Source · Select Committees · Public Accounts Committee
Recommendation 24
24
Accepted
Government prioritises competition within frameworks, encouraging mini-competitions for optimal pricing outcomes.
Conclusion
The CCS commented that government has not extended any frameworks other than during the time of the pandemic. The CCS’s believes that bringing the framework back to market and getting competition is the right thing to do. We were told by the CCS that the 36 C&AG’s Report, para 2.9 37 C&AG’s Report, para 2.8, Figure 5 38 C&AG’s Report, para 13 39 Q 11 40 Q 9 41 Q 10 42 C&AG’s Report, para 3.9 43 Q 23 44 Q 42 14 Competition in public procurement price listed on the framework is the maximum price that the supplier would charge. CCS told us that it advises its customers to run a mini-competition on frameworks, so that they can then get a better price.45
Government Response Summary
The government agrees with the recommendation, setting an implementation target of Autumn 2024. It is currently reviewing framework guidance and standards with stakeholders, and will subsequently determine if a separate framework playbook or augmented guidance is needed to ensure effective establishment and management of frameworks, including data collection.
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.