A government watchdog is assessing whether changes to schools’ management information system contracts are a cause for concern.
Tes can reveal that the Competition and Markets Authority (CMA) has contacted schools about Education Software Solutions (ESS) making changes to its contracts for its SIMS (school information management systems).
The watchdog is considering whether schools have been given adequate time to switch to an alternative management information system (MIS) product after ESS announced it was tripling the length of school contracts.
The CMA has not yet reached a view on whether this action is a cause for concern and is now contacting schools as part of a preliminary assessment.
ESS is introducing three-year contracts for its SIMS from 1 April but is also giving each school the option to request - providing schools do so by 20 February - the inclusion of a six-month break clause, which will give the school an option to terminate the contract on 30 September.
The CMA is considering whether ESS’ actions may restrict schools’ ability to switch to alternative providers of MIS products if they wish to do so.
Schools have been asked to complete a survey by the CMA by 23 February.
Schools’ ESS SIMS contracts extended
The watchdog has asked schools whether the six-month break clause is “adequate time” to allow schools to assess whether to switch MIS providers, and has asked schools to explain whether the 30 September date causes problems.
If schools believe the six-month break clause is not an adequate amount of time, the CMA has also asked how long they would need to consider switching to a different MIS provider.
Concerns have been raised about whether school leaders have been given enough time to consider potentially moving to another MIS provider after the ESS contact change was announced.
In December last year, nearly 400 schools joined legal action over the contracts proposed by the school information management firm.
ESS wrote to schools in November giving notice that it was ceasing to offer 12 month support contracts and would in future only contract for support on three year terms. Schools had until the end of March to sign up or find an alternative.
Last month it introduced a six-month break clause to its under-fire contract extension.
The Department for Education advised schools in November to “pause before signing” while it investigated the new terms after it was alerted by school business leaders, before giving the green light in December.
Law firm Stone King said the contract renewal notice puts “great pressure” on schools, which it says is “legally questionable”.
ESS previously said that the change in terms from a one-year contract to a three-year contract was introduced to keep up with industry demands.
ESS is inviting schools to confirm acceptance of a new agreement via the ESS online gateway by 31 March 2022, and to notify it by 20 February 2022 if they wish to have the option of a six-month break clause.
An ESS spokesperson said: “ESS understands that the CMA regularly conducts intelligence-gathering exercises to gather views from various stakeholders. Unfortunately, the efficacy of this particular survey could be affected by the subjective nature of the questions and the lack of proper verification which allows anybody, including schools who are not ESS customers, to respond.
“The CMA has made clear that this survey, which focuses on notice periods, should not be taken to imply that ESS has any case to answer nor that the CMA intends to inquire further. Schools have an 11-month period in which to move to an alternative MIS, which should prove more than adequate.
“ESS notes that the Department for Education advised schools in December to proceed as normal in contracting for MIS support. ESS’ new terms bring it into line with the wider market, raising its standard contract length from one to three years.
“ESS has, at all times, acted properly and is confident that were the CMA to conduct an objective evidence-gathering exercise, it would reach the same conclusion.”
An email sent to schools by the CMA and seen by Tes says: “The CMA is considering whether ESS’ actions may restrict schools’ ability to switch to alternative providers of MIS products if they wish to do so. We have not reached a view as to whether ESS’ conduct raises competition concerns, and no assumption should be made in that regard. ”
A CMA spokesperson said: “The survey is just one source of evidence which the CMA is using to assess this issue and we have taken steps to discount any responses which have not been submitted by ESS customers.”
