How open frameworks benefit public sector buyers – Procurement Essentials

Under Public Contracts Regulations 2015 regulations, Crown Commercial Service (CCS) framework agreements operated as ‘closed’ frameworks. This means that once a framework is awarded, no new suppliers are able to join that agreement to offer products, goods or services to public sector buyers. They normally remain closed for a maximum period of 4 years (8 years for defence and utilities), but this can be longer through justification in certain markets.

However, the Procurement Act 2023 has introduced a new type of framework called an open framework, which has a number of key benefits for public sector buyers. 

What are open frameworks?

An open framework is a new type of agreement designed to give greater flexibility to both buyers and suppliers, and provide more opportunity for innovation. 

Put simply, an open framework is a series of smaller frameworks running one after another under one banner, lasting up to 8 years in total. 

Open and closed frameworks both allow suppliers to bid for inclusion at launch. Those that fulfil the selection criteria get awarded a place on the agreement. 

Under a closed framework, no new suppliers or services can then be added for the agreement’s lifetime. Unsuccessful suppliers must wait until a new iteration of the agreement is launched to bid again. 

However, an open framework must be re-opened at least twice during its lifetime.

These opening points allow:

• new suppliers or those not awarded at the first time of asking to bid for inclusion
• existing suppliers to be readmitted based on their initial bid 
• awarded suppliers to expand or change their service offering or pricing
• suppliers to leave a framework and recompete at the next opening point 

What are the benefits of open frameworks to public sector buyers?

The open framework approach is intended to help you, as a public sector buyer, access even more suppliers and services, and get better value for your money through increased competition and innovation. 

The flexibility to add new suppliers at different stages of the agreement means a wider range of suppliers are potentially available to you, including small and medium sized enterprises (SMEs) and voluntary, community and social enterprises (VCSEs). This is particularly important when you are buying in markets where the supplier landscape frequently changes, giving you more buying options. 

The capability for suppliers to add new products and services to their offering under an open framework throughout its lifespan also gives you access to new and emerging technologies and services as they are developed, rather than having to wait for a closed framework to be renewed. This helps you buy more effectively in fast-changing markets such as AI technology, where innovations and developments are regularly occurring, and access more up-to-date and varied products and services. 

These opening windows can also allow new and existing suppliers the chance to offer more competitive pricing on their offering in line with the development of the market, meaning you can get more value for money in your procurements. 

Each stage of an open framework will also operate on the same terms and conditions as the one before it. This means the way any open framework works and the way you buy through it will not significantly change, if at all, throughout its lifetime, ensuring a consistent and compliant buying process.

Will closed frameworks still be used?

Both open and closed frameworks will continue to be used by CCS as we develop new commercial agreements. The type of framework will be decided upon by experienced commercial experts who will understand which type of framework will be most beneficial to you. This will be done during the planning stages of building a new agreement and buyers will be given the opportunity to provide their insights during preliminary market engagement.

An open framework may not always be the best choice for a new commercial agreement. For example, in markets where there are not many suppliers or little diversification of suppliers, it may be better to opt for a 4-year closed framework as it is unlikely there will be much change to the suppliers or offering at any opening point. 

All stages of an open framework operating on substantially the same terms could also mean, in a fast-changing market, these terms become limiting to buyers during the framework’s lifespan as they do not account for new developments. A shorter closed agreement enables the terms of a framework to be adapted sooner in order to keep up.

Where open frameworks can provide maximum value to you as a public sector buyer, such as by saving the public sector money or allowing for more ambitious procurements, they will be considered as we continue to develop new routes to market to allow you to buy what you need.

Find out more

Buyers and suppliers can find out more information about the Procurement Act by visiting our dedicated webpage.

Find all of our other Procurement Essentials articles in one place on our website.