Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted
Framework agreements are a significant but not sole government procurement vehicle needing proper utilisation.
Conclusion
The CCS agreed that there is a pronounced trend, in terms of value, to increasing use of framework agreements moving from other competitive procedures defined in the Public Contracts Regulations 2015. However, CCS did not consider that they were the “wrong” vehicle, but “just one vehicle that we use”. The CCS told us that of the c£260 billion of spend in government every year, £120 billion is what CCS calls its “marketplace” for common goods and services. The CCS agreed that it is certainly the largest, in terms of the volume of commercial agreements, with 86 frameworks. The CCS also told us it has dynamic purchasing systems, which are more flexible and open, in as much as you can bring new suppliers in at any point, whereas a framework is closed for a period of time.40 CCS told us it believes that frameworks do the right thing in terms of competition “if one uses them correctly”.41
Government Response Summary
The government agrees and commits to reviewing current framework guidance, determining whether a separate framework playbook is required, and ensuring clear central guidance, including the collection of performance data, by Autumn 2024.
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation Target Implementation date: Autumn 2024 3.2 Framework agreements are a means which ensure that effective procurements can be 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. 3.3 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. 3.4 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. 3.5 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. 3.6 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.