Guidance and updates for Buyers in the Education Sector:
Valuation of Contracts
When evaluating contracts in the education sector, including multi academy trusts, it is crucial to be able to determine their value accurately. Failure to do so may trigger compliance with the Public Contracts Regulations (PCR). To avoid this, buyers should consider the following steps:
- Conduct Thorough Market Research - research the market thoroughly to understand the prevailing prices and rates for similar contracts. This will help in determining a reasonable value for the contract.
- Seek Expert Advice - if unsure about the valuation of a contract, speak to us ensure accurate determination of its value.
- Document the Valuation Process - maintain clear documentation of the valuation process, including the data sources, methodologies, and reasoning used to arrive at the contract's value. This documentation will be essential in demonstrating compliance with the PCR.
Termination of Contracts
The new requirement added to the PCR emphasises that contracts cannot be terminated in a way that circumvents the procurement rules under PCR, Parts 2 and 3. To adhere to this provision, buyers in the education sector should consider the following advice:
- Ensure Transparent Decision-making - when considering contract termination, adhere to the principles of non-discrimination, equal treatment, and transparency. Ensure that the decision-making process is well-documented and justifiable.
- Comply with Procurement Rules - incorporate compliance with procurement rules as a specific requirement when evaluating contract termination. Ensure that any decisions made align with the principles and requirements set forth in PCR, Parts 2 and 3.
- Record Keeping and Documentation - maintain comprehensive records of all decisions related to contract termination. These records should reflect the consideration of compliance with procurement rules and serve as evidence of good governance and adherence to legal requirements.
Effective contract management will gain increasing scrutiny via the Procurement Reform. We have seen this time and time again. An excellent procurement process compliantly sources the best supplier. Lack of resources, expertise and systems post-contract award almost ensure the contract does not perform. Supplier and contract management is on the agenda for change and an area we agree needs a lot of focus and attention.
By following these comprehensive guidelines, buyers in the education sector, can navigate the complexities of contract valuation and termination while embracing some of increasing flexibility that the reforms are aiming to achieve. This will help in fostering trust, efficiency, and innovation in procurement processes, ultimately benefiting you and the end user, the students.
To discuss how you can prepare for the procurement reforms, or if you need support with a project, contact us now.
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