If you’re considering using a framework, or just finding out more about them, we’ve pulled together everything you need to know - and importantly, why your business should use one.
In this blog, we explain what a public sector framework is, how to get started with one, and outline the key benefits it can deliver for your team and the wider organisation.
Jump to:
● What are public sector procurement frameworks?
● How do frameworks help meet public sector procurement regulations in the UK?
● Using traditional processes vs frameworks for public sector procurement in the UK
● The main benefits of UK public sector procurement frameworks
● The main processes involved in good UK public sector procurement frameworks
● Why choose our procurement frameworks for your projects?
What are public sector procurement frameworks?
Public sector procurement frameworks is a preapproved agreement or contract established between a buyer organisation and one or multiple suppliers. A framework outlines the terms and conditions for purchasing different types of goods, works, or services in a cost effective way,
Frameworks often categorise offerings into ‘lots’ by product type or region enabling suppliers to bid for relevant categories.
Frameworks often leverage collective buying power to secure better prices and terms that improves value for money and using pre-approved suppliers and contracts, organisations can minimise paperwork and administrative costs to reduce administrative burden.
The Benefits of Frameworks
Frameworks streamline procurement activities by standardising processes, pre-qualifying suppliers, centralising procurement, providing a pool of suppliers, and enabling faster procurement. This combination of factors leads to significant time and cost savings for organisations, as well as improved quality and compliance.
Standardising processes, establish consistent terms and conditions and reducing the need for extensive negotiations on each individual procurement.
Pre-qualifying supplier means they undergo a rigorous evaluation process to join frameworks, ensuring their quality and reliability therefore eliminating the need for lengthy supplier selection processes for each new contract.
Additionally, they provide centralised procurement often leading to economies of scale and improved efficiency.
Frameworks offer a pre-approved list of suppliers, simplifying the sourcing process and reducing the time required to find suitable vendors that can enabling faster procurement. By eliminating or streamlining many of the traditional procurement steps, frameworks can significantly reduce the time it takes to procure goods or services.
Moreover, they ensure adherence to legal requirements and best practices, mitigating risks and promoting compliance. Frameworks often lead to competitive pricing and reduced costs, as suppliers compete to join and participate in them.
How Frameworks Work
Frameworks operate through a well-defined process. Suppliers bid competitively to join frameworks, demonstrating their capabilities and commitment to quality. Once selected, suppliers are bound by standardised terms and conditions established by the framework, reducing negotiation time. Buyer organisations can easily place orders against the framework, utilising pre-agreed terms, which simplifies the procurement process.
Key Considerations
Buyer organisations must monitor supplier performance to ensure they are meeting expectations and address any issues that arise. Finally, it's crucial to adhere to all legal requirements and regulations associated with frameworks to maintain compliance and avoid potential legal consequences.
● Make smarter, better-informed decisions
● Outline project goals on your terms, such as social value targets
● Improve efficiency
● Establish financial health and reliability of contractors
How do frameworks help meet public sector procurement regulations in the UK?
Navigating the complex landscape of public sector procurement regulations can be a daunting task. Procurement frameworks are designed to align with these regulations, ensuring compliance and mitigating legal risks. By utilising frameworks, public sector organisations can demonstrate adherence to procurement rules and regulations, protecting themselves from potential challenges.
Regulations that frameworks can support include:
-
The Procurement Act 2023 introduces significant changes to the UK's public procurement landscape. Frameworks can play a crucial role in ensuring compliance with the Act's provisions. By following established framework procedures, public sector organisations can promote transparency and fairness by using frameworks because they typically involve open and competitive tender processes, ensuring equal opportunities for suppliers whilst reducing administrative burden.
-
The Public Contracts Regulations 2015 (PCR) set out the overarching framework for public procurement in the UK. Frameworks align with the PCR's principles by adhering to competitive tendering procedures ensuring fair competition by publicising tender notices and award decisions to promote transparency and accountability, as well as, clear and objective award criteria complying with the PCR’s requirements.
-
The Utilities Contracts Regulations (UCR) apply to contracts for the supply of utilities services, such as water, gas, electricity, and telecommunications. Frameworks can help organisations comply with the UCR by using established pool of pre-qualified suppliers, ensuring fair competition for utility contracts and publicising contract awards to promote transparency throughout the tendering process.
In conclusion, frameworks provide a valuable tool for public sector organisations to navigate the complex landscape of procurement regulations in the UK. By utilising frameworks, organisations can demonstrate compliance with the law, enhance efficiency, and improve value for money.
Using traditional processes vs frameworks for public sector procurement in the UK
Traditionally, public sector procurement involves lengthy and often complex tendering processes for each individual purchase. This method can be time consuming, resource intensive, and could lead to delays in delivering essential projects. In contrast, procurement frameworks offer a more efficient approach. By working with preapproved suppliers, our members can simplify the procurement process, reduce costs, and improve overall service delivery.
For example, our Major Projects Framework (MPF2) mandates the ongoing openness and transparency of financial information as a fundamental to providing confidence.
All contractors guarantee to make 100% of payments to their sub-contractors within 19 days as well as provide Procurement Hub with monthly cashflow reports, debtor days reports, margin reports, and revenue Vs budget reports. This is an integral part of ensuring the framework is financially secure and provides confidence that this framework is a viable route to market.
The main benefits of UK public sector procurement frameworks
The main benefits of the frameworks are:
1) Time savings: We work with the industries best specialists across a huge variety of areas, including building safety, decarbonisation and asset strategy
2) Cost reduction: Our team has years of experience helping companies create strategies that work for their business and help drive meaningful outcomes that align with the wider business objectives
3) Risk mitigation: Pre-qualified suppliers and standardised contracts help reduce the risk of procurement disputes and legal challenges
4) Improved efficiency: Streamlined processes and reduced administrative burden enhance overall operational efficiency
5) Access to innovation: Frameworks can encourage innovation by providing suppliers with a platform to showcase their products and services
The main processes involved in good UK public sector procurement frameworks
Our procurement frameworks follow a rigorous process to ensure quality and compliance. We have several frameworks including Major Projects, Strategic Asset Management, Appliances, Furniture and Furnishings and Strategic Materials. They all take into consideration:
· Supplier Selection: We carefully evaluate suppliers based on their capabilities, financial stability, and adherence to public sector standards.
· Framework Development: We create comprehensive framework agreements outlining terms and conditions, pricing structures, and performance metrics.
· Call Off Process: Public bodies can easily access the framework and select suitable suppliers for their specific requirements.
· Contract Management: We provide ongoing support and guidance to ensure the smooth execution of contracts.
Why choose our procurement frameworks for your projects?
Our procurement frameworks offer a range of advantages:
Comprehensive Coverage
We provide frameworks for a wide range of goods and services to meet the diverse needs of public sector organisations.
Expert Support
Our team of qualified procurement specialists are dedicated to assisting you throughout the process.
Savings
Our frameworks have a track record of delivering cost savings and improved efficiency for our clients.
Compliance Focus
We prioritise adherence to public sector procurement regulations to protect your organisation. By prequalifying suppliers and establishing standardised contract terms, organisations can quickly and efficiently find reliable suppliers, ensuring compliance with legal requirement and best practices.
Frameworks significantly reduce the time and resource incurred with other traditional procurement methods. Procurement Hub offers a wide range of frameworks tailored to various needs providing a convenient and efficient solution for public sector organisations streamlining the procurement process for public bodies to save and money. Read our blog post ‘Procurement Solutions – Where do I start?’ to help you begin.
We've partnered with the UK's best suppliers, providing exceptional service and understanding of the public sector. Unlike others, we offer free membership and no hidden fees, giving you unrestricted access to our expert network of suppliers.
Procurement Hub is part of Places for People therefore we have extensive experience in public sector, understand the importance of value for money, and every penny we earn is reinvested into social housing, community projects, and charities, ensuring your business makes a positive impact.
Our CIPS qualified team is dedicated to crafting tailored solutions that boost efficiency and deliver exceptional results.
Discover how Procurement Hub can streamline your procurement process, contact us today to find out more about the public sector procurement solutions we offer.