Under a consortium bidding model, the core principles and techniques of our bid writing services remain the same. The bid writer will read the specification, deconstruct the question and integrate your unique selling points into quality responses.

However, the model of the bid differs from a ‘single supplier’ submission. Even businesses with a high level of bidding activity may be left scratching their heads and asking, ‘what is a consortium in bidding?’

Read more below for an overview of consortium bidding, reasons why suppliers will submit a consortium bid and how the tender process differs under a consortium approach.

Consortium bidding for public sector tenders – an overview

Also known as ‘joint bidding’, consortium bidding involves two or more organisations joining forces to submit a tender. This differs from a contractor–subcontractor relationship in that a subcontractor is not seen as a ‘bidder’ during the tender process – no contract is signed between the buyer and subcontracting partner.

When bidding as a consortia, all members will be relied upon to deliver the works or services and will enter into a contract with the purchasing authority.

Currently, guidance for consortium bidding can be found in Regulation 19(4) of the Public Contracts Regulations 2015. However, this will change in October, when the Procurement Act 2023 comes into force, with relevant guidance found in Regulation 22(4).

The benefits of consortium bids

Even if you have had success bidding as a lone organisation, there are multiple reasons why you may choose to submit a bid as a consortium. However, they usually occur when individual companies cannot meet all of the requirements within the invitation to tender (ITT) document.

For instance, there may be a mandatory minimum turnover threshold your business cannot meet on its own – forming a consortium with other suppliers could satisfy this requirement. Some other reasons for consortium bidding may include:

• Access to a larger pool of resources and geographic coverage to deliver against the scope of works
• One of the organisations fulfils a mandatory condition to submit a compliant bid – for instance, a particular certification or accreditation
• Leveraging specific experience from member organisations across different contracts. This is particularly relevant if the contract is very high value or requires different services.

For these reasons, bidding as a consortium is usually reserved for large-scale contracts, including those requiring nationwide coverage. It can also allow small- and medium-sized businesses to access opportunities for which they may not have been able to qualify if they were bidding alone.

Structuring your consortium bid

Beyond a single-supplier or consortium bid, there are also different forms of a consortium bid. This usually depends on whether the consortium has been formed for a single contract or on an ongoing basis.

The most common methods of consortium bidding are:

• ‘Lead bidder’ model: Consortia members nominate a lead supplier as a contact to complete the bid on behalf of all members. Final responsibility for completing quality responses and submitting the bid will remain with that supplier.
• ‘Special purpose vehicle’ model: Also known as an SPV or joint venture company, members of the consortium will set up a separate company and submit the bid under that name. This is more typically employed for consortium bidding on a more frequent basis.

It is important to note that there are financial and legal commitments stemming from a consortium bid. The buyer will assess the overall financial health of the consortium, and if you are providing any guarantee arrangements to other members, you will be held liable over the contract term.

For this reason, consortium bidding is a considerably ‘high-trust’ activity. You should only enter into an agreement or partnership with organisations who have been properly vetted. A bidding agreement – separate from the authority – should be signed by all members to ensure any deals made are legally binding.

How consortium bidding differs from normal tenders

There are nuances for submitting a consortium bid, and differences in both procedural and more ‘strategic’ aspects of the tender.

Completing the SQ

If your tender is structured under the ‘lead bidder’ model, all members must complete Parts 1 and 2 of the Standard Selection Questionnaire (SQ). The lead bidder will then complete Part 3, which includes contract examples that demonstrate technical and professional ability. If consortium members will be assigned 25% of contractual obligations or are relied on to meet the selection criteria, they will also be required to complete an additional copy of the SQ.

If your consortium bid is under the ‘special purpose vehicle’ model, then the SQ will be completed in the name of the joint venture or company formed for the basis of that (or multiple) bids.

Responding to quality questions

The quality element of the submission is where you can really sell the benefits of a consortium bid. Within quality responses, the consortium’s strength of resource, geographic reach and collective experience can all be leveraged as a unique selling point or ‘win’ theme. This will enable your submission to stand out from other bidders.

The bid should have a single tone, approach and ‘look and feel’ throughout. The buyer will expect you to deliver works and services as a single organisation, and this should be reflected within the submission.

Managing risk

One of the reasons consortium bidding is attractive is its function in risk management. Sharing the risk associated with a project with other consortium members can protect against potential losses, while also ensuring your business can reap the benefits of a new contract.

This can be reflected in any quality responses around managing risks and introducing mitigation measures. One of a consortium’s strengths is increased staffing and resourcing capacity, and your tender submission should reflect this. Wider supply chain agreements with suppliers and subcontracting partners can also be referenced where appropriate, differentiating your tender from a ‘single supplier’ submission.

The Cabinet Office has published official guidance on consortium bidding for government contracts. You can check and review this prior to your ‘bid/no-bid’ decision to ensure compliance and that consortium bidding is the right choice for the tender opportunity.

Bid writing support with your consortium bid

Since our inception in 2009, Executive Compass have supported clients with consortium bids across all different sectors. This includes construction, health and social care, and facilities management tenders.

In addition to writing the quality responses, our wider bid management support also includes managing the portal and completing standard company information with the SQ. This reduces the additional administrative burden when completing a consortium bid, while also giving peace of mind that you are submitting a compliant tender.

If you would like to discuss bid and tender support for any upcoming or live consortium bids, one of our sales and marketing team are available for a chat at info@executivecompass.co.uk or 0800 612 5563.