Crown Commercial Service provides an explanation of open frameworks and the opportunities they present for the public sector
The Procurement Act 2023 is implementing a slate of changes to the regulations that govern the way money is spent on the buying and selling of goods, products and services in the UK.
Among the major changes is the introduction of a new kind of procurement framework called an open framework.
The introduction of this concept offers the opportunity for CCS frameworks to be developed in different ways to allow for innovation and flexibility in public sector procurement.
What is an open framework?
Under the previous regulations, Crown Commercial Service (CCS) frameworks operated as a ‘closed’ framework. This means that once a framework is awarded, no new suppliers can join that particular agreement to offer their products, goods or services to public sector buyers. They remain closed for a maximum period of four years (eight years for defence and utilities) or longer through justification in certain markets.
Open frameworks are a scheme of successive frameworks that may last up to a maximum period of eight years.
When a specific agreement is first established, it will include a list of suppliers whose bids meet the criteria for inclusion in a similar manner to a closed framework.
This list of suppliers then must be reopened at least twice over the lifetime of the framework 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 gives CCS the ability to ensure the evolving needs of the market for any agreement are continually met, while also allowing suppliers to react to changes and innovations in that market during the agreement’s lifespan by updating their offerings.
This similarly permits buyers to be more ambitious and inventive with their procurement aims by taking advantage of up-to-date and varied product and service offerings.
What are the benefits of an open framework for the public sector?
Open frameworks provide a number of benefits for buyers and suppliers across the public sector. These include:
• New suppliers to the market or those that miss out on one version of a framework can be added in at various stages through the lifetime of an agreement, offering new and innovative goods or services, better prices or social value incentives against an agreed specification and set of terms and conditions.
• Suppliers can choose to be readmitted based on their initial bid to stay on an open framework for the full term of the agreement, or leave a framework in the scheme and recompete for the next, enabling them to potentially offer more competitive prices or additional services.
• Open frameworks can operate in markets where suppliers diversify quickly, or where new entrants to the market regularly emerge.
• Providing opportunities to refresh the agreement within unstable markets where the supplier base is changeable or contains a high number of suppliers, including SMEs and VSCEs.
• Allowing a stable, unchanging specification to stay in place for longer periods of time benefits markets where the need for certain products and services is stable and likely to be required regularly.
How will CCS use open frameworks?
Open frameworks can now be developed under the new procurement regulations. However, this does not necessarily mean they will automatically become CCS’s procurement model of choice.
CCS will still continue to operate using a combination of open and more traditional closed frameworks. However, we will now also consider whether awarding an agreement using open frameworks would be advantageous.
This is because 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-year closed framework.
CCS will consider which style of framework would be most advantageous to buyers and suppliers when awarding an agreement and employ a “Most Advanced Yet Acceptable” approach to designing our commercial agreements. This approach helps CCS find the sweet spot between familiarity and innovation and ensures buyers and suppliers alike can maximize the benefits of the new regulations.
Further help and guidance
Buyers and suppliers can learn more about the Procurement Act by visiting our dedicated webpage.
They can also visit GOV.UK to learn more about the provisions of the Act, find the Cabinet Office’s guidance and support resources and access training opportunities.
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