A Coup for HP Financial Services:

 

In April a major public sector framework agreement for operating leasing was awarded to HP Financial Services (HPFS). The scope covers all UK Local Authorities schools (Community schools) and many Foundation, Academy and Independent schools.

EU procurement rules are complex. To handle them in a correct and compliant way requires time and experience that schools are seldom resourced to match. Many Local Authorities also see the cost savings in utilising contracts that have been pre procured. While this award does not preclude other participants from the education market it does offer HPFS the easiest to use and compliant procurement methodology.

While this type of exclusivity brings significant advantage to HP Financial Services a single provider framework agreement is unlikely to be the best option nationwide. Other Local Authorities may well address this by procuring similar arrangements and the driver for this must be HPFS’s competitors.

Hopefully the process will show to the education sector that operating leases do offer value for money and the best way of achieving this is through regular fair, open and transparent tendering.

To fully exploit the market operating lease financiers are going to have to understand the public sector procurement environment a subject that HPSF seem well versed in.