Management of procurement frameworks

16.  CCS produces and manages buying frameworks for common goods and services. In 2015-16, CCS had about 110 frameworks allowing public sector organisations to buy goods and services such as office supplies, training, legal services and vehicles. Framework agreements define what will be purchased (such as maximum price and quality of services) and are valid for a certain number of years. In 2015-16 departments bought £6.8 billion of goods and services through CCS frameworks.17

17.  Departments can use frameworks to buy common goods and services either directly, or by conducting a short competition among the framework suppliers. As a result, procurement frameworks can be quicker and more efficient for buyer and seller, and can provide better value for money. However, CCS could not show that its framework deals were always the best available. Aside from lacking complete and consistent information on its frameworks, CCS did not consistently benchmark its frameworks against other deals in the market. CCS told us it had remedied the database issue since the summer and that it had improved its management of frameworks. However, when we asked CCS about benchmarking prices, it told us that it did not collect information on the prices on contracts and that how it really knew whether it was competititve was through "those call-offs and those contracts which are done underneath the frameworks".18 CCS told us that the end users were involved in setting the requirements for the frameworks, and that this ensured that their needs were taken into account. The Cabinet Office added that the accountability for whether a contract was value for money lay with the end user, and that CCS's role was to help end users to buy goods and services that fulfilled their needs.19

18.  CCS has failed to renew or replace all framework agreements before their final expiry dates and before all extension options were used. For example, in 2015-16, CCS had extended framework agreements beyond their expiry dates in areas such as traffic management technology, printing and the supply and fit of tyres. CCS told us that, at the moment, CCS had one expired framework and that there would be three more frameworks that would be extended beyond their final expiry date. This would include the frameworks for consultancy services and temporary staff. Increasingly CCS has been extending its framework agreements. CCS's internal audit team found that CCS had been unable to provide assurance that it kept framework extensions to a minimum. CCS told us that frameworks were designed to be extended, and that CCS did continual market testing.20

19.  The Cabinet Office told us it was content that government had done everything to buy common goods and services legally. However, extending frameworks beyond their final expiry date and issuing contracts under them contravene public procurement rules. CCS told us that extending frameworks should not happen, but that it occurred as CCS was not using its resources effectively. CCS said that by September 2017, all frameworks would be replaced. When it extended frameworks beyond their final expiry date, CCS told us it always engaged with clients and suppliers and took legal advice. It felt it was important that it still had a framework in place so that its customers could continue to buy the goods and services needed.21




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17  C&AG's Report, paras 1.3 and 2.2

18  Q 120

19  Qq 68, 69, 72, 118, 120, 122C&AG's report, para 2.14

20  Qq 88, 89, 90, 120, 124C&AG report, para 2.14

21  Qq 88, 91, 168, 169, 170C&AG report, para 2.14 and Public Contracting Regulation 2015