15 April 2025 Articles

Opinion: The Importance of Frameworks in Public Sector Procurement

 

Frameworks play a crucial role in public sector procurement, enabling buyers to efficiently procure goods and services from a list of pre-approved suppliers under pre-agreed terms and conditions. Frameworks contribute to the streamlining of procurement processes and the achievement of compliant, transparent, time and cost-effective routes to market and delivery of solutions benefiting suppliers and customers, as Celia Fleming, Commercial Manager at Apira explains…

Understanding Frameworks and Their Structure

Frameworks are often divided into distinct Lots, categorising services. Not all Lots are relevant for suppliers for example, Apira typically focus on Consultancy and Digital Transformation Lots. In some cases, there are no limits on the number of suppliers within a framework Lot, while others impose strict caps, creating competitive pressure for available spots. The structured categories help public sector organisations to quickly identify and engage with the appropriate suppliers.

Each framework operates for a fixed timeframe (normally four years). In the past, if a supplier missed the application window or declined to participate, they would need to wait until the next cycle to apply to join. However, under the new Procurement Act, suppliers who missed out initially or new market entrants can apply at set intervals, such as annually. This change aligns frameworks more closely with Dynamic Purchasing Systems (DPS), which allows framework holders to better manage market expectations by being  more flexible about supplier entry.

Framework Spending Limits and Owners

Frameworks have predefined spending limits that dictate the total procurement value that can pass through them. Frameworks are managed by various public sector organisations. Frameworks for the services Apira provide include:

  • Crown Commercial Services (CCS)
  • NHS Shared Business Services (NHS SBS)
  • NHS London Procurement Partnership (NHS LPP)

There are many other frameworks including Frameworks which are focused on particular areas of the country.

Procurement Methods: Further Competition and Direct Award

Depending on the framework rules, customers can either:

  • Use further competitions: This involves running a further competition among suppliers within a specific framework Lot to select the best provider. These mini-competitions allow suppliers to price for a customer’s specific project/statement of work
  • Make a direct award: This allows for quicker procurement without competition, provided that the terms of the framework permit it and if the customers governance arrangements permit this (typically the standing financial instructions (SFIs) will dictate values over which they can’t direct award)

Challenges and Considerations for Suppliers

Gaining a place on a framework requires a significant investment of time and resources. The application process involves answering detailed questions about company credentials, accreditations (such as ISO, Cyber Essentials Plus, and the Data Security & Protection Toolkit), skills, project approaches, case studies, and pricing.

The government is very much encouraging SME (small and medium enterprise) participation in frameworks although participating can be a big commitment for organisations in terms of time and resources. Suppliers must balance framework applications with managing their day-to-day business and bidding opportunities.

Advantages of Framework Agreements

Frameworks offer numerous benefits for both suppliers and public sector buyers, including:

  • Time and cost savings: Streamlined procurement eliminates the need for lengthy and expensive tendering processes.
  • Pre-established terms and conditions: This ensures clarity and reduces the need for complex negotiations.
  • Long-term relationship building: Suppliers and public sector buyers can develop sustained partnerships.
  • Compliance, transparency, and accountability: Frameworks align with procurement directives to promote fairness, equality, and non-discriminatory practices.
  • Ease of access for public sector buyers: Frameworks are often free for NHS and other public sector organisations, though suppliers typically pay a fee on any call-off contracts.

Conclusion

Frameworks are an essential mechanism for public sector procurement, facilitating efficient, compliant, and cost-effective purchasing. While there are a call on resources and time in securing places on a framework, the benefits — such as reduced administrative burden, increased business opportunities, and strengthened relationships — make them a valuable investment for suppliers. With recent changes in procurement regulations, the increased flexibility in joining frameworks will further enhance opportunities for suppliers, particularly SMEs, to engage in public sector procurement. To find out more about the Frameworks we are a part of at Apira please click here or contact Celia celia.fleming@apira.co.uk for more information.

About the author –

With over three decades of business experience, Celia has held various roles in account management, business development, bid management, and commercial management. Since joining Apira in 2022, she has leveraged her extensive experience to help the company secure placements on relevant frameworks and win more business. Celia’s expertise is instrumental in Apira’s continued growth and success.