The Department for Education is exploring a new value-added reseller model for software purchased by schools, academy trusts and the Department itself. The proposed framework has an estimated value of £300 million excluding VAT and could run for up to five years.
This is an early market engagement exercise rather than a live tender. The DfE is still developing the scope and wants supplier feedback before deciding how the framework should be structured.
Why the DfE is considering a VAR model
The proposal sits within the Maximising Value for Pupils programme, which aims to help schools and trusts use their resources more effectively. The market engagement notice highlights several challenges in software procurement, including opaque costs, complex licensing arrangements and inconsistent value.
A VAR model could aggregate demand, improve pricing transparency and reduce the administrative burden on individual schools. The DfE has also considered a VAR approach for its own software requirements, creating the possibility of a unified commercial route for departmental and education-sector purchasing.
What the future framework could include
The current notice refers to software support, industry-specific software and educational software packages. The final scope may extend beyond licence resale to include account management, renewals, licence optimisation, usage reporting, technical support and advice on product selection.
No lot structure or supplier model has yet been confirmed. The market engagement process should therefore be used to test questions such as:
- whether one supplier can credibly cover the full software market;
- how specialist and SME resellers can participate;
- how pricing and discounts should be made transparent;
- how licence usage and renewals will be managed; and
- what service levels schools and trusts will need.
The DfE is also exploring other routes to improve technology value for schools. Our guide to DfE Technology Deals for Schools provides useful context for software and hardware suppliers.
Who should engage?
The opportunity is relevant to software resellers, licence-management providers and technology suppliers with experience of education or large, decentralised customer bases. It may also interest specialists that can support a particular software category, although the final structure will determine whether these suppliers can bid directly or need to work through a wider delivery partner.
SMEs and VCSEs are specifically identified as suitable participants. However, suppliers should consider whether they can provide consistent support across a large and varied group of schools, not simply offer competitive licence prices.
Quick facts
- Contracting authority: Department for Education
- Estimated value: £300 million excluding VAT, £360 million including VAT
- Expected term: Three years, with a possible extension to five years
- Engagement deadline: 31 July 2026
- Expected tender notice: 1 December 2026
- Suitability: SMEs and VCSEs are identified in the notice
How suppliers can prepare
During engagement, suppliers should provide practical evidence about pricing, licence administration, school support and demand aggregation. Feedback will be more useful where it explains how the proposed model would operate, what information the buyer would need and where commercial or technical risks could arise.
Before the formal tender, review your manufacturer relationships, authorisations, licence-management systems, service desk capacity, education-sector references and approach to handling large numbers of customer accounts. If delivery depends on subcontractors or specialist partners, clarify how those relationships will be governed.
The future bid is also likely to require more than a catalogue of software products. Suppliers should be ready to show how they will help customers understand usage, manage renewals, reduce unnecessary spend and receive consistent support.
Thornton & Lowe supports software and technology suppliers with market engagement, framework strategy and tender responses.
