How to Win Local Authority Contracts as a Domiciliary Care Agency

Most domiciliary care agencies rely on a mix of private clients and local authority funded packages. Local authority contracts provide a steady flow of referrals, predictable income, and credibility in the market. Winning them, however, requires more than just being CQC registered. Local authorities run competitive tendering processes, and they evaluate agencies against specific criteria that go well beyond having the right policies in place.

This guide covers how local authority commissioning works, what evaluators look for, and how to position your agency to win contracts.

How Local Authority Commissioning Works

Local authorities commission domiciliary care through several routes. The most common are framework agreements, where multiple providers are approved to deliver care within a defined area and packages are allocated from the framework, and block contracts, where an agency is contracted to deliver a set number of hours per week in a specific area.

Some authorities also use dynamic purchasing systems (DPS), spot purchasing for individual packages, and direct award arrangements for specialist services. The trend in 2026 is toward framework agreements that are refreshed periodically, with spot purchasing used to fill gaps.

Tenders are published on procurement portals. Most local authorities use platforms like Find a Tender, Contracts Finder, or regional procurement hubs. If you are not registered on these platforms and checking them regularly, you will miss opportunities.

What Commissioners Evaluate

Tender evaluations typically assess:

• CQC rating: most local authorities require a minimum of Good. Some will accept Requires Improvement with conditions, but this is increasingly rare. An Outstanding rating gives you a significant advantage.
• Quality of service: assessed through your method statements, which describe how you will deliver the service. These must be specific, evidenced, and demonstrate understanding of the local population's needs.
• Workforce: your recruitment strategy, training programme, staff retention rates, and contingency plans for staffing shortages.
• Governance: your quality assurance systems, complaint handling, incident management, and evidence of continuous improvement.
• Price: your hourly rate. Price is typically weighted at 20-40% of the total score, with quality making up the remainder. The cheapest bid does not always win.
• Social value: increasingly, commissioners evaluate what additional value your agency brings, such as employing local people, paying the real Living Wage, investing in staff development, or supporting the local community.
• Safeguarding: your safeguarding procedures and track record. Any safeguarding concerns or CQC enforcement history will be examined.

Writing Winning Method Statements

Method statements are where tenders are won or lost. A method statement is your written response to a specific question in the tender, such as "Describe how you will ensure continuity of care for service users." Evaluators score each method statement against defined criteria.

The keys to a good method statement are specificity (describe what you actually do, not what you aspire to do), evidence (include examples, data, and case studies), relevance (answer the question asked, not a different question), and clarity (write in plain, professional language without jargon or marketing speak).

A method statement that says "We provide person-centred care" will score poorly. A method statement that says "We conduct a comprehensive initial assessment within 48 hours of referral, involving the service user and their family, which forms the basis of an individualised care plan reviewed every four weeks" will score well.

The Importance of Your CQC Rating

Your CQC rating is increasingly used as a gateway criterion. If you do not meet the minimum rating, your tender may not be evaluated at all. This means maintaining at least a Good rating is not just about compliance; it is about commercial viability.

If your current rating is Requires Improvement, your priority should be improving it before tendering for local authority contracts. For guidance on recovering from a poor inspection, see our article on what happens if you fail a CQC inspection. For guidance on achieving the top rating, see our guide to getting an Outstanding rating.

Pricing Your Bid

Pricing is sensitive in domiciliary care commissioning. Local authority funding rates have been under pressure for years, and many agencies struggle to deliver quality care at the rates commissioners offer. Your pricing must cover your actual costs including staff wages, travel time and mileage, training, insurance, PPE, management and administration, and a margin that allows for reinvestment.

Underbidding to win a contract and then being unable to deliver is worse than not winning the contract. It leads to quality failures, staff shortages, and CQC enforcement action. Be realistic about what it costs to deliver the service to the standard you have described in your method statements.

Building Relationships with Commissioners

Tendering is not just a paper exercise. Commissioners want to work with providers they trust. Building relationships before a tender is published gives you an advantage. Attend provider forums and commissioner engagement events. Respond to consultations on commissioning strategies. Deliver existing packages to a high standard, because your track record is the strongest evidence in any bid.

If you are a new agency without a track record, focus on demonstrating quality through your CQC rating, your policies, and your leadership team's experience. Starting with smaller spot-purchase packages and building a reputation is often a more effective strategy than bidding for large framework agreements immediately.