An Introduction to Single Provider Framework Agreements
Single provider framework agreements are a method of contracting a single company to complete works over a set period of time. The client will then ‘call off’ works each time their particular products or service are required.
Where this happens, single provider framework agreements have a set of terms and conditions which are in place for the duration of the agreement. This means that every time there is a call off under the agreement the products/services are delivered to the same rules.
Simply put; Single Provider Framework agreements happen when a single company is contracted to provide set outcomes for a set duration.
How do I get one?
European Union public contracts laws mean that if the total value of a framework agreement exceeds certain values, then it needs to be advertised. The limits vary depending on the works required and are explained HERE.
When this happens, companies bid to deliver the requirements of the contract in a process called e-tendering.
The process for e-tendering is explained in the link.
Single provider frameworks are awarded through this competition. After you have competed with other companies, and won, you will enter into a contract directly with the client delivering their requirements, normally on an ‘as and when’ basis.
Things to consider when you bid for a Single Provider Framework Agreement
Bidding for that one successful place on a single provider framework agreement can be a complicated experience and a time-consuming process. There are lots of things you need to carefully consider before you submit a tender:
- The time and effort required
Tendering for these opportunities requires a lot of time and effort. Do you have the time to dedicate to producing the level of quality response you need to be successful?
If you’re not sure you can, then we can help you with this. Why not take advantage of our tender writing services?
- Your business placement in the wider market
Are you in the best position to tender for this opportunity? Can you afford to tender for a single provider framework agreement if you’re not yet strong enough to be successful?
If you’re not sure you are strong enough to bid successfully for a Single Provider Framework Agreement, try our virtual learning environment. Here you can ensure you get the most from tendering. Tender VLE is our free innovative virtual learning environment for businesses wishing to secure work within the UK.
- Your unique selling points
Understanding what you can offer that others cannot is a key part requirement to win any framework agreement. Successful contract wins come from being prepared and being sensible with your submissions.
Our Tender Consultants can work with you to identify your sweet spot based on your experience, abilities and service offering. Our Tender Ready service can help you lay solid foundations for winning that single provider framework agreement.
What the rules are for single provider framework agreements
So, you’ve been awarded a place as the single provider under a framework agreement – Congratulations!
But what does this mean for you in reality?
Framework agreements are governed by The Public Contract Regulations (2015) and these set out how contracts are managed. These are the rules for what you and your client need to do throughout the duration of the works you are contracted for.
When you win a framework agreement, you agree with the Client the terms for all contracted works within the length of the framework:
- You agree as part of your tender the price you will charge for services/products delivered
- You agree the minimum standard of works you will deliver e.g. product quality, level of service etc.
Additionally, on a single provider framework agreement there are two rules you must obey:
- You can only be awarded work which comes under the agreement you originally tendered for
And
- Your client can ask you to provide more information if they want to before they give you any work.
The maximum framework agreement term is 4 years and is set by the Public Contracts Regulations (2015) document. However, your client may choose to set a shorter duration for your framework agreement.
There are a number of reasons this might happen:
- The client does not expect the works will take 4 years to complete.
- The service is not required for the entire 4 years maximum duration.
- The client wants to be able to assess your ability to complete the works and be able to change suppliers
Why do Clients use Framework agreements just for one supplier?
Framework Agreements offer a number of advantages for the contracting authority:
- Increased value for money by using a centralised procurement, cutting down on red tape and unnecessary processes.
- There is a single tendering exercise over the life of the arrangement of the contract. This saves on administration and costs for the client
- The client can ensure they get the best price from the successful supplier due to the competitive way in which the framework is awarded
- Under the framework agreement, the range of the supply of items or services is agreed at the start of the contract. This means the client can request these items or services at short notice as required. This reduces the need to hold goods and materials and saves costs.
- Framework agreements are a way of establishing a long-term working relationship with the supplier.
There are also benefits for you, the supplier on a Single Provider Framework Agreement:
- Long term contracts help you to grow your business.
- Long term planning allows for cost efficiency ordering stock/materials.
- Mutually beneficial long-term working relationships with the Client.
Need a little more information?
Framework agreements can be difficult to understand and even harder to secure. They require a lot of patience to navigate effectively but can ultimately drive long term growth for your business.
For help and support with securing your next (or first!) Framework Agreement check out Tender VLE, or for more bespoke and dedicated support, contact one of our Bid Management Consultants today who will be happy to help!
Find more helpful tips and advice in our blogs. We cover topics including: