Understanding the Competitive Flexible Procedure, Request for Proposal, Framework, and Dynamic Markets Options in UK Public Sector Procurement
Procurement is a crucial part of the UK public sector, ensuring transparency, competition, and value for money. The Procurement Act 2023 introduced new tools as well as updates to existing ones, helping contracting authorities (like you) procure goods, services, and works more effectively. This short article explores the key differences and benefits of four common procurement approaches: Competitive Flexible Procedure (CFP), Requests for Proposal (RFP), Framework Agreements, and Dynamic Markets.
Open Procedure
The Open Procedure has been retained from the old Public Contracts Regulations 2015. It’s a single stage tendering procedure without restriction on who can submit tenders.
Key Features:
• Single stage. • No negotiation permitted. • No minimum number of suppliers.
Benefits:
• Ideal for contracts where there is a limited number of suppliers. • Procedure only needs to be open for 25 days (10 days if a Planned Procurement Notice has been published)
Competitive Flexible Procedure
The Competitive Flexible procedure is a new tool introduced under the Procurement Act 2023. It replaces multiple previous procedures, giving you more freedom to design procurement exercises that meet your needs.
Key Features:
• Flexible design: Authorities can determine the stages, requirements, and timelines. • Competitive: All suppliers have an equal opportunity to participate. • Suitable for most procurements including those that are complex or innovative.
Benefits:
• Greater efficiency by tailoring the process. • Ability to add a stages for elements such as pre market engagement, participation, presentations or demonstration sessions but be mindful of proportionality. • A stage for optional negotiation can be included something not previously available under the old Restricted Procedure that most schools and Trusts used.
Requests for Proposals (RFP)
An RFP is a formal method of inviting suppliers to submit proposals, used when procurement value is ‘below threshold’ for a tender process compliant with the Procurement Act 2023. For details of the relevant thresholds you can review our previous blog post “Does My Tender Need To Be Compliant With The Procurement Act 2023”.
Key Features:
• Suppliers submit detailed proposals addressing specific requirements. • Evaluations considering both quality and price. • No requirement to publish any notices on the Find a Tender Service.
Benefits:
• Allows schools and Trusts to operate on an ‘invitation only’ basis ensuring bids are received from only those companies you are interested in working with. • Usually a one stage process enabling a shorter timetable (although we’d still recommend a minimum of 3-6 months to run it).
• Provides a structured yet flexible evaluation process.
Framework Agreements (Open and Standard)*
Frameworks are widely used agreements allowing contracting authorities to call off goods, works, or services from a pre-approved list of suppliers over a fixed period. If you are using someone else’s framework, it is important for you to check the terms of the framework to ensure it was set up to be used by schools and Trust.
Key Features (Open):
• A ‘scheme of frameworks that provides for the award of successive frameworks on substantially the same terms’. • Must be reopened once during the first three years and every five years thereafter, up to a maximum term of eight years. • Can be single-supplier or multi-supplier although the former can only be awarded for four years.
Benefits (Open):
• Useful for when there is a repeat need but exact quantities and timings and perhaps specifications are unknown. • New suppliers can be added to the scheme of frameworks at different points. • Provides certainty and stability for suppliers and buyers.
• A fully compliant route to market for schools and Trusts who do not wish to run their own independent tender process.
Key Features (Standard):
• The same rules as Open Frameworks with the exception it can only be awarded for four years and once it has been awarded it cannot be re-opened.
• Can be single-supplier or multi-supplier although the former can only be awarded for four years.
Benefits (Standard):
• Ability to call off via a competitive selection process (‘mini-competition’) or direct award (if the framework allows for this and there is an objective mechanism).
• There is a degree of flexibility in the competitive selection process.
• Provides certainty and stability for suppliers and buyers.
• A fully compliant route to market for schools and Trusts who do not wish to run their own independent tender process.
* Please note that the details provided here relate to frameworks awarded under the Procurement Act 2023. There are different features, benefits and rules for those awarded under the Public Contracts Regulations 2015.
Dynamic Markets
A Dynamic Market is similar to a framework but with more flexibility, as new suppliers can join at any time.
Key Features:
• Unlike a framework a Dynamic Market is not a public contract, it is basically a list of suppliers.
• Suitable for commonly used goods and services.
• Continually open so suppliers can join if they meet selection criteria.
• No limitations on the duration.
IMPORTANT: It cannot be used to award any ‘below threshold’ contracts which may mean it’s unsuitable for schools and Trusts.
Benefits:
• Promotes ongoing competition and supplier diversity.
• Increases opportunities for SMEs to participate.
• Reduces barriers to entry and supports innovation.
Choosing the Right Approach
Each method has unique strengths:
Competitive Flexible: Best for most procurements including complex, innovative, or highly tailored for above threshold tenders
RFP: Ideal for ‘below threshold’ tenders whist ensuring good rigour and compliance for the procurement process.
Frameworks: Suitable for frequent, repeat purchases where a fixed supplier base is preferred, or for above threshold tenders on a truncated timetable
Dynamic Markets: Useful for ongoing needs and encouraging market competition.
The Procurement Act 2023 provides contracting authorities with the flexibility to choose the most suitable route based on your objectives, complexity, and supplier market. By leveraging these tools effectively, authorities can achieve greater value, transparency, and innovation while supporting diverse suppliers.
