Considerations in choosing appropriate frameworks or Dynamic Purchasing System (DPS)

Dynamic purchasing systems (DPS) have been replaced by Dynamic markets (DM) in the Procurement Act 2023. The principles here still apply to Dynamic markets as to dynamic purchasing systems.

There are a proliferation of frameworks and dynamic purchasing systems (DPS) available to local authorities in the development and delivery of smart local energy systems, but how do you know which is the right one to deliver against your council’s ambitions? Below are a number of areas to consider before deciding which frameworks or DPS might be suitable for your energy project.

Councils should commit sufficient time and resource to carry out thorough due diligence on any framework or DPS they intend to use.

✅ Does the framework agreement or DPS scope cover your entire requirement?

✅ What is the framework agreement or DPS expiration date?

✅ What are the call-off methods for the framework agreement in questions?

✅ Who owns the framework agreement or DPS and how robust are they?

✅ Do the framework agreement or DPS terms and conditions allow you to contract in your preferred manner?

✅ What support will be provided?

✅ How well is the framework agreement or DPS managed?

✅ How much will the framework agreement or DPS owner/support partner get paid either directly or indirectly for their support and use of the framework?

✅ Is your selection of a framework/support partner compliant with public procurement rules?

✅ Is your selection of a framework/support partner compliant with your organisation's procurement rules?

Does the framework agreement or DPS scope cover your entire requirement?

Any framework or DPS will be limited in what services or products it can offer. Potential users should be clear about what they are looking to procure and should carry out a robust assessment of whether a chosen framework can provide it. There may be opportunities to change project scope or use multiple frameworks to deliver, although these choices will obviously impact the project.

What is the framework agreement or DPS expiration date?

Frameworks have end dates. There are no restrictions on how long DPS can run, but it will be important to review any potential validity period. Aligning a project’s procurement needs with the active period of a framework and its terms of use is vital. Risks of delays or slippage within the project should also be considered when assessing this.

What are the call-off methods for the framework agreement in questions?

How can you use the framework agreement or DPS? Does the method of call-off/mini tender/selection align with your project’s timescales and needs?

Who owns the framework agreement or DPS and how robust are they?

Potential users should assess the framework owner, for example how financially robust are they (balance sheet)? Who are they owned by? Do they have shareholders?

Do the framework agreement or DPS terms and conditions allow you to contract in your preferred manner?

A local authority should consider things such as contract types available (design and build etc), the ability to incorporate finance from a contractor or the ability to allow for areas such as innovation and social value.

What support will be provided?

How much of the procurement process is managed or supported by the framework operator? This may impact the capacity or capability required within the project team. It may also affect timescales for procurement. Does the framework provide support for building your evaluation criteria, for example?

How well is the framework agreement or DPS managed?

Some frameworks are owned but not managed. Those that are managed may be under capacity constraint. This may impact both procurement timelines and quality of responses (for example, what support services are available? What processes are in place to manage and remove providers? What are the escalation procedures?)

How much will the framework agreement or DPS owner/support partner get paid either directly or indirectly for their support and use of the framework?

The cost of procurement will need to be included in the project budget. It is also important to compare and contrast what you are receiving for any fee. Does this reflect access to the framework or associated support services? How do these compare with your capacity/ capability requirements?

Is your selection of a framework/support partner compliant with public procurement rules?

Does the framework agreement or DPS align with public procurement rules? This should be the case as frameworks are set up to enable public procurement, but it is always better to be sure as the liability for breaking procurement rules may lie with the project procurement team.

Is your selection of a framework/support partner compliant with your organisation's procurement rules?

Do your own procurement rules allow using a particular framework agreement or DPS? Has your procurement strategy been determined/ reviewed alongside your internal/outsourced procurement teams?