How will frameworks change under the new Procurement Act?
Whilst the new Procurement Act will allow existing providers to use their current frameworks until they expire, or the value is exhausted, there will be several changes that will impact on new frameworks once the Act comes into place on 24 February 2025.
In this article, NHMF Frameworx Direct, David Miller examines 4 key changes being introduced under the new Procurement Act and asks how they will affect providers, buyers and suppliers.
#1 Framework notices
From February 2025, notices published by framework providers will be required to provide more information than was previously stipulated. Once the new Act comes into place, they will need to include:
- A description of goods, services or works which may be called off from the framework
- The price payable, or the mechanism for determining the price payable, under such contracts
- The selection process for awarding call-off contracts from the framework
- The term of the framework
- Which Contracting Authorities are entitled to award contracts under the framework
- The estimated value of the framework
- Whether the framework is an open framework
Whilst the requirement has been welcomed as a positive move to improve transparency, there has been some criticism that more data doesn’t always equal better data, and the increased administration associated with filing new notices will create a more cumbersome process.
#2 Introduction of open frameworks
This new type of framework is intended to improve flexibility, promote a more competitive market and provide a level playing field, making it easier for Contracting Authorities to procure from SMEs and new suppliers.
As with regular frameworks, potential suppliers can bid to join the framework agreement before the start date. The key difference is, unlike traditional closed frameworks, the new system can be opened up at least twice, once they are live, giving Contracting Authorities the ability to appoint new framework suppliers whilst the current framework is still ‘in date’.
Open frameworks will also have a longer lifespan of up to 8 years – twice the length of previous closed framework agreements.
#3 Clarity to the call-off process
The current system of contracts being awarded either through mini competition or a direct award is not set to change. However, what will change is Contracting Authorities will only be permitted to use the direct award system if the framework has clearly displayed the “core terms” of the contract and the “objective mechanism” being used for supplier selection.
The revised wording, referencing “core terms” is a subtle, but important distinction from the current procurement regulations, which refer to “all the terms governing the provision of the works, services and supplies concerned”.
It is expected that this change will not only reflect how frameworks are actually used in real life, but it will also make it easier for authorities to award contracts directly in cases where this is the most common-sense approach.
#4 Publication of framework notices and call-off information
Currently, Contracting Authorities are only obligated to provide rudimentary details on the Contracts Finder website, including the supplier’s name, the date the contract was entered into, and the contract value.
This system has come in for some criticism, due to the lack of transparency and potential for anti-competitive call-off processes.
From February 2025, both call-off contracts and non-framework contractswill be subject to the new ‘contract award notices’ and additional ‘contract details notices’. These will now include details of both the successful and unsuccessful tenderers, (where applicable).
How will these changes affect buyers and suppliers?
The changes have been broadly welcomed by the sector for promoting transparency and ushering in a more straightforward approach.
The new award notices – including Planned Procurement Notices, Transparency Notices pre-contract, as well as Contract Change Notices and Contract Termination Notices are also likely to improve public accountability. However, there is some concern that new notices will not automatically equate to more meaningful public procurement data, and public sector workers tasked with managing the influx of new notices may struggle to keep up with the additional workload this could create.
In summary, whilst the amendments to the Procurement Act are likely to provide a welcome alternative for procurement teams, the sector will have to wait until next year to see how much the new open frameworks are actually used. Whether the promise of more opportunities for SMEs and a more competitive procurement model across the board comes into effect remains to be seen.
With the combined expertise the Frameworx team has to offer, one thing for certain is we will be ready for February 2025, and will continue to offer a robust procurement platform that delivers for suppliers and clients, to achieve the best outcomes for your next procurement project.
About the Author
David Miller, NHMF Frameworx Director, Consultant at Rand Associates and Chair of M3 Housing
David is a quantity surveyor by profession, being a Member of the Royal Institution of Chartered Surveyors, and a Fellow of the Chartered Institute of Building, he joined Rand Associates in 1975 and has been involved in the maintenance of social housing for the last 25 years.
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