Not sure where to start? Back to basics: how it all works, what is a framework and what's this OJEU you keep hearing about.
We describe public sector procurement as the process of acquiring supplies, services and works for government departments, agencies and public bodies. Please click here for a full list of Central Government organisations.
“Buyers” in the public sector have to comply with EU & UK Law + various procurement policies and guidelines (depending on value of potential spend). The aim is to make the market competitive for all qualifying suppliers as well as being open and transparent in their buying process so as to stand public scrutiny.
We believe that these are the fundamentals for a successful modern public procurement process:
Advice Cloud are procurement specialists who focus on cloud computing, Information & Communication Technology (ICT) and digital services. Due to recent changes in policy, things are certainly moving in the right direction to make buying technology easier for the public sector:
We love the Digital Marketplace because it replaces the traditional way of public procurement, which is done through individual contracts. It makes procurement cheaper, faster, more transparent and gives suppliers of all sizes and capacities the chance to win government business.
Chris FarthingMD at Advice Cloud
Public procurement processes often used to be about the survival of the fattest. Now with modern tools such as the Digital Marketplace to hand Procurement has the ability to change from the Department of No, to the Department of When and I find that tremendously exciting.
Here, we aim to answer some common questions we come across about how public procurement works.
What is a framework?
A Framework from a public procurement perspective is in effect a list of pre-qualified suppliers that can bid for work around a specific group of goods, services or works. Eg Office stationery, Road Maintenance, PC supply. The aim of frameworks is to allow a purchaser more flexibility around contracted goods or services, in volume and in detail of the requirements. By selecting from multi-supplier framework for its requirements, the contracting authority can ensure that each purchase represents best value. Frameworks are advertised in line with EU & UK procurement law using via an OJEU process. The main benefit of a framework is that the buyers and suppliers do not need to go through the full EU tendering process when awarding work. Therefore making the process faster and often providing better value for money.
What are tenders?
“Tenders” are another term for public sector contracts. “Tendering” is therefore the process of procurement. The public sector will publish a request for goods or services, and suppliers can bid for that business.
What are Prior Information Notices (PINs)?
A Prior Information Notice or PIN is a method used by Public Sector authorities to alert potential suppliers that they may be interested in or looking to buy the services mentioned. It is not a formal call for competition. PINS are published on Tenders Electronic Daily (TED) in the same way a contract is advertised. An advantage of using a PIN is that the authority can then discuss its potential requirements with suppliers in advance to help form their specification or statement of works. A PIN can also allow for a shortening of the tender period (usually by a maximum of 5 days) providing the authority starts tender proceedings xx days after the PIN is issued
What is OJEU?
The Official Journal of the European Union (OJEU) is the online journal that is home to all public sector contracts that are worth above a certain value; it is compulsory to publish these contracts.
The OJEU threshold is currently set at:
£106,047 for Central Government
£328,352 for Defence and Security
£164,176 for other contracting authorities
£62,842 for small Lots.
Around 2500 new OJEU notices are advertised each week, including invitations to tender (ITT), PINs, qualification systems and contract award notices.
When an OJEU notice in the form of an ITT is released, suppliers can officially apply to the framework. The timescales vary for different frameworks, and all will have a deadline, a standstill period, and an official Award date.