Adult Education Budget 2023/24 Procurement Contracts for Services

Existing ESFA-Funded AEB contracts for services came to an end on 31 July 2023 and therefore the Department for Education (the "Authority") was required to undertake a further procurement exercise to secure this provision.

The Authority, on behalf of the ESFA, conducted a competitive procurement exercise (carried out in accordance with the Light Touch Regime, applying the principles of the Open Procedure as set out in the Public Contract Regulations 2015) for new ESFA-funded AEB contracts for services. These contracts will commence on 1 August 2023 for an initial period of twelve months covering the 2023/24 academic year, with options to extend further by up to three 12-month periods (extension will depend on factors including individual supplier performance and government spending priorities).

Providers needed to meet the criteria and quality standards that were set out in the procurement documents.

The contracts awarded through this procurement exercise are for qualifications-based provision and/or their components described in the AEB funding rules and/or the Free Courses For Jobs ("FCFJ") offer.

Multiple providers were sought to deliver the service across the non-devolved regions of England only. This means individual suppliers were limited to a maximum contract value, referred to as a 'tender cap' according to factors including their experience of providing similar services and the size of the bidding organisation. Note however that the Authority did not guarantee that providers who were successfully appointed would necessarily receive funding in an amount equivalent to their applicable tender cap.

Separately to this, an overall maximum contract value of £2.5 million per year applied to each Provider (albeit subject to availability of funding/provider performance, the Authority may award funding beyond the afore-mentioned 'caps' to providers if/when further funding becomes available and therefore annual contract values may increase in due course).

Following award, contract values may be increased or decreased according to factors including performance by the contractor and government funding priorities as further explained in the procurement documents.

Given the duration of the contract, the Authority may (at its absolute discretion) agree to variations in respect of the subject-matter of the courses delivered to the extent that such courses continue to fall within the auspices of adult education and the relevant funding rules as described above.

The procurement was open to providers who are seeking to deliver adult education and training provision funded by the ESFA AEB and FCFJ (and/or any other relevant public sector funding which may become available to deliver adult education programmes from time to time). Awarded Providers must deliver such provision in accordance with the current funding rules applicable to such funding (such that the provision is wholly fundable within the scope of those funding rules)