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Framework Agreement – Top 4 questions to ask yourself!

Posted on by John Hudson

FRAMEWORK AGREEMENT – TOP 4 THINGS TO ASK YOURSELF

You’re most likely to see the term ‘Framework Agreement’ scattered across our tendering portals, asking for multiple suppliers to deliver/supply either one or more services/goods across various locations. Sounds pretty broad, right?

Well, through utilising a Framework Agreement, this is a much smarter way of working for a lot of buyers and procurement agencies. Although it may be a contractual headache at times, the long-term aspects to delivery remain progressive and are more and more often used across the UK procurement sector.

See our ‘TENDERING DOESN’T NEED TO BE COMPLICATED’ blog for other terms you may see!

Multi-provider Framework Agreements are quite simply, contracts or agreements between one or more organisations. There is such a thing as a Single Provider Framework, where one provider is utilised for ad-hoc call-off requests for particular services/goods, however, that is a story for another day.

Multi-provider frameworks can be exhibited via the following example:

London-based Council seeks up to 8 Creative Agencies / Freelancers (per LOT) to undergo multiple creative services. This includes:

  • LOT 1: – Digital Design & Branding
  • LOT 2: – Website Development & Build
  • LOT 3: – PR & Marketing
  • LOT 4: – Managed Print Services

As you can see here, the buyer is asking for 8 suppliers per LOT (service), meaning there will be a total of 24 suppliers as part of this contract. Although you may have to share the spotlight with your competitors, it’s a fantastic way of getting your company heard across the Creative Sector and to show your position in the market alongside your competitors. Plus, there’s work and money involved.

The majority of companies argue that if you don’t score the highest tender, then your impending work is decreased by a long shot. Sometimes, you may be right, but a lot of the time you may be wrong.

Here are the 4 crucial questions you must ask yourself when tendering for a framework agreement:

1. How many suppliers is the opportunity open to?

Remember, the more suppliers the opportunity is open to, the more chance of securing a place on the Framework.

2. Do you have a good chance of winning it?

Obvious question you might say, but you’d be surprised at how many organisations go for work that (at the time of tendering) they could potentially deliver but haven’t got the corporate literature or writing skills to make them stand out on paper. Look at our ‘To Bid or not to Bid’ blog to look at what you can do to ensure your success is maximised! 

3. Are you going for multiple LOTs?

Do you have to submit a response per service/LOT? Does this mean you have to submit 4 or more tender responses? – if so, always make sure you have the resource and time to do this. Never replicate your answers, always give as much time to each individual tender/LOT to ensure increased chances of success. It is better to focus more of your time with something that you can deliver better in, than going for all LOTs where other competitors may have the upper-hand. Go for the LOT where you know you can be number one! If you don’t think you’ve got the upper-hand, then should you be wasting time on it.

4. What is the process of contract award?

One of the most important aspects of a Framework Agreement is to understand the process that you undergo when you’re in the framework and how is work dished out? This could work in multiple ways, so remember to read the instructions carefully. Some examples include:

  • Mini-competition – this is where the buyer asks all suppliers on the framework to quote them a price for a specific job at hand. This may include a quality aspect also. The cheapest quote wins!
  • First Supplier wins all – this is where the supplier who scored the highest via the tender process, will be guaranteed all work. If they can’t deliver a specific element, then it will go down the chain to the supplier who scored second. If they can’t deliver, then the supplier who came third and so on – all the more reason to be completely focused on the service you work best in and become number one!
  • Drop down effect – some buyers take it in turns to disperse work. In this case, the highest-ranking supplier would receive the first job, the second highest ranking supplier the second job and so on.

All decisions to how the framework is managed are declared by the buyer in the ITT (invitation to tender) stage. It’s usually transparent from the get go!

Find out how you can receive various framework opportunities straight to your inbox, by BOOKING A FREE DEMO TODAY!

Frameworks can be extremely complex when tendering for works. Remember our Tender Consultants are here to help!

WHAT IS A DYNAMIC PURCHASING SYSTEM? The DPS in Tendering!

Posted on by John Hudson

WHAT IS A DYNAMIC PURCHASING SYSTEM? The DPS in Tendering!

Here we go again – another term which is not well known in all industry sectors across the UK – a Dynamic Purchasing System.

As always, we are here to help you understand all these ‘niggly’ bits to tendering, to ensure you are prepared to undergo some serious business development planning across your sector and beyond!

You can see the different bidding terminologies applicable in our ‘Tendering doesn’t have to be complicated’ blog. 

In a nutshell – a Dynamic Purchasing System (or DPS for short) is basically a supply chain list where tenders or other bidding opportunities are published to specific members that have been successful in maintaining a position on that list.

As quoted in the Public Contracts Regulations 2015, “[a] DPS should be set up for identified types of requirement, which may be divided into categories of products, works or services.”

This could be any organisation or group of organisations, who wants to outsource work in either one or more service areas [or LOTs] and rather than having 50-100 applications come through for the [potentially many] tenders they publish, they start by narrowing down a set-list of applicants onto their own DPS.

Differences between Dynamic Purchasing System & General Tender processes

The main differences from the typical tender process are that a DPS is to:

  • be run as a completely electronic process (no paper or posting required here)
  • allow new suppliers to join at any time (meaning that if you have been unsuccessful at securing a place – you can always try again in the future)
  • and show longevity in its run (we’ve come across DPS’s which are open for 10 or more years)

All that suppliers would need to do, is register their company onto this DPS online, click which service area they are interested in delivering and undergo a Stage 1 submission in order to secure a place. Once secured, Stage 2 is the actual tendering of the works in question.

For example – A Housing Association could create a DPS for their outsourced Creative activity, which includes a range of service areas/LOTs – i.e. Branding, Printing, Website Hosting etc. They would publish this DPS opportunity to all and then undergo multiple stages to narrow down the process of awarding the work via the ‘most economically advantageous tender’ (MEAT).

Stage 1

In the average UK tender process, a lot of suppliers may be asked to complete a Pre-qualification Questionnaire (PQQ) to help the buyer narrow down their list of Invitations to Tender (ITT). This is now being taking over by a ‘Selection Questionnaire’ on many portals. It’s similar with a DPS – the supplier has to get onto the DPS in order to be Invited to Tender for works and they do this by completing a Stage 1 application process that heavily resembles a PQQ, with maybe a few additional questions thrown in.

Like a typical PQQ-to-ITT process, securing access to the DPS reflects a ‘weed-out’ procedure, with the buyer ensuring they progress all applicants who demonstrate greater strengths in their financial, technical and professional capabilities.

Stage 2

Once you are successful and Stage 1 is complete – it is complete. You do not have to re-do any capability and competency-based questions. Every time a tender is published in relation to your service area, as part of this Dynamic Purchasing System, you are automatically invited to tender and answer all questions specific to that service!

Once on the DPS then a range of tenders will then ensue (as and when required), allowing the buyer to streamline a more technically-focused evaluation on the responses collated.

Where we stand in all of this!

Our Tender Connect platform, which will be launching within the next 12-months, has many traits of a Dynamic Purchasing System, in that a buyer, let’s, for example, say a Design agency on our Creative Tenders portal, seeks a professional company who can support their financial/accountancy needs. All that the Design agency would do is:

  • Log on to Tender Connect
  • View a list of our Professional Tenders subscribers, which encapsulates a large list of Accountancy firms
  • Publish their ‘private opportunity brief’ to a filtered list of suppliers
  • Receive responses, evaluate and award

The reason we filter this list is to avoid publishing opportunities that bare minimal relevance to our suppliers. And to streamline the process for our buyers, helping them publish specific competitive opportunities to the most competent suppliers.

So, if you ever come across a DPS that contains services specific to your offering – get on board.

Our Tender Consultants can help you succeed!