With the Procurement Act’s implementation just around the corner, Crown Commercial Service tells you what you need to know.
The Procurement Act 2023 is currently set to take full effect on 28 October 2024, bringing with it a slate of changes to the regulations that govern procurement in the UK – that is, to the rules that dictate the way money is spent on the buying and selling of goods, products and services.
A number of these changes will see adaptations made to the kinds of frameworks available for use by buyers and suppliers.
Currently, the kind of framework set up by Crown Commercial Service (CCS) is what is called a ‘closed’ framework. This means that once a framework is awarded, no new suppliers are able to join that particular agreement to offer their products, goods or services to public sector buyers during its lifespan.
However, the new regulations will offer the opportunity for CCS frameworks to be developed in different ways to allow for innovation and flexibility in public sector procurement.
Among the changes included in the new Act is the concept of open frameworks.
What are open frameworks?
As the Cabinet Office’s guidance states, open frameworks are a scheme of successive frameworks that may last up to a maximum period of eight years.
In similar style to a closed framework, when a specific agreement is first established, it will include those suppliers whose bids meet the criteria for inclusion.
However, this list of suppliers must be reopened at least twice to allow further suppliers to bid for inclusion, providing more opportunities to suppliers to win work through CCS frameworks and more choice for public sector buyers in how they fulfil their procurement needs.
This new flexibility in how frameworks are designed and managed will give CCS the ability to ensure the needs of the market for any agreement are met in the first instance, while also allowing for changes and innovations in that market during the agreement’s lifespan.
This similarly allows suppliers to evolve their offerings through the lifespan of the agreement, whether through increasing their product or service range, or by revising their pricing in line with the market, and permits buyers to be more ambitious and inventive with their procurement aims.
What are the benefits of an open framework for CCS?
The open framework concept provides a number of benefits for the procurement process for CCS. These include that suppliers can choose to be readmitted with their initial bid in order to stay on an open framework for the full term (a maximum of eight years), or to leave a framework in the scheme and recompete for the next, enabling them to potentially offer more competitive prices or additional services.
Suppliers who were not awarded onto the previous framework have a chance to bid again when the framework is opened, offering new and innovative goods or services, better prices or social value incentives.
There are more inclusion opportunities within markets where the supplier base is changeable and/or contains a high number of suppliers, including SMEs and VSCEs.
A stable specification remains in place for longer periods of time, aiding procurement in markets where demand is constant and unlikely to change, such as common goods and services
The open framework must open at least twice, but CCS can both increase the number of reopening points if necessary, and choose when to reopen an agreement so that this process produces maximum benefit to the market it is working in.
As an open framework must stay on substantially the same terms, CCS can resource-plan effectively for these reopening points to ensure a smooth transfer from one iteration of the scheme to the next.
However, it is still worth noting that an open framework format will not always be the best choice for a new commercial agreement. For example, in markets where there are few suppliers or little diversification of suppliers, it may be better to opt for a four years closed framework.
CCS will continue to use a “Most Advanced Yet Acceptable” approach to designing our commercial agreements, allowing CCS to consider which style of framework would be most advantageous to buyers and suppliers when awarding an agreement.
This approach has been central to CCS’s implementation of the Procurement Act, helping to find the sweet spot between familiarity and innovation and ensuring buyers and suppliers alike are able to maximise the benefits of this landmark procurement reform.
Further help and guidance
You can find out more information about the Procurement Act by visiting our dedicated webpage, and you can also read our guide to preparing for the Procurement Act.
You can also visit GOV.UK to sign up to the Cabinet Office mailing list, to be kept up to date with all of the latest information and guidance and for information about signing up to dedicated Procurement Act training.
