportunities generally involve providing floating support within an established region (usually home visits) which will be in response to the instruction of the main care provider (first tier provider). Tendering for second or third tier opportunities requires much less in the way of evidencing previous experience, making them ideal for care companies looking to get established in the procurement process.
-
Sub-contracting
Sometimes when established companies tender for multiple bids, they may win more work than they had anticipated, and are unable to facilitate it. In this instance they have a choice; rescind one or more of their bids or find a way to meet the whole need. In this instance, they may look to sub-contract some of the service delivery to smaller companies. Getting work through sub-contracting is another excellent way for young companies to gain the experience they require to start tendering for contracts of their own.
Tackling Care Tenders
So, now you should have a good idea of how to get a foot on the ladder! Still, there is the question of writing care tenders themselves to consider. Although every tender is different, it doesn’t hurt to remember that the Quality section for care tenders is nearly always given greater significance in the evaluation of tenders than the Price section is.
Here at Hudson, we have written care tenders for everyone from start-ups bidding for their first second-tier opportunity, to large companies applying to multi-million Frameworks. Here are three important things we think every care company should bear in mind when writing their bids:
-
Multi-Agency Approach
If there is one thing that your local authority (whether that be the Council, NHS or other) is going to be excited to see, it is evidence that you have given thought to how you will integrate your service with other agencies. Care provision intersects with so many other professions (Social Workers, Doctors, SEN professionals, Therapists etc.) that showing the Buyer you have thought about how you will integrate with these other services for the good of the service users will be a strong point in your favour.
-
Social Value
Social Value is important across all industries, but we have found that when writing care tenders, it is especially important. In all likelihood, you will be working closely with the wider communities you are operating within. We highly recommend doing your best to show the Buyer that you will bring value to these communities, whether that is by local employment, charity work or positive engagement with minority demographics. Be realistic about what you can offer and, perhaps most importantly, try to show that you really believe in it. A strong social value response can be the difference between a strong care tender and a weak one.
-
Own Responsibility for Risk Management
Showing Buyers that you are prepared to own the responsibility for identifying and mitigating risks is hugely important. Even if you are a start-up applying for second-tier opportunities, demonstrating a strong approach to risk management will put your tender in the spotlight when Buyers are evaluating responses. Remember, it is not enough to identify risk, you have to show that you understand how to minimise it and mitigate any possible consequences. This will prove to Buyers that you are a responsible company and inspire their confidence in your ability to provide a safe, quality service.
Further Information
We also have a dedicated tender tracking portal for the Healthcare Sector. Visit Healthcare Tenders to view all the latest contract opportunities.
For more information on how to tackle care tenders, contact our team of tender writing consultants, who will be all too happy to talk you through the care tendering process in greater detail.
Find more helpful tips and advice in our blogs. We cover topics including: