Pre-Tender Cost Modelling
Valuing Care’s Pre-Tender Cost Modelling Service supports local authorities and Integrated Care Boards to establish financially sustainable pricing ahead of commissioning or procurement exercises.
Set sustainable pricing before going to market
By modelling the realistic cost of delivering care before a tender is released, we help commissioners avoid underpricing that risks provider failure, as well as overpricing that places unnecessary pressure on already constrained budgets.
Our evidence-based approach ensures that procurement begins with a clear financial framework — improving bidder confidence, strengthening governance and supporting long-term market stability.
Procurement exercises often fail to achieve their intended outcomes when pricing assumptions are not aligned with the true cost of delivery.
Commissioners frequently encounter:
· Limited insight into provider cost structures prior to tender
· Risk of low bidder engagement where rates are perceived as unviable
· Over-reliance on historic pricing benchmarks
· Budget uncertainty during procurement planning
· Contract instability caused by financially unsustainable awards
Without robust financial modelling, authorities risk re-tendering services, renegotiating contracts prematurely, or managing provider exits.
Our Approach
Valuing Care provides a structured modelling framework that establishes credible pricing before the procurement process begins.
Cost-Based Pricing Models
We construct detailed cost models tailored to the service being commissioned, drawing on:
· National and regional cost datasets
· Property and overhead cost factors
· Regulatory requirements
· Local market conditions
This produces a realistic view of the price required to sustain quality provision.
Scenario Testing & Financial Sensitivity
To support informed decision-making, we model multiple pricing scenarios, enabling commissioners to understand how changes in assumptions may influence affordability, provider participation and market sustainability.
This allows authorities to approach procurement with greater financial certainty and reduced risk.
Governance-Ready Outputs
Valuing Care delivers clear, defensible documentation that supports internal approvals and procurement governance, including:
· Recommended pricing ranges
· Key cost drivers
· Risk considerations
· Financial assumptions
These outputs provide a strong audit trail and help demonstrate that pricing decisions are grounded in robust analysis.
Key Benefits
· Establishes credible and sustainable tender pricing
· Improves provider confidence and bidder engagement
· Reduces the risk of failed or delayed procurements
· Supports long-term contract stability
· Enables proactive, strategic commissioning
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Valuing Care’s Pre-Tender Cost Modelling Service equips commissioners with the financial clarity needed to enter the market confidently — setting the right price from the outset to support both affordability and sustainable care provision.