How to Win Your First Local Authority Care Contract

How to Win Your First

Local Authority Care Contract.

You have registered with the CQC. Your company is legally formed. Your documentation is in place. Now the question that determines whether this becomes a business or an expensive filing cabinet: where do the clients come from? For domiciliary care companies, the answer — at least initially — is almost always the local authority. Councils commission approximately 60–70% of all domiciliary care hours in England through formal procurement frameworks. Getting onto those frameworks is the single most important commercial step a new care company takes. This article explains exactly how local authority commissioning works, what you need to get onto a framework, and what the process looks like from application to first referral.

Disclaimer: This article is editorial guidance published by OctusJournal. It does not constitute legal, financial, or procurement advice. Commissioning processes vary between local authorities. Readers should contact their local authority’s commissioning team directly for current procurement opportunities and requirements.

How Local Authority Care Commissioning Works

Under the Care Act 2014, local authorities in England have a statutory duty to meet the care and support needs of adults who are assessed as eligible. When a person is assessed as needing domiciliary care (help with personal care, medication, meals, or mobility in their own home), the local authority must arrange that care.

Local authorities do not deliver most domiciliary care themselves. Instead, they commission it — meaning they contract independent care companies to deliver care packages on their behalf. The council pays the care provider a contracted hourly rate, and the care provider delivers the service to the person in their home.

The commissioning process works through three main procurement mechanisms:

Framework Agreements

A framework agreement is a pre-approved list of care providers that the council can call upon when a care package needs to be arranged. To get onto the framework, you submit a formal application during an open procurement window. The council evaluates your application against quality, compliance, and capacity criteria. If you pass, you are added to the approved provider list. When a new care package arises, the council contacts providers on the framework — either by rotation, by geographic proximity, by lowest cost, or through a brokerage system that allocates packages based on availability and capacity.

Dynamic Purchasing Systems (DPS)

A DPS is similar to a framework but more flexible. Unlike a traditional framework, which closes after the procurement window and only reopens periodically, a DPS allows new providers to apply to join at any time during the contract period. Many councils are moving to DPS models specifically because they allow new entrants to join the market without waiting for a framework to reopen. This is good news for new care companies. If your local authority operates a DPS for domiciliary care, you can apply to join as soon as you have your CQC registration.

Spot Purchasing

When a care package cannot be filled by providers on the framework or DPS, the council may spot-purchase directly from any CQC-registered provider. This is more common in rural areas, for complex care needs, for urgent hospital discharge packages, or during periods of high demand. Spot purchasing does not require being on a framework — but it is less predictable and typically offered at lower rates.

What You Need Before You Can Apply

Before you apply to join a local authority framework or DPS, you must have the following in place. These are not optional — they are minimum requirements that every council will check:

Requirement

Why It Matters

Notes

CQC registration

Legal requirement to provide regulated care

Your registration certificate must be current and active

Public liability insurance

Councils require proof of insurance

Minimum £5m cover typical; £10m for some councils

Employer’s liability insurance

Legal requirement if you employ staff

Minimum £10m statutory requirement

Professional indemnity insurance

Covers errors in care delivery

Required by most frameworks

Safeguarding policies

Core CQC requirement

Must include adults and children safeguarding

Recruitment & DBS policy

Proves safe recruitment practices

Enhanced DBS with barred list for all care staff

Complaints procedure

CQC and council requirement

Must demonstrate fair, accessible complaints process

Quality assurance framework

Demonstrates governance maturity

Internal audits, spot checks, feedback systems

Business continuity plan

Shows resilience planning

How you will maintain service during disruption

Data protection policy / ICO

GDPR compliance

ICO registration required once processing personal data

Financial accounts or forecast

Proves financial viability

New companies can submit forecasts; established companies submit accounts

Training plan

Demonstrates workforce competence

Induction, mandatory training, specialist skills

If you acquired a pre-built company with comprehensive documentation, most of these items are already in your possession. You will need to personalise them (company name, addresses, named staff) but the substantive content — the policies, procedures, and frameworks — are ready to submit.

Where to Find Opportunities

Local authority care contracts are published on specific platforms. You need to monitor all of them:

Contracts Finder (contractsfinder.service.gov.uk)

The primary UK government platform for public sector contracts. All central and local government contracts above £10,000 in value must be published here. Set up alerts for your geographic area and service type (domiciliary care, home care, personal care). Check it weekly.

Find a Tender (find-tender.service.gov.uk)

For higher-value contracts. Replaced the EU’s OJEU (Official Journal of the European Union) after Brexit. Larger framework agreements and DPS contracts are published here.

Council Procurement Portals

Many councils use dedicated e-procurement platforms such as ProContract, Delta eSourcing, In-Tend, or The Chest. These are where the actual tender documents are hosted. You typically need to register on the portal to access tender packs and submit responses. Contact your local authority’s commissioning team to find out which portal they use.

Care England Tender Opportunities

Care England (careengland.org.uk) maintains a regularly updated list of live tender and contract opportunities for adult social care across England. This is a useful aggregator that saves you checking multiple platforms individually.

Direct Contact

Do not underestimate the value of a phone call. Contact your local authority’s adult social care commissioning team directly. Introduce yourself. Explain that you are a newly CQC-registered domiciliary care provider and ask how to join their approved provider list. In many cases, particularly with DPS models, the commissioning team will explain the process and may point you to an open application window that has not yet been widely advertised.

The Application Process: What to Expect

Every council’s procurement process is different in detail, but the general structure is consistent:

Stage 1: Expression of Interest (EOI)

You register on the council’s procurement portal and download the tender pack. This includes the specification (what the council wants you to deliver), the evaluation criteria (how they will score your application), and the submission templates (the forms you must complete). Read every document carefully. The specification tells you exactly what to include in your response.

Stage 2: Suitability Questionnaire

This is the pass/fail stage. The council verifies that you meet the minimum requirements: CQC registration, insurance, financial standing, health and safety compliance, and equalities policies. If you fail any element of the suitability questionnaire, your application goes no further. This is not scored — it is binary. You either meet the standard or you do not.

Stage 3: Quality Submission

This is where you differentiate yourself. The council will ask you to describe how you deliver care in response to specific method statement questions. Common question areas include:

Person-centred care: How do you ensure care is tailored to the individual’s needs, preferences, and outcomes?

Safeguarding: How do you protect vulnerable adults from abuse, neglect, and harm? What are your reporting procedures?

Recruitment and workforce: How do you recruit, train, and retain care workers? How do you ensure safe staffing levels?

Quality assurance: How do you monitor service quality? What internal audit and feedback mechanisms do you use?

Business continuity: How will you maintain care delivery during adverse weather, staff sickness, or other disruptions?

Capacity and responsiveness: Can you accept new referrals at short notice? How quickly can you mobilise a new care package?

Communication: How do you communicate with the council, service users, families, and other professionals involved in care?

Your answers must be specific, detailed, and evidence-based. Do not write generalities like “we provide high-quality person-centred care.” Instead, describe your specific processes: “Within 48 hours of referral, our care coordinator conducts a face-to-face assessment in the service user’s home. This includes a review of their care plan, risk assessments covering moving and handling, medication, falls prevention, and environmental hazards, and a discussion with the service user about their preferences for visit times, carer gender, and communication needs. The assessment is documented in our electronic care planning system and shared with the allocated care team before the first visit.”

Stage 4: Pricing

Some frameworks have fixed rates set by the council. Others ask you to submit your hourly rate. If you are asked to submit a price, be careful. The Homecare Association’s minimum price for homecare in 2025/26 is £32.14 per hour. This represents the true cost of delivering one hour of compliant domiciliary care including travel time, training, National Insurance, pension, management, and overhead. Do not bid below this figure. Undercutting on price is the fastest way to build a business that loses money on every hour it delivers.

Stage 5: Evaluation and Award

The council scores your submission using a published weighting — typically 60–70% quality and 30–40% price (or sometimes 100% quality with a fixed rate). If you score above the minimum threshold, you are added to the framework or DPS. You will receive a formal award letter and a contract to sign.

How Referrals Actually Work Once You Are on a Framework

Being on a framework does not guarantee clients. It guarantees access to referrals. Here is how the referral process typically works:

Brokerage Model (Most Common)

The council operates a brokerage team that receives all new care packages from social workers and hospital discharge teams. When a package is ready to commission, the brokerage team sends it to providers on the framework — either by email, through the procurement portal, or through a dedicated brokerage system. Providers who can deliver the package respond with confirmation of availability. The package is allocated based on the council’s published allocation rules — which may prioritise geographic proximity, capacity, previous performance, or rotation.

Zone-Based Allocation

Some councils divide their area into geographic zones and allocate a lead provider for each zone. The lead provider gets first refusal on all packages in their zone. If they cannot accept the package, it cascades to the next provider. Getting a zone allocation is the gold standard — it provides predictable, consistent referral volume.

Cascade / Rotation

Other councils simply rotate referrals through the provider list, ensuring that each provider receives a fair share of packages over time. This is equitable but less predictable.

Self-Referral and Direct Payments

Increasingly, individuals with personal budgets or direct payments choose their own care provider. Being visible online, having a professional website, and being listed on care directories (homecare.co.uk, carehome.co.uk) helps you attract these self-directed clients.

Beyond the Council: Other Sources of Clients

While local authority frameworks are your primary pipeline, there are other important sources of clients that a new domiciliary care company should pursue in parallel:

NHS Continuing Healthcare (CHC)

NHS Integrated Care Boards (ICBs) commission care packages for individuals with complex health needs that require ongoing nursing or healthcare support. CHC packages are typically funded at higher rates than social care packages. To access CHC work, you need to register on your local ICB’s approved provider list — which is often a separate process from the local authority framework. Many ICBs use the pan-London AQP (Any Qualified Provider) model or similar frameworks.

Hospital Discharge Packages

When patients are medically fit for discharge but need care at home, NHS trusts and ICBs commission urgent discharge-to-assess (D2A) packages. These are often short-term (2–6 weeks) but high-volume and at premium rates. Being responsive and available for D2A packages is one of the fastest ways for a new care company to build volume and demonstrate capability.

Private and Self-Funding Clients

Approximately 30–40% of domiciliary care is privately funded. Self-funders typically pay higher hourly rates (£25–£40+ per hour) and are found through online marketing, care directories, GP surgeries, and word of mouth. While slower to build than council referrals, private clients provide higher margins and greater flexibility.

Supported Living

If your company also operates in supported living (providing care within shared or individual tenancies for people with learning disabilities, autism, or mental health needs), you can access a different commissioning stream with longer-term, higher-value contracts. Supported living is typically commissioned through separate frameworks.

Your First 90 Days After Getting on a Framework

Getting onto the framework is not the end. It is the beginning. Here is what the first 90 days look like:

Days 1–30: Build Relationships

Introduce yourself to the brokerage team by name. Make a phone call — not just an email. They allocate packages, and providers they know and trust get packages faster.

Contact the commissioning team and ask about market engagement events, provider forums, and networking opportunities.

Register on the council’s brokerage portal and ensure your company profile is complete, accurate, and shows your geographic coverage and capacity.

Connect with local social workers and hospital discharge coordinators. These are the people who initiate referrals.

Days 30–60: Accept Everything You Can Deliver Safely

When your first referral arrives, respond immediately. Speed and responsiveness matter more than almost anything else in the first few months.

Accept packages that match your capacity even if they are small. A three-visits-per-week package for one person is how every care company starts. Volume builds from there.

Deliver impeccably. The council will monitor your first packages closely. Zero missed visits. Zero late visits. Complete care records. Proactive communication with the care coordinator.

Days 60–90: Build Volume and Reputation

Ask the brokerage team for feedback on your service delivery. This shows professionalism and a commitment to improvement.

Request additional packages as your capacity grows. The brokerage team will allocate more work to providers who are reliable, responsive, and have spare capacity.

Begin tracking your key performance indicators: visit punctuality, care plan compliance, staff turnover, missed visits, complaints, and service user satisfaction.

Prepare for your first council quality monitoring visit. This is typically an unannounced spot check within the first 3–6 months of delivering services.

Writing Winning Tender Responses: Practical Tips

If you have never written a tender response before, the process can feel overwhelming. Here are the practical principles that separate successful bids from unsuccessful ones:

Answer the Question Asked

Read the method statement question three times before you start writing. Many applicants lose marks by writing about what they want to say rather than what the evaluator has asked. If the question asks “Describe how you will ensure service users are protected from abuse and neglect,” your answer must describe your specific safeguarding procedures — not a general essay about the importance of safeguarding.

Use the STAR Format

Structure your answers as Situation, Task, Action, Result. Describe a scenario, what needed to happen, what you did (or will do), and what the outcome was (or will be). This gives evaluators concrete evidence rather than abstract promises.

Reference Your Policies

When describing your approach to safeguarding, recruitment, or quality assurance, reference the specific policies and procedures you have in place by name. “Our Safeguarding Adults Policy (POL-SAF-001) sets out the procedure for identifying, reporting, and escalating concerns…” This demonstrates that your response is supported by actual documentation, not just good intentions.

Demonstrate Local Knowledge

Show that you understand the local market. Reference the council’s commissioning strategy if it is publicly available. Mention specific demographic data (“The over-85 population in this authority area is projected to increase by 18% by 2030”). Show that you know the geography — travel times, rural access challenges, population density.

Include Social Value

Many councils now weight social value in their scoring. This means showing that your company creates additional community benefit beyond the contracted service. Examples include employing local residents, offering apprenticeships, providing training opportunities, using local suppliers, and reducing environmental impact through efficient route planning.

Proofread Ruthlessly

Spelling errors, grammatical mistakes, and formatting inconsistencies suggest a lack of attention to detail. In care, attention to detail saves lives. Your tender response is the first piece of evidence the council sees of how carefully you operate.

The Numbers: What a Local Authority Contract Is Worth

Let us make this concrete with realistic revenue projections for a new domiciliary care company in its first year on a local authority framework:

Metric

Month 3

Month 6

Month 12

Hours per week

30

80

150

Hourly rate

£20–£24

£20–£24

£20–£24

Weekly revenue

£600–£720

£1,600–£1,920

£3,000–£3,600

Monthly revenue

£2,600–£3,120

£6,900–£8,300

£13,000–£15,600

Annualised revenue

£31,200–£37,400

£83,200–£99,800

£156,000–£187,200

Important note on rates: Local authority contracted rates typically range from £20 to £24 per hour, which is below the Homecare Association’s recommended minimum of £32.14. This gap is a well-documented industry issue. Many providers accept council-rate packages to build volume and reputation, then supplement with higher-rate private clients and CHC packages. Your financial model should account for the reality that council rates alone may not cover the true cost of care delivery at low volume.

As volume increases, unit economics improve. A care company delivering 150+ hours per week has significantly lower per-hour overhead costs than one delivering 30 hours per week, because management, insurance, software, and administrative costs are spread across more billable hours.

The Single Most Important Thing

If you take one thing from this article, let it be this:

Get onto the framework before you need the revenue. The procurement process takes 4–12 weeks. Once approved, building referral volume takes another 2–3 months. If you wait until you desperately need clients to start the process, you will run out of runway before the revenue arrives. Apply to your local authority framework the moment your CQC registration is confirmed. In parallel, build relationships with the brokerage team, hospital discharge coordinators, and local social workers. The companies that get clients fastest are the ones that are visible, responsive, and easy to work with.

The care sector is not a business where clients appear organically. They come through structured commissioning processes, professional relationships, and consistent operational excellence. The good news is that the demand is enormous and growing. England’s population aged 85 and over is projected to double within the next 25 years. Every local authority in the country needs more domiciliary care capacity. The clients are there. Your job is to be ready when the referrals arrive.

Zundara (zundara.co.uk) sells pre-built, CQC-ready care companies for £5,000. Every venture includes the complete documentation set required for local authority framework applications: safeguarding policies, quality assurance frameworks, business continuity plans, recruitment procedures, complaints policies, financial forecasts, and 200–400+ additional professional documents. Ready to submit. Visit zundara.co.uk or call 0330 027 2159.

Zundara (zundara.co.uk) ventures include financial models with local authority rate projections and a pathway-to-first-contract guide. See supported living or domiciliary care ventures.

James Whitfield is Contracts & Commissioning Editor at OctusJournal.