A deep dive into Public Sector Frameworks

A deep dive into Public Sector Frameworks: A deep dive into Public Sector FrameworksProcurement Services to take a deep dive into public sector procurement using frameworks. During a series of in-depth discussions, we explored the intricacies of public sector procurement frameworks both from our own experiences and from working with Procurement Services.

We examined what a framework is, how frameworks operate, how easy it is to access frameworks for suppliers, particularly SMEs like Granby, and the benefits that follow. Both Granby and Procurement Services have seen first-hand how effective collaboration within frameworks can lead to improved efficiency and productivity for public sector organisations and suppliers. And we show how the process of applying for and engaging with frameworks is quite straightforward, although it may appear initially to be a complex process with a lot of potentially technical language.

Procurement Services Frameworks and Granby

Granby has recently been accepted onto the Procurement Services Logistics, Warehousing & Removal Solutions framework, as an approved supplier.

LOT 1 of this framework covers warehousing and storage and LOT 2, Logistics Transport Services, covers warehouse management systems, and warehouse distribution. In addition to this framework, Granby is already on the Courier Services & Specialist Logistics framework for Procurement Services.

“As an experienced third-party logistics company that has worked extensively with the public sector, it’s great that we’re adding the Procurement Services framework to our portfolio. We bring a lot to the table – first-class logistics services paired with skilled teams. It’s especially rewarding to be on the Warehousing and Storage LOT as we are about to enter a big year for the Warehousing sector, with the UKWA having designated 2024 as the UK Year of Warehousing.” Victoria Pittman, Head of Client Services and Business Development

What is a framework?

A public sector framework is a pre-established agreement between a public sector such as Procurement Services and a number of awarded suppliers. The framework agreement outlines the terms and conditions for procurement of goods, services, or works. These frameworks are designed to streamline the procurement process, save time and resources for both public sector organisations accessing them and suppliers, and ensure compliance in accordance with Public Contracts Regulations 2015 .

“Frameworks are a procurement tool that pre-vets suppliers, making it easier for customers to procure compliantly.”

Procurement Services

Suppliers, including small and medium-sized enterprises (SMEs), can access these frameworks to bid for contracts and provide their products or services to public sector organisations.

“Frameworks provide opportunities for SMEs to compete cost-effectively for contracts in the public sector.” Victoria Pittman, Granby.

Who can use a framework?

Any publicly owned or partially publicly owned organisation can use a framework. For example, Government departments, local authorities, the NHS, charities, publicly funded schools.

What are the benefits of using a framework?

The biggest benefits for the public sector organisation are saving time and resource, access to expertise, and support before, during and after the tender process. Pre-established frameworks are of particular benefit in terms of saving time, especially for urgent acquisitions. There can also be cost savings, as the suppliers will already have been vetted and standard terms and conditions agreed. A key benefit is pre-qualification of suppliers: rigorous vetting ensures that reputable and reliable suppliers are appointed to the framework, especially around policies, procedures, social value, and sustainability.

And for suppliers? What are the benefits?

The primary benefit is that SMEs will find it much easier to obtain public sector contracts via a framework than they would have had otherwise. Frameworks help suppliers by providing them with a structured and transparent procurement process. This allows suppliers, especially SMEs, to compete on a level playing field with each other as they are designed to promote fair competition and equal opportunities. One of the key benefits for each supplier is the simplified tendering procedures. We know these take up a lot of time ordinarily but by being on a framework this is a one-off task.

What frameworks does Procurement Services have coming up and how can suppliers apply for them?

Procurement Services will be continuing to grow it’s framework portfolio in the near future. There are currently frameworks across banking and finance, education, emergency, facilities, fleet, health and social care, highways, office, people and professional services, property management, and technology.

Applying for frameworks is a relatively simple process. It may appear daunting, but the reality is anything but that. Procurement Services and other framework providers support suppliers with key information at each step of the process. SMEs have absolutely no need to be intimidated.

How easy is it for customers to use frameworks?

Procurement Services provides a customer user guide for each framework. This contains all the information a customer needs in order to use the framework. So, that’s everything from the scope of supply, any direct award and further competition criteria, the list of suppliers, and which LOTs they have been awarded on. It even includes the Customer Access Agreement Form which all customers will need to complete and send to Procurement Services prior to using the framework.

How easy is it for suppliers to use frameworks?

This is all rather straightforward. Once a supplier has been appointed to a framework and the contracts have been agreed and signed, there is an introductory meeting with Procurement Services. It is at this meeting that all processes and procedures will be agreed. Quarterly meetings will be put in the diary and Procurement Services will e-mail the supplier every month for MI reports which will need to be filled in with any invoices the supplier may have raised for customers using the framework. Finally, there is a self-audit to be completed on an annual basis.

“It appears very straightforward on paper, and in reality, it is. Both Procurement Services and Granby would encourage any supplier to make sure they read all the documentation. Then follow the process as outlined, and there should be no difficulties at all from an administrative perspective.” Victoria Pittman

What are the costs to customers and suppliers of engaging with frameworks?

Procurement Services frameworks are free for customers to use. For suppliers, there is a framework management fee. This feet is based on the customer’s order value. This in turn is calculated as a percentage of the net invoice value, reported monthly. For suppliers, there are no other charges for being on the framework.

“Yes, that’s it. No upfront costs. There is the rebate fee but that is only charged once the contract has been awarded. So, all very clean, all very simple.” Victoria Pittman

Awareness of Public Sector Frameworks

One of the main reasons for us to have these conversations with Procurement Services has been around raising the profile of frameworks. And to do this for both public sector organisations and suppliers. We would say there are opportunities for both but historically there has been a lack of awareness, certainly amongst small and medium-sized enterprises, of these opportunities. We all want to ensure that SME’s as well as publicly owned organisations are fully aware not just of the opportunities presented by frameworks but also of the ease of that process.

2023 Procurement Act and Public Sector frameworks

All of which brings us to the 2023 Procurement Act. This will be rolled out in autumn 2024.

For suppliers, this will mean a number of changes and many more potential opportunities. Why? Well, the Act aims to create a simpler and more transparent system for everyone, which we welcome. It will make it easier for suppliers, especially SMEs to win contracts on frameworks. This should be seen not only as great news for businesses across the country. Especially those looking to compete in the procurement market. But also for public sector organisations awarding contracts. This will be because they will be better placed to look at appointing approved SMEs.

Social Value is talked of as a key element in contracts awarded under frameworks. What is it, and why does it matter?

One area we have all heard more about in any conversation around frameworks is social value. But what is it and why is it important? Social value is all about the contributions that are delivered back into local communities. Suppliers will be evaluated by price and quality as ever, but increasingly by social value as well.

Social value projects could include volunteer days, employment opportunities, training and development for local job seekers. Others include health and well-being initiatives, charity fundraising for local projects.

“For Granby, social value has always been at the heart of every project we conduct. Whether that’s on or off of frameworks. In truth, it has been on our agenda for at least a decade and especially since the Public Services (Social Value) Act came into force in 2013.” Victoria Pittman

Now, with the 2023 Procurement Act and its focus on social value, we have noticed a significant ramping up of the commitment to ensuring social value is delivered from framework contracts. Granby would look at delivering social value as part of the contract. This is regardless of whether we are looking at a 3PL, contract packing, promotional marketing, handling and fulfilment, or reverse logistics solution. We do this primarily because we believe it is the right thing to do. But also because it makes solid commercial sense. Today, some public sector tenders weigh the social value aspects of a contract at 40% of the score needed to win the contract. This compares with 20% two years ago.

What’s next?

As part of this exercise with Procurement Services we are in the process of producing a couple of webinars. One looking at frameworks from the point of view of the Public Sector customer. And one from the perspective of the supplier, particularly the SME supplier. We look forward to sharing these during the next month.

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