A guide for suppliers to soft market testing

A guide for suppliers to soft market testing

Before a public sector buyer publishes a tender, they often test the market. They want to know whether their requirement is feasible, what it should reasonably cost, how the market would prefer it packaged, and whether there is enough supplier interest to sustain a competitive process.

Before a public sector buyer publishes a tender, they often test the market. They want to know whether their requirement is feasible, what it should reasonably cost, how the market would prefer it packaged, and whether there is enough supplier interest to sustain a competitive process.

This informal, pre-tender exercise is called a soft market test. It generates no bid, no commitment, and no contract, and the suppliers who take it seriously typically end up in a stronger position than their competitors when the formal tender follows.

This informal, pre-tender exercise is called a soft market test. It generates no bid, no commitment, and no contract, and the suppliers who take it seriously typically end up in a stronger position than their competitors when the formal tender follows.

What soft market testing actually is

A soft market test is a preliminary, non-binding engagement between a public sector buyer and potential suppliers, conducted before a formal procurement process begins. Its purpose is to give the buyer better information to shape their requirement, and to test whether the market can meet it.

A soft market test is a preliminary, non-binding engagement between a public sector buyer and potential suppliers, conducted before a formal procurement process begins. Its purpose is to give the buyer better information to shape their requirement, and to test whether the market can meet it.

It typically takes one of several forms:

It typically takes one of several forms:

• A questionnaire or Request for Information (RFI) asking suppliers whether a requirement is feasible, what it should cost, and how they would approach delivery

  A questionnaire or Request for Information (RFI) asking suppliers whether a requirement is feasible, what it should cost, and how they would approach delivery

• A workshop or supplier day where a buyer presents outline plans and invites feedback

  A workshop or supplier day where a buyer presents outline plans and invites feedback

• A prior information notice published on Find a Tender signalling an upcoming procurement and inviting expressions of interest or written responses

  A prior information notice published on Find a Tender signalling an upcoming procurement and inviting expressions of interest or written responses

In some cases, one-to-one meetings with specific suppliers the buyer has identified as potentially relevant.

In some cases, one-to-one meetings with specific suppliers the buyer has identified as potentially relevant.

What is soft market testing in the NHS?

The NHS uses soft market testing extensively, particularly for complex IT and digital services procurements. NHS England, NHS SBS, and individual NHS trusts all conduct market engagement exercises before launching framework applications or above-threshold tenders, often under the description of "early market engagement" (EME). The terminology varies: soft market test, early market engagement, preliminary market engagement, market sounding. The commercial dynamic is the same in each case.

The NHS uses soft market testing extensively, particularly for complex IT and digital services procurements. NHS England, NHS SBS, and individual NHS trusts all conduct market engagement exercises before launching framework applications or above-threshold tenders, often under the description of "early market engagement" (EME). The terminology varies: soft market test, early market engagement, preliminary market engagement, market sounding. The commercial dynamic is the same in each case.

The difference between soft market testing and the market engagement notice

It is worth distinguishing soft market testing from the formal preliminary market engagement notice (UK2 introduced under the Procurement Act 2023. A UK2 notice is a published, formal invitation to market engagement that appears on Find a Tender and carries specific transparency obligations.

It is worth distinguishing soft market testing from the formal preliminary market engagement notice (UK2 introduced under the Procurement Act 2023. A UK2 notice is a published, formal invitation to market engagement that appears on Find a Tender and carries specific transparency obligations.

Soft market testing is typically less formal and may not generate a published notice at all, particularly below-threshold or for exercises conducted under the Provider Selection Regime for healthcare services. Both represent the same commercial opportunity but at different levels of formality.

Soft market testing is typically less formal and may not generate a published notice at all, particularly below-threshold or for exercises conducted under the Provider Selection Regime for healthcare services. Both represent the same commercial opportunity but at different levels of formality.

Why soft market testing matters commercially

The specification that appears in a formal tender reflects the conversations a buyer has had before the tender was written. Pricing ranges that appear in evaluation criteria often reflect market feedback received during a soft market test. Lot structures, evaluation weightings, and minimum eligibility criteria are all shaped, in part, by the supplier responses a commissioning team received before the procurement becomes formal.

The specification that appears in a formal tender reflects the conversations a buyer has had before the tender was written. Pricing ranges that appear in evaluation criteria often reflect market feedback received during a soft market test. Lot structures, evaluation weightings, and minimum eligibility criteria are all shaped, in part, by the supplier responses a commissioning team received before the procurement becomes formal.

A supplier who responds substantively to a soft market test is in the room when those decisions are being made. One who ignores it is responding to a document partly written around someone else's input.

A supplier who responds substantively to a soft market test is in the room when those decisions are being made. One who ignores it is responding to a document partly written around someone else's input.

The commercial advantage is primarily about establishing credibility, demonstrating genuine understanding of the buyer's problem, and ensuring that the buyer knows your organisation before the competitive stage begins. Most buyers are careful to maintain fairness across the process, so direct specification influence is not the goal. Being a known and credible participant before a formal process starts is a measurable commercial advantage in its own right.

The commercial advantage is primarily about establishing credibility, demonstrating genuine understanding of the buyer's problem, and ensuring that the buyer knows your organisation before the competitive stage begins. Most buyers are careful to maintain fairness across the process, so direct specification influence is not the goal. Being a known and credible participant before a formal process starts is a measurable commercial advantage in its own right.

How to identify when a buyer is running a soft market test

Soft market tests are not always visible. Some are published formally on Find a Tender as prior information notices or preliminary market engagement notices. Others are conducted informally through direct outreach to a shortlist of suppliers the buyer has already identified. A few appear as supplier days or market engagement events advertised on individual buyer websites without generating any central platform notice.

Soft market tests are not always visible. Some are published formally on Find a Tender as prior information notices or preliminary market engagement notices. Others are conducted informally through direct outreach to a shortlist of suppliers the buyer has already identified. A few appear as supplier days or market engagement events advertised on individual buyer websites without generating any central platform notice.

The most reliable way to identify soft market testing activity is to monitor your target buyers systematically rather than waiting for notifications.

The most reliable way to identify soft market testing activity is to monitor your target buyers systematically rather than waiting for notifications.

For NHS buyers, this means reading board papers and committee documents, which regularly reference planned procurement exercises and market engagement activities before any formal notice is published. A trust board paper that references an upcoming soft market test for a clinical IT system is a commercial signal that a tender alert service will never surface. Our guide to what public sector board papers tell suppliers covers how to read these documents as part of a regular commercial process.

For NHS buyers, this means reading board papers and committee documents, which regularly reference planned procurement exercises and market engagement activities before any formal notice is published. A trust board paper that references an upcoming soft market test for a clinical IT system is a commercial signal that a tender alert service will never surface. Our guide to what public sector board papers tell suppliers covers how to read these documents as part of a regular commercial process.

Find a Tender is the other primary source. Searching by buyer name for prior information notices and preliminary market engagement notices (UK2) surfaces the formal end of market engagement activity. Combining this with a regular check of target buyer websites for supplier day announcements or RFI publications covers most of the informal end.

Find a Tender is the other primary source. Searching by buyer name for prior information notices and preliminary market engagement notices (UK2) surfaces the formal end of market engagement activity. Combining this with a regular check of target buyer websites for supplier day announcements or RFI publications covers most of the informal end.

The Procurement Act 2023 has increased the volume of formal pre-tender notices on Find a Tender significantly. Pipeline notices (UK1) describe planned procurements up to 18 months ahead. Preliminary market engagement notices (UK2) signal that a buyer is actively seeking market input. Both are now more consistently published than under the previous Public Contracts Regulations 2015, which means the monitoring process has become more productive for suppliers who have set it up correctly.

The Procurement Act 2023 has increased the volume of formal pre-tender notices on Find a Tender significantly. Pipeline notices (UK1) describe planned procurements up to 18 months ahead. Preliminary market engagement notices (UK2) signal that a buyer is actively seeking market input. Both are now more consistently published than under the previous Public Contracts Regulations 2015, which means the monitoring process has become more productive for suppliers who have set it up correctly.

How to respond to a soft market test effectively

The purpose of a soft market test response is to demonstrate that your organisation understands the buyer's problem well enough to contribute to the thinking around it. Responses that lead with capability claims and product features score poorly. The responses that score highest address the buyer's questions directly, offer a considered view on how the requirement should be structured, and provide data or insight the buyer did not already have.

The purpose of a soft market test response is to demonstrate that your organisation understands the buyer's problem well enough to contribute to the thinking around it. Responses that lead with capability claims and product features score poorly. The responses that score highest address the buyer's questions directly, offer a considered view on how the requirement should be structured, and provide data or insight the buyer did not already have.

Three things consistently improve soft market test responses:

Three things consistently improve soft market test responses:

1: Specificity over generality

1: Specificity over generality

A buyer asking whether a requirement is feasible wants to know whether your organisation specifically can meet it, at what scale, and with what caveats. Generic statements about capability are less useful than specific evidence of comparable delivery.

A buyer asking whether a requirement is feasible wants to know whether your organisation specifically can meet it, at what scale, and with what caveats. Generic statements about capability are less useful than specific evidence of comparable delivery.

2: Honest challenge where the requirement is flawed

2: Honest challenge where the requirement is flawed

If a buyer's draft scope has a structural problem, an unrealistic timeline, a specification that excludes the market's best solutions, a pricing assumption that will attract poor quality responses, saying so constructively and with evidence is more commercially valuable than validating a flawed approach. Buyers conducting soft market tests are trying to improve their procurement. A supplier who helps them do that builds credibility that persists into the formal stage.

If a buyer's draft scope has a structural problem, an unrealistic timeline, a specification that excludes the market's best solutions, a pricing assumption that will attract poor quality responses, saying so constructively and with evidence is more commercially valuable than validating a flawed approach. Buyers conducting soft market tests are trying to improve their procurement. A supplier who helps them do that builds credibility that persists into the formal stage.

3: A clear summary of commercial position

3: A clear summary of commercial position

Many soft market test responses fail to tell the buyer what the supplier would actually charge, or what their preferred contract structure would be. A response that includes a realistic indicative price range, and explains the assumptions behind it, gives the buyer information they need and positions you as a supplier who understands commercial reality.

Many soft market test responses fail to tell the buyer what the supplier would actually charge, or what their preferred contract structure would be. A response that includes a realistic indicative price range, and explains the assumptions behind it, gives the buyer information they need and positions you as a supplier who understands commercial reality.

What happens after a soft market test

The buyer uses the responses to refine their requirements. In most cases, this means adjusting the specification, the lot structure, the pricing framework, or the evaluation criteria before the formal procurement goes live. The formal tender that follows a well-run soft market test is typically more fit for purpose than one that went to market without prior engagement.

The buyer uses the responses to refine their requirements. In most cases, this means adjusting the specification, the lot structure, the pricing framework, or the evaluation criteria before the formal procurement goes live. The formal tender that follows a well-run soft market test is typically more fit for purpose than one that went to market without prior engagement.

For suppliers, the post-soft-market-test period is when preparation for the formal bid should begin. If you have identified the requirement through a soft market test and responded substantively, you should have a clearer picture of what the buyer wants, how they are likely to evaluate responses, and what the competitive landscape looks like. That intelligence should feed directly into bid preparation, not wait for the tender documents to arrive.

For suppliers, the post-soft-market-test period is when preparation for the formal bid should begin. If you have identified the requirement through a soft market test and responded substantively, you should have a clearer picture of what the buyer wants, how they are likely to evaluate responses, and what the competitive landscape looks like. That intelligence should feed directly into bid preparation, not wait for the tender documents to arrive.

The suppliers who win the most NHS and public sector work are not the ones who write the best cold responses to tender documents. They are the ones who have been engaged with the buyer's thinking for months before the document exists. Soft market testing is where that engagement happens.

The suppliers who win the most NHS and public sector work are not the ones who write the best cold responses to tender documents. They are the ones who have been engaged with the buyer's thinking for months before the document exists. Soft market testing is where that engagement happens.

Arcamus tracks pre-tender signals, including prior information notices, preliminary market engagement notices, and board paper procurement references, across NHS and public sector buyers, structured by category and buyer. See what's in the pipeline for your target accounts.

Arcamus tracks pre-tender signals, including prior information notices, preliminary market engagement notices, and board paper procurement references, across NHS and public sector buyers, structured by category and buyer. See what's in the pipeline for your target accounts.