Navigating the complex landscape of ECEC tenders

The early childhood education and care (ECEC) sector, while essential to the community, is  highly competitive. Securing government contracts in any of the states across Australia, or private sector partnerships, generally involves submitting a formal tender or bid. 

For ECEC businesses, winning tenders can be a significant boost, providing a stable revenue stream and the opportunity to expand services. This also extends to Outside School Hours Care (OSHC) tenders, which many approved providers also bid for in order to grow their businesses. 

However, the tender process can be daunting, fraught with challenges that can derail even the most well-intentioned bids.   

In the piece below Jason Cooney, Director of The Tender Team, a bid and tender writing consultancy service, shares both his perspective on the common challenges of this space, as well as potential solutions.

Common Challenges 

1. Intense competition: The ECEC sector is experiencing rapid growth, leading to increased competition for government contracts and private sector partnerships. This heightened competition makes it essential for providers to differentiate their business and submit a compelling bid. 

“It’s not enough to simply comply with the requirements,” Mr Cooney said. 

“You need to add value in different ways and provide a unique service offering.” 

1. Complex tender documents: Tender documents can be lengthy and complex, often requiring a deep understanding of government policies, regulations, and financial reporting standards. Failing to meet specific requirements or submitting incomplete documentation can lead to disqualification. 

2. Rigorous evaluation criteria: Government and private sector organisations often use rigorous evaluation criteria to assess tenders. These criteria may include financial viability, quality of service delivery, experience, and compliance with regulations. Meeting these standards requires careful planning and execution. 

The government sector (such as leasing and operating a long day care service for the local Council) has more complexities and regulatory challenges than the private sector which generally only involves a leasehold and the regulatory approval process. 

1. Limited resources: Many ECEC businesses, especially small and medium-sized enterprises, may have limited resources to dedicate to the tender process. This can impact their ability to allocate sufficient time and staff to research, write, and submit high-quality bids. Tenders and bids take time – and busy operators often underestimate the time taken to write and submit a quality bid response. 

2. Sector leading initiatives: Many businesses find it challenging keeping up with  developments in the ECEC sector. From adherence to nutritional rules, and potentially employing catering and other solutions in long day care centres, to implementing innovative and cutting-edge educational strategies, approved providers typically  need to be ‘cutting edge’ in order to stand out from the crowd and submit and win a tender response. 

Strategies to overcome tender challenges and secure more opportunities 

1. Understand the tender landscape and localise your bid: Thoroughly research the tendering landscape, including government policies, funding priorities, and the specific requirements of the tender. Stay updated on sector trends and regulatory changes to ensure your bid aligns with current expectations. When you submit your bid, conduct research into the reasons for the release of the RFP. 

For example, is it a new service which is under construction by a local Council to cater for the local Community? If so, why is it being constructed? It may be to service the community due to an increase in demand, primarily due to increased migration. If this is the case, you may need to have a focus on your language and translation capabilities as well as programs for integrating migrant families into the community. 

Alternatively, you may be tendering for the operation of a service that is currently operating, the five-year term is up, and there may have been negative or positive feedback in the community on the current operator. Either way, understanding the context, who the potential competition is, and what the trends and the main drivers release of the tender are critical.

You also need to localise your bid and talk about the local area in which the service will operate. If you already have a local presence – talk about this and demonstrate that you can show insight into the challenges of operating in the local area and the respective demographics. Where your personnel and proposed team members are based locally, this is also an advantage as is your businesses connection with the local community. 

1. Develop a strong tender response team: Assemble a dedicated team with expertise in various areas, such as finance, operations, and education. A well-coordinated team can efficiently manage the tender process, ensuring that all aspects of the bid are comprehensively addressed. 

When you start the tender writing process, do not try to complete the tender from start to finish. Instead, break it off into bit-sized chunks, and distribute the questions through your team (and any external stakeholders) to complete. 

For example, most tenders and bids at Federal, State and Local government level across Australia ask for financials – which will generally need to be provided by your accountant. 

1. Tailor your response to the specific requirements: Read the tender document carefully and tailor your response to the specific requirements. Avoid generic responses and focus on highlighting your unique strengths and how they align with the client’s needs. The tender may ask for copies of your teaching programs and CVs of your supervisory and other staff including qualifications. CVs need to be tailored to the bid. 

For example, if your proposed team has strong experience running programs for children from different cultures, you need to talk about this if it is relevant to your proposed bid. Alternatively, if they have experience in other areas of ECEC service provision, such as working with children with a disability, and this is relevant to the tender response, you need to tailor their CVs so they incorporate this strength.

1. Prioritise quality over quantity: While it’s important to address all aspects of the tender, prioritise quality over quantity. A concise, well-written, and well-structured bid is more likely to impress the evaluation panel. Include evidence for all the claims you make throughout your bid to give it credibility and strength. 

2. Achieve through leadership: Whether it is new technology being used to report to parents and ensure compliance, or a contract with a catering supplier specialising in nutritional food, in order to secure a contract you will need to show that you are a thought leader. That is, incorporate new, innovative services that are emerging in the ECEC sector and clearly communicate their benefits. 

By understanding the challenges and implementing effective strategies, approved providers can increase their chances of success in the competitive tendering landscape. A well-prepared and well-executed bid can open doors to new opportunities and contribute to the growth and sustainability of your business.