Welsh edtech company GroupEd has urged the Welsh Government to end the practice of public bodies in Wales procuring through closed frameworks in England, arguing that it locks indigenous firms out of public sector contracts. The Cardiff-based education software provider said its growth has been hampered by Welsh councils opting to procure management information systems via Kent County Council's procurement vehicle, KCS Procurement Services.
Closed Frameworks Exclude Welsh SMEs
Under these arrangements, Welsh councils can award contracts directly to suppliers listed on a closed framework without running an open competition. GroupEd said frameworks are only opened to new applicants intermittently, with the earliest opportunity to join the KCS education software framework being 2030. This means companies offering better technology and value for money are structurally barred from consideration.
According to GroupEd, of the 455 approved suppliers across all 50 KCS frameworks, only two are headquartered in Wales – just 0.4% of the total. Ten of the 12 framework categories contain no Welsh suppliers at all.
Contradiction with Welsh Procurement Law
GroupEd said the practice contradicts the Procurement (Wales) Act 2023 and the Procurement (Wales) Regulations 2024, which place duties on Welsh public bodies to maximise spending with Welsh businesses and consider wider economic impacts. However, when councils use closed English frameworks – classified as 'reserved procurement arrangements' under Welsh law – those duties do not apply to the original supplier selection, conducted under UK Government rules.
Chief executive of GroupEd, Cerys Furlong, said: 'Our founders have invested millions of pounds into building world-class software for Welsh schools and created highly skilled jobs here in Wales. The irony is that several Welsh councils conducted their own open procurement processes, showing it is possible. But too many others are defaulting to a closed English framework because it requires the least effort from their procurement teams. That may be convenient for councils, but it means Welsh public money is flowing to places like Kent invisibly, year after year, while better and cheaper Welsh alternatives are locked out entirely.'
Calls for Government Action
GroupEd is calling on the new Welsh Government to issue a formal direction stating that closed English frameworks should not be used where open Welsh procurement would satisfy the requirement. It also wants the government to enforce existing procurement laws, set a clear policy that Welsh public money should prioritise Welsh businesses, and review current use of reserved procurement arrangements.
Ms Furlong added: 'We are not asking the new Welsh Government to do something difficult. We are asking it to enforce a law it already has, act on a manifesto it has just won, and send a signal that Welsh public money belongs in Wales. A closed framework has no mechanism for merit – it simply reflects who was in a room somewhere in England years ago. The new government has the power to end that. We are watching to see if it will.'
Political Context and Government Response
In its Senedd manifesto, Plaid Cymru committed to increasing Welsh public procurement spending with Welsh SME suppliers from 55% to at least 70% over four years, aiming to create more than 35,000 new jobs. However, Plaid has not clarified potential job losses among non-Welsh SMEs or Welsh corporates, nor estimated staff transfers under TUPE rules.
A Welsh Government spokesman said: 'We want to increase the local economic impact of public procurement in Wales – currently worth more than £11bn a year – to embed that economic activity in Wales, supporting our home-grown small and medium-sized businesses. Schools, colleges and local authorities have the discretion to enter into contracts of their own choice with third-party suppliers in order to meet and support their own data needs and ensure they can meet their statutory obligations. We do not advocate any single supplier so that there is competition in the market and schools and local authorities are able to attain the best contractual terms and conditions for their needs.'
The Welsh Government noted that it liaises with software suppliers through the Software Development Forum, of which GroupEd is a member.
A spokesman for the Welsh Local Government Association said: 'Councils use a range of procurement routes, including frameworks, to secure value for money and meet local needs. Councils are committed to supporting Welsh businesses and supply chains, and recent procurement reforms, including open frameworks and dynamic markets, are intended to improve SME access. Frameworks can offer important efficiencies, but they must be designed and used in ways that reflect Welsh priorities, support fair competition and deliver the best outcomes for communities.'
Despite the challenge, GroupEd, founded by Andrew Cooksley, aims to have its software platform in 10,000 schools by 2030 and is pursuing international expansion.
