There is a range of options by which framework providers, clients, managers and suppliers can work more closely with SMEs in order to gain the benefit of their specialist expertise and in order to improve social and environmental value through the appointment of local and regional supply chains. For example, where framework providers and clients wish to appoint SME suppliers to their frameworks, they can structure the lotting of those frameworks so as to attract SME bids to particular lots. Framework providers can also offer pre-procurement practical support to SMEs that reduces the cost and burden of bidding.
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The North East Procurement Organisation reports that 'NEPO's Frameworks are structured to support the regional SME market. A Business Club programme gives suppliers free access to training and support e.g. on Bid-Writing and Social Value. Initial market engagement includes access to sessions specifically covering tender requirements, social value requirements and e-tendering support to ensure that Contractors and Suppliers have all of the information to make an informed decision with regards to participating in any competition. We also actively work with regional bodies such as the Construction Alliance North East and the Civil Engineers and Contractors Association to ensure that NEPO are offering the best support to Contractors and Suppliers in line with our Frameworks'. |
A framework procurement can include evaluation criteria linked to proposals that draw out the particular strengths of SMEs, where these are relevant to required and desired client outcomes from prospective framework projects and programmes of work. For example, SMEs may offer relevant expertise based on local or regional knowledge, and may offer efficiency savings, improved social value and a reduced carbon footprint based on their local or regional location.
The Playbook requires public sector clients to 'ensure that demand is aggregated in a way that allows SMEs to play a central role in the sector' (p.16). SMEs are often tier 2 and 3 supply chain members, and the value to them of each individual project is only a fraction of the project value as a whole. Frameworks can play a crucial role in aggregating demand so that SMEs stand to win a share of the work on multiple projects. This aggregation can attract SME bids for a role at different levels of the framework supply chain and can ensure that SMEs are motivated to share their innovations and other ideas for improved efficiency, improved value and reduced risks.
Where framework providers and clients wish directly to influence the appointment of suitable SMEs to tier 2 and 3 supply chain roles, they can run separate tier 2 and 3 specialist framework procurements in accordance with public procurement regulations. This will enable framework providers and clients to require that tier 1 framework suppliers make appointments to framework projects from their tier 2 and 3 SME frameworks.
Aggregation of demand may create framework opportunities that exceed the capacity of SMEs. Pre-procurement market consultation can explore the capacity of prospective SME suppliers, and can balance the benefits of aggregating framework projects against the particular expertise and improved value offered by prospective SME suppliers. This will help framework providers and clients to finalise the optimum framework strategy for engaging SMEs when calling off projects and programmes of work.