What is a consortium and how can they benefit SMEs when bidding for public sector contracts? – Supplier Specifics

What is a consortium?

CCS defines a consortium as 2 or more suppliers coming together to bid for a tender. There is no limit to the number of possible consortium members. Consortia bids are usually accepted across our commercial agreements.*

Why join and bid as a consortium?

Each year, billions of pounds of tendering opportunities are advertised across the public sector. However, many SMEs feel unable to respond to these, due to:  

• lack of experience
• inability to deliver only part of a solution
• limited resources

The cost of bidding for large contracts can be significant (e.g., bid writing, legal advice). By sharing these costs within a consortium, individual SMEs reduce their financial burden and risk. Similarly, equipment, facilities, and personnel can be shared during contract delivery. 

SMEs might form a consortium because individually they may not be able to meet all of the tender requirements but collectively they can.  

If you are looking to grow your business, but can’t tender for larger public sector contracts independently, joining or forming a consortium could be a solution. 

Increasing innovation and social value opportunities

A consortium can often propose more innovative and comprehensive solutions to the public sector’s needs, drawing on the diverse perspectives and capabilities of its members. Furthermore, many public sector contracts now prioritise social value. A consortium of local SMEs may be better positioned to demonstrate strong local job creation, community engagement, and environmental benefits, which can be a significant advantage in the bidding process.

What bidding arrangements do SMEs need to make?

Members will need to take their own legal advice on the structure of the consortium and where appropriate to ensure suitable arrangements are in place between consortium members. You should consider the specific roles, responsibilities, risk, resource allocation, cost allocation and overall bidding approach agreed upon.

When bidding for public sector contracts, CCS will require the tender to be submitted by either:

• a special purpose vehicle (SPV) –  a company (legal entity) set up by the members of a consortium for the purposes of fulfilling one or more specific contracts
• a lead member on behalf of the consortium

Except where the instructions in an Invitation to Tender (ITT) specifically state otherwise: 

• where an SPV legally exists, the consortium will designate the SPV as the lead bidder to complete the tender in its name and ‘voice’ 
• where multiple suppliers come together to form a consortium but have not formed an SPV, the consortium should nominate a lead member to complete the tender as the lead bidder. They shall be the representative for the other members of the consortium and shall be responsible for the preparation and submission of the tender in the consortium’s name and ‘voice’ 

Bidding on a CCS agreement

The SPV or lead member of a consortium must refer to the bid pack of each CCS procurement they are bidding for to understand their responsibilities, such as how and where details regarding each consortium member are to be captured and what documentation must be completed by whom.

Either the SPV or the lead bidder will:

• sign the framework award form and enter into the framework contract 
• sign and manage each call-off contract with buyers
• be contractually responsible for the delivery of the framework contract and each call-off contract
• register and complete all core information on the central digital platform for their organisation.

Only the SPV, lead bidder, their consortium members or any key subcontractors (including associated persons) can provide deliverables through the framework contract.

Each consortium member may be asked to complete documentation to support a Financial Viability Assessment. Each member will be assessed individually and should there be a need, guarantees may be required.

It is important that there are clear rules for decision-making, conflict resolution, and responsibilities among members.

Involvement in multiple bids

Bidders are allowed to bid as a single entity or as a consortium member. When bidding as a single entity or as a consortium member, they can also be named as a Key Subcontractor in another bid 

Suppliers can be part of more than one consortium as long as the consortiums are bidding for different lots.

Please refer to the bid pack of each CCS procurement for the rules on bidding.

If you are connected with another bid, we may make further enquiries so we can be sure that your involvement does not cause:

• conflicts of interest
• supplier capacity issues
• restrictions or distortions in fair and open competition

We may require you to amend or withdraw all or part of your bid if, in our reasonable opinion, any of the above issues have arisen or may arise.

Application of the Procurement Policy Notes 

The Procurement Specific Questionnaire (PSQ), which  fulfils a similar role to the Standard Selection Questionnaire used under PCR 2015, ensures Contracting Authorities receive the necessary supplier information regarding conditions of participation, exclusion and debarment information. The PSQ may require that the lead member of the consortium demonstrates that they are compliant with a number of Procurement Policy Notes (PPNs). PPNs are used to communicate new policies to be applied to public procurement activities and to support practical implementation.

Possible PPNs that may be applied include: 

• PPN 006: Taking account of Carbon Reduction Plans in the procurement of major government contracts
• PPN 007: Contracts with suppliers from Russia and Belarus
• PPN 009: Tackling Modern Slavery in Government Supply Chains
• PPN 010: Procuring Steel in Government Contracts
• PPN 014: Updates to the Cyber Essentials Scheme
• PPN 015: How to take account of a supplier’s approach to payment in the procurement of major contract

If you secure a place on an agreement, compliance checks against the above PPNs for the rest of the consortium members will  be carried out. 

Making changes after the tender submission deadline 

All tenders must be submitted with consortium arrangements in place at the time of the tender submission deadline. Details must be confirmed for all related parties, including subcontractors and consortium members. If this is not the case, CCS may consider your tender incomplete, and disregard your tender.

Please notify us of any proposed changes in relation to the membership of a consortium and use of subcontractors in the period between the tender submission deadline and award of contract. You must clearly set out the nature of and reason for the change. If you do not, we may have to disregard your tender.

If you require further information when bidding on a CCS procurement please follow the instructions for clarification questions in the published bid pack.

Supporting you on your journey as a consortium 

Securing a place on a CCS agreement is only the start of a consortium’s journey. When buying under a CCS agreement, all eligible suppliers will be invited to further competitions, and there you will have the opportunity to bid for further work. 

CCS will continue to work with you throughout the lifetime of the agreement to make sure all members’ certification and documentation is in order. 

Find Out More 

To learn more about how CCS is levelling the playing field for suppliers of all sizes, download our digital brochure.

We always welcome feedback, suggestions or queries. These can be submitted to smefeedback@crowncommercial.gov.uk

*Please note suppliers must refer to the bid pack for the procurement they are bidding for. The rules set out in the bid pack will take precedence over this guidance.