Results from the survey to discover if SMEs found the widely adopted Framework Agreement a simple and rewarding process for winning new business from government are now reported below and available HERE.
The survey has been run on behalf of the Frameworks Working Group, a part of the independent SME Advisory Panel advising on central government procurement and targeted key small businesses (& not just construction professionals) providing a wide range of niche products and services to departments across Whitehall.
The results from more than 200 responses are clear.
Framework agreements are often disliked by SMEs who feel that they are written in complex language, have expensive and time consuming tender processes, are inflexible and favour large companies over smaller ones.
Crown Commercial Service are studying the report’s findings and have pointed to several new and ongoing actions government is taking to level the playing field for small businesses including:
- considering where different kinds of procurement vehicle, including Dynamic Purchasing Systems, are suitable delivery models. Crown Commercial Service itself has launched three DPSs in the last 12 months, with five more being developed. We also know of a number of these flexible systems across other government departments;
- simplifying public procurement with the new, plain English ‘Public Sector Contract’ – removing duplication from the application process for suppliers;
- consulting on proposals to exclude suppliers from major government procurements if they cannot demonstrate fair, reliable and effective payment practices with their subcontractors;
- requiring suppliers to advertise subcontracting opportunities via the Contracts Finder website and to provide the government with data showing how businesses in their supply chain, including small businesses, are benefiting from supplying to central government.
In N. Ireland methodologies on the procurement of design, where lowest price is no longer the determining factor have now been agreed between the Central Procurement Directorate (CPD), the RSUA & the construction sector (announced Sept. 2018). This halts the race to the bottom.
Under the pilot all construction services contracts to be awarded by CPD, both above and below the EU threshold, will be awarded in one of the following ways:
- Projects with no quality assessment at tender stage will be awarded based on the Mean Narrow Average calculation;
- Projects with a quality and price assessment at tender stage will base the price score on the Mean Narrow Average calculation; or
- Projects with a fixed fee tender will be awarded on the assessment of quality only.
The first CPD procurement using the Mean Narrow Average is currently at prequalification stage.
Mean Narrow Average
In a move to ensure value, the fundamental shift is that the best price will no longer be the lowest price but the price that is closest to an average. The average that will be used is a ‘narrow average’. The lowest price and highest price are not part of the calculation to establish the ‘narrow average’.
Full details of the Mean Narrow Average calculation are available here. Those interested in bidding for CPD projects are strongly advised to review this and ensure they fully understand it.
For all in construction, and design professionals in particular this is surely an extremely welcome and long overdue step.
But this is not the only one of the advances being made in the UK nations -N. Ireland, Scotland and Wales have all now also adopted Project Bank Accounts although from different threshold values.
Isn’t it now time for England to advance, reform and follow suite?
The European Single Procurement Document (ESPD) came into force on 26 January 2016, is now aligned to UK procurements and its digital implementation across Europe will be completing in 2017 – What more do you need to know and do? Read more here.
(This article originally appeared on Dec. 16, 2017 on the Architects’ Journal website, HERE.)
Those with their noses pressed firmly to the grindstone of the public sector will know that 2016 presented an increasingly exasperating array of pungent procedures and cack-handed contracts.
Despite evidence of good practice emerging in isolated pockets across the UK, many of us continued to wrestle with excessively complex, unnecessarily verbose prequalification questionnaires and archaic and bewildering web portals seemingly coded on a Commodore 64.
It was a big year for high-profile cultural projects. The Museum of London began and concluded the selection of a design team for its new Smithfield home, with the award going to a talented team headed by Stanton Williams. Meanwhile, in Essex, Southend-on-Sea Borough Council commenced, abandoned, and began again its search for an architect to take forward the Thames Estuary Museum it had previously awarded back in 2009, but which had ground to a halt in the seven years since AEW’s original scheme won planning. Quite who’s up for taking on this apparently Sisyphean task might become apparent early in the new year.
Continue reading “The highlights (and a few low points) of 2016’s design competitions”