Source · Select Committees · Public Accounts Committee
Recommendation 3
3
Acknowledged
Issue a 'Framework Playbook' to guide government buyers on managing framework agreements effectively.
Conclusion
Framework agreements have become the most prevalent route for public authorities to buy common goods and services, but the Government Commercial Function has not provided sufficient guidance to address the potential risks to competitive benefits. Framework agreements involve an initial competition for suppliers to gain access to a framework, followed by a shortened call-off process for contracts to be awarded to one of those framework suppliers. Government use of frameworks for large contracts increased from 20% of contracts by value in 2018–19 to 68% in 2021–22. Inappropriate use of frameworks may lead to limiting competition either by not having enough suppliers for a mini competition or too many suppliers to effectively award a contract. The Crown Commercial Service is the largest provider of frameworks for common goods and services, across the public sector. But there are gaps in the data provided by authorities which mean that the Crown Commercial Service lacks data on the number of direct awards made without re-opening competition. The Cabinet Office agrees that it needs more structured data and more effective processes to track procurement from frameworks through the commercial lifecycle to monitor savings effectively. Recommendation 3: The Cabinet Office should issue guidance, for example a ‘Framework Playbook’, within six months to provide central guidance for government buyers on key policies about: • The project delivery model assessment to be carried out by government buyers to inform recommendations on whether a department should or should not use a framework. Competition in public procurement 7 • The effective management processes for frameworks. • The collection of appropriate data to assess whether the outcomes of the framework have been achieved.
Government Response Summary
The government agreed with the recommendation, stating it is reviewing current framework guidance and will determine whether a separate 'Framework Playbook' is required or if existing guidance will be augmented to ensure clear central guidance on framework management.
Government Response
Acknowledged
HM Government
Acknowledged
The government agrees with the Committee’s recommendation undertaken quickly and efficiently from capable suppliers, by multiple public sector organisations, in categories where there are common requirements and where it is important to avoid unnecessary duplication and poor practices. The Cabinet Office has already done much to ensure value is maximised when using frameworks. For example, in 2021 David Mosey at King’s College was asked by the Cabinet Office to produce Constructing the Gold Standard: An Independent Review of Public Sector Construction Frameworks. This outlines how to apply the Construction Playbook principles to construction frameworks and is an integrated and collaborative approach to framework procurement, contracting and management. In November 2023, King’s College and Constructing Excellence launched a verification scheme for assessing consistency with ‘Constructing the Gold Standard’. This is an objective system for recognising and supporting those framework providers and clients who adopt Gold Standard frameworks, framework contracts and action plans. The Cabinet Office is working together with the Crown Commercial Service and other stakeholders to review current framework guidance and the standards that framework providers should meet, to ensure the framework agreements they put in place operate effectively in line with government guidance, policy and regulation. Following the review, the Cabinet Office will determine whether a separate framework playbook is required or whether it will be more effective to collate, signpost and augment existing guidance, taking into account the need for different approaches in different categories of goods or services; as well as the opportunities presented by the new public procurement regulations to establish new types of framework agreement. Together with the Crown Commercial Service, the Cabinet Office will then ensure that there is clear and authoritative central guidance on the effective establishment and management of frameworks, including the collection of data on the framework’s performance.