Academy Trust Procurement

Academy trusts are charitable companies established under the Academies Act 2010 to operate state-funded schools in England, including academies and free schools, independently of local authority control. They receive their funding directly from the Department for Education (DfE) through an Education and Skills Funding Agency (ESFA) grant. This direct public funding relationship means that academy trusts are contracting authorities for the purposes of the Procurement Act 2023, and above-threshold contracts must comply with public procurement rules.

What is Academy Trust Procurement?

An academy trust is a charitable company limited by guarantee. It may operate a single school (a single-academy trust, or SAT) or a network of schools across multiple sites (a multi-academy trust, or MAT). The largest MATs, such as United Learning, Ark Schools, and Outwood Grange Academies Trust, operate dozens of schools and have combined procurement budgets running into tens of millions of pounds per year. They purchase catering, cleaning, grounds maintenance, IT infrastructure, software and management information systems, construction and capital works, energy, professional services, and a wide range of consumables.

Under the Procurement Act 2023, academy trusts that receive public funding are contracting authorities. The DfE's Academies Financial Handbook (which sets governance and financial management requirements) requires trusts to follow sound commercial practices and, for above-threshold contracts, to comply with public procurement law. The DfE also issues guidance on the use of approved frameworks and expects trusts to demonstrate value for money in their procurement decisions.

Many academy trusts use Crown Commercial Service frameworks, sector-specific consortia such as the Education Procurement Service (formerly the Yorkshire Purchasing Organisation's education arm), and regional or MAT-specific collaborative arrangements. Larger MATs increasingly centralise procurement across their schools, creating category management teams and negotiating group-wide contracts.

Why it matters for bidders

The academy trust market is large and growing. There are over 2,500 multi-academy trusts in England, and the majority of state secondary schools are now academies. The market is fragmented at the smaller end (single-academy trusts with limited procurement sophistication) and increasingly concentrated at the larger end (major MATs with structured commercial functions).

Suppliers targeting this market benefit from understanding the DfE's framework guidance. The DfE publishes a list of recommended procurement frameworks for schools, and trusts that use listed frameworks are less exposed to challenge or audit risk. Suppliers who qualify for these frameworks gain a significant distribution advantage.

Budget constraints are significant: per-pupil funding levels and the allocation of budgets between teaching and non-teaching costs are under continuous scrutiny from DfE and trust boards. Suppliers who can demonstrate a clear contribution to educational outcomes or cost efficiency, alongside their core product or service, tend to perform better in evaluation.

University procurement in the education sector operates under different rules and with greater financial autonomy, though both markets share categories in IT, estates, and professional services.

Example

A catering company targets multi-academy trusts in the Midlands. It qualifies onto the Crown Commercial Service catering services framework and approaches the three largest MATs in the region. Two MATs are approaching the end of existing contracts and are willing to run a framework call-off competition. The catering company presents its social value credentials (local food sourcing, nutritional standards, pupil meal satisfaction scores) alongside its price, and wins one competition outright and a split-site arrangement with another.

Frequently Asked Questions

Are all academies subject to the Procurement Act 2023?

Academy trusts that receive public funding (which covers the vast majority) are contracting authorities subject to the Act for above-threshold contracts. Local authority-maintained schools are not academies and are covered by their local authority's procurement framework rather than running their own competitions. Free schools follow the same rules as academies since they are also operated by academy trusts.

What is the Academies Financial Handbook and why does it matter for suppliers?

The Academies Financial Handbook is the DfE's governance framework for academy trusts. It requires trusts to achieve value for money in their procurement, sets expectations for competitive tendering, and references the use of approved frameworks. Suppliers who understand the Handbook's requirements can align their proposals to the language and evidence that trust finance directors and auditors look for.

Do MATs procure centrally or per school?

Practice varies. Larger, well-established MATs typically centralise procurement for high-value categories (catering, IT, energy, professional services) while allowing schools autonomy for lower-value day-to-day purchasing. Smaller MATs or those that have grown quickly through conversion may still procure largely at school level. Understanding the trust's governance structure is important before investing in a sales approach.