ACE Advice Limited

Framework Or Fees: How To Determine The Best Value For Your School

Purchasing decisions can be difficult, especially when you’re buying a service where no two suppliers are the same, like catering or cleaning. But do government-approved frameworks really make it easier?

Frameworks allow a pre-selected group of organisations to bid for a contract, enabling them to complete a compliant procurement process in a low-impact way. They’re usually owned by public sector organisations, and are promoted as ‘free’ to the buyers. When procuring using the MEAT principles, it’s a compelling starting point. But frameworks generate their funding through fees levied from organisations that are awarded contracts which originate from their framework.

These fees, usually calculated as a percentage of the agreement’s annual turnover, are recovered from the initial customer over the life of the contract. As all bidders include the same percentage levy in their submissions, every price submitted rises on the tide of the bidder’s levy. In other words, there’s no such thing as a free framework.

To help you gain a better understanding, and decide which approach is right for you, we’ve outlined the key things to consider when procuring a high-value service.

How big is the contract?

If your tender’s lifetime value is relatively small, a framework service is more cost effective than engaging a specialist consultant to manage the process.

For example, if a primary school takes out a small cleaning contract with an annual turnover of £50,000, a 0.75% framework charge over a five-year agreement is around £1,875 – much less than consultancy fees. However, a cleaning contract for a MAT, with an annual turnover of £1,000,000 over five years, increases the cost by £37,500 – making the likely consultancy fees, by comparison, excellent value for money.

Would you require a personalised service?

When purchasing a framework service, the contractual documentation and schedules are based upon a template, and rarely personalised. As a result, the completed agreement is a fixed solution which isn’t tailored to your schools’ needs.

It is possible to retrofit your requirements into the contract, but the price is likely to change. What’s more, tailoring the documentation is a demanding task, and although you can engage an expert consultant’s help, this means another set of fees.

Do you have the time and resources?

Your school business manager has many responsibilities. Procuring complex services like catering or cleaning, and personalising the contract if required, can really eat into their time and resources.

With a framework approach, their input will be needed throughout the duration of the contract, whereas a consultancy can really take the weight off their shoulders.

Do you have a supplier in mind?

Frameworks select their suppliers by regional or national coverage. These suppliers qualify for the framework every five years or so, and there’s a limit on the number in each region. Usually, only the larger suppliers are considered, which means any new entrants into the market, or smaller providers that may be a better cultural fit for your school, are excluded.

By publicly advertising opportunities, you can engage the entire market, and may reach a better range of suppliers than a prequalified selection made by a ‘boilerplate’ tender process.

Need support? ACE Advice can help

If your school is buying at scale, engaging a specialist consultancy can prove invaluable. At ACE Advice, we work with you to navigate the complexities of public sector procurement, while tailoring the service to meet your schools’ needs.

To find out more about how we can support you, visit our website, or speak to our friendly team on 07833 265675.

Self-Managed Vs Outsourced Catering: Which Is Right For Your School?

There are moments in any organisation’s life when additional resources, such as catering, are needed to successfully manage growth or performance. These resources underpin your organisational stability. But first, you must decide who’s going to deliver them: extra personnel, or a third party.

The scale of your organisation, and its plans for growth, should be key considerations when selecting a catering service. As should the strength of your existing internal infrastructure, and its ability to manage a contractor, or a directly employed team.

Both options come with advantages and disadvantages. Below, we’ve outlined each in detail, helping you to make a weighted decision on the best route forward for your organisation.

Self-managed

Self-managed catering is undoubtedly the most popular choice for schools and academies. Up to 70% of the sector is either managed by a Local Authority Caterer under a Service Level Agreement, or directly managed by individual schools or trusts.

A catering service’s success can only be viewed on a case-by-case basis, and by understanding any organisational pressures. Whilst self-managed services may be more aligned to the school’s or trust’s vision, the team’s capability is vital to delivering that vision. To determine this, the catering manager will need a line manager – usually the school business manager – whose workload and expertise should also be considered.

As a MAT grows, standards and branding become increasingly important, bringing the need for uniformity across the schools. This is also true for the catering services within the trust, which in turn brings additional management inputs.

At ACE Advice, we offer a full suite of support materials that can assist the self-managed team in areas outside the local management’s skill set, ensuring a safe, compliant catering service. Our specialists can guide the procurement decisions taken in the kitchen, such as monitoring ingredient prices, provenance and supply chain, and agreeing contract costs for menu ingredients, to boost your team’s productivity.

Outsourced

The remaining 30% of UK schools outsource their catering provision, usually in a bid to remove the hassle and release the organisation from this high-intensity responsibility.

Appointing a contractor has benefits, but it does mean the loss of direct control over the service. What’s more, it isn’t a straightforward procedure, and ultimately, a contract caterer’s efficiency and effectiveness rests with the school business manager. If they’re continuously challenged and placed under pressure, they can achieve considerable improvements. If they’re left alone, they may underperform to the school’s expectations.

To extract full value from the chosen supplier, schools often need management support from independent professionals, who have a deeper understanding of contractor behaviour and their commercial drivers.

That’s where ACE Advice comes in. With our valuable expertise, we can ensure you remain compliant throughout the procurement process and assist with monitoring and overseeing the entire contract.

Catering support from ACE Advice

Finding the best solution for your organisation isn’t easy – it requires careful and strategic thinking and analysis. In the end, it may come down to a trade-off between financial demands, day-to-day control, and the workload of your leadership team.

If you need help deciding which option is right for your organisation, our team of expert consultants is here to support you. At ACE Advice, we work with schools and trusts to determine the risks and rewards of a directly managed, or an outsourced catering service.

Reach out to us today on 07833 265675, or visit our website to find out more.