Market Tenders
An independent review and market tender ensures your organisation is receiving the most appropriate superannuation products and services and the best value for money.
Undertaking tenders for superannuation products and services is a core function of National Benefits, and it is a service which we are frequently asked to perform. There are several reasons for this:
- National Benefits is one of the only consultancies in the market which is truly independent. We are not affiliated to any company which supplies the products or services tendered for, and as such we have no conflicts of interest in the provision of advice to our clients. Consequently, we are impartial with respect to evaluating provider offerings;
- National Benefits is recognised as a specialist employee benefits consultancy with expert knowledge of the market, and which can be relied upon to produce work of the highest quality and commercial practicality;
- Business managers are aware that competitive changes occur often, resulting in a need to periodically test the market to ensure that they are receiving the best possible offering in terms of pricing, content, quality and terms;
- Scheme trustees are particularly aware of their fiduciary responsibilities to their members. They realise the value and protection afforded by independent advice, and the benefits which result from a properly-conducted process which delivers competitive market terms.
The types of products and services which are most commonly tendered are investment management, master trusts, and superannuation scheme administration.
Reviewing Existing Arrangements
The need for periodic reviews and re-tendering of existing arrangements arises for a number of reasons. These include:
- Competitive shifts in the industry;
- A deterioration in the quality of an existing service;
- The emergence of new products and services;
- Complacency by the provider due to the client being taken for granted;
- Proposed or applied price increases to an existing product or service;
- Efficiency gains by the provider which are not shared with the client;
- Industry mergers and acquisitions;
- Changes in the people providing the service;
- Advances in technology which would enable a more cost-effective solution.
A competitive market tender is usually the most effective way to respond to these situations.
Outcome
The benefits which you can expect to receive from an independent review and market tender conducted by National Benefits are:
- A result which delivers on your organisation's specific objectives;
- An analysis of the future needs of your organisation which the product or service must satisfy;
- A detailed design specification for the product or service to be delivered;
- A set of measurable service standards which are to be met by the provider;
- Knowledge that the product or service contracted for is the most favourable on offer by the market;
- Delivery of the feature most valued by your organisation, whether it be best price, quality, or content;
- Added value through commercial negotiation experience and skills;
- The selection of a provider with a clear and unambiguous understanding of your requirements and expectations;
- A contract which accurately reflects the pricing, content, service standards, terms and conditions agreed upon;
- Optional performance reporting and monitoring of the provider.
Further Information
If you feel that your organisation could benefit from an independent review and market tender of its existing superannuation arrangements, or if you are considering implementing a new superannuation product or service, please contact us.
If you are not sure of whether a review is appropriate in your circumstances, or if you would like some indication of the prospective benefits of a review, then we can assess your existing arrangements and advise you of the best course of action.
Superannuation Services