ESFA Non-Levy Procurement Results

Results of this recent tender exercise were published by the ESFA the week ending the 8th December. We understand that there may be a delay in the ESFA issuing contracts due to several organisations challenging their results.

Funding cut by a third

It is clear that the procurement exercise was over-subscribed at a national level. LCR based providers faced fierce competition, with most organisations having funding requests cut by a third or more it would seem.

Minimum contract value

We are aware that a small number of members have been unsuccessful in receiving a non-Levy funding allocation. Some of these submitted high quality proposals that met and exceeded the scoring criteria. However they have not been awarded an allocation because, following a pro rate reduction by the ESFA, their tender value fell below the £200,000 minimum contract value.

GMLPF survey results

GMLPF surveyed members on the outcomes of the procurement exercise. Despite submitting successful tenders, most members have received allocations significantly below what they anticipated. A number of key messages emerge from our survey, these are:

  • 75% of members who were successful in the tendering exercise believe that the reduced funding allocation will have a negative impact on their organisation
  • 56% indicated that there will be reduced Starts in contrast to only 13% suggesting that they will be able to increase Starts.
  • 44% indicated that there would be reduced provision ie they will cease to deliver certain learning programmes

GMLPF has been working with the LCR Employment and Skills team to raise awareness of the potential consequences of this procurement with the Metropolitan Mayor. There is a concern that the reduced allocations may impact negatively upon the capacity and capability of the local supplier base and their ability to address emerging skills issues.

GMLPF would also like to broker relationships between members who were unsuccessful or have reduced allocation, and those who might now be looking for potential delivery partners. If anybody is looking for delivery partners based in the Liverpool City Region then please contact Ian Lomas at GMLPF on ian@gmlpf.net or 0151 707 8775

Check back to the GMLPF website for further updates