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Domestic air source heat pumps
Communal air source heat pumps
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18 April 2024
The new regulations replace frameworks and dynamic purchasing systems with three new purchasing tools: frameworks, open frameworks, and dynamic markets. We’ve included a brief description of each of the models below.
What are the main differences between the new models? And, why would a customer choose one over another? We’ve highlighted the main differences between the new models below:
Framework
Open Framework
Dynamic Market
What is the equivalent under PCR 2015?
Framework
There isn’t one – this is a new concept.
Dynamic Purchasing System (DPS)
What’s the framework term?
4 years or less*
8 years**
No express limit
Is the model open to new suppliers? If so, when?
Once awarded it is then closed to all new suppliers
Yes – but only at specific times. The framework must re-open at least once in first 3 years, then at least once in next 5 years
Yes – it is always open to new suppliers
Are direct awards allowed?
Yes
Yes
No
What fees can be charged?
A fixed percentage of the estimated value of any contract awarded
A fixed percentage of the estimated value of any contract awarded
A fixed percentage of the estimated value of any contract awarded***
Where in the Procurement Act are in the rules set out?
Sections 45 to 48
Section 49
Sections 30 to 40
*unless authority considers “nature of the goods, services or works to be supplied” means that a longer term is required. 8 y+ears is the general limit instead of 4 for defence and security of utilities frameworks. **drafting indicates FIXED term rather than maximum. *** not permitted on utilities dynamic markets. A Contracting Authority or Framework Provider may choose to use an Open Framework over a traditional Framework if they are looking to “award successive frameworks on substantially the same terms.” In this case the framework scope and coverage must remain relatively the same for each iteration of the framework. In this case an 8-year term would be permitted. The framework schedule must abide by these timescales:
In terms of Dynamic Markets, the main difference is that they can now be used for any type of supplies or service.
What does this mean for current frameworks and dynamic purchasing systems? Don't worry, Contracting Authorities can still call-off from current frameworks and DPS’ until they expire. New frameworks and DPS’s procured before October 2024 must be procured under the current regs. Any new frameworks or contracts procured from October onwards will be under the new regulations.
What is SEC doing to prepare for the changes? And, will we be looking at introducing open frameworks in the future? We’ve created a Reform Plan which covers a detailed list of actions between now and October 2024. This includes an internal training plan for all our colleagues. Team members are completing the Knowledge Drops and have signed up with the Government Commercial College in readiness for their E-learning modules. We’ve reviewed all Framework procurements in the pipeline for this year. From here we know which will fall under the current regulations, and which ones will fall under the new ones. Open Frameworks is an interesting concept. And we’ve committed to exploring this in more detail ahead of October. We’ll update you on our thoughts ahead of the new Regs going live. We’ll be publishing a roadmap of our preparations to customers and suppliers in June.
Interested in learning more about Procurement Reform? Join us at Procurement AM on 25 April. We’ll be exploring the evolving procurement landscape and ensuring your prepared for the upcoming changes. Learn more and register: Procurement AM - South East Consortium.
We’re also running a contractor focused session on 11 July at the AMEX Stadium, Brighton. Learn more and register: Bid Better on the Road (Sussex) - Contractor Training - South East Consortium We’re also publishing regular news posts on our website.
View them here: Latest Updates on UK Procurement Reform – SouthEastConsortium Alternatively, subscribe to our email newsletters here.
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