SDD is similar to an electronic framework agreement with two exceptions: what is a dynamic purchasing system and how does it compare to a traditional framework agreement? The DPS on Minor Works and Maintenance is a new agreement accessible to NHS Trusts and wider public sector organisations, covering both a wide range of categories of works and maintenance services related to construction and construction. While there is no single measure of what would represent “large quantities of suppliers” or “large volumes of transactions”, it is reasonable to expect that if the required services are to benefit from multiple providers, the “large” ones will be more than 20 suppliers. Below this number, other options may provide more suitable alternatives, such as. B the possibility of setting up several supplier frameworks. The volume of transactions would certainly amount to hundreds and more per year, without the possibility of consolidating the service provided and/or limiting the resulting individual transactions. DPS systems have their place and there are categories and products for which a DPS would be perfect. Markets with a high pace of change, commodities with a high or less complex trading volume can benefit greatly. However, if you have complex goods or services such as outsourced cleaning and catering services, you may decide that the benefits of a traditional framework agreement make it a more suitable supply vehicle due to the additional review by the PSBO at the listed suppliers. Total planned spending is also a key factor in ensuring that the associated effort achieves the expected benefits of a DPS agreement. While there is no number defined in “what constitutes large quantities of suppliers/transactions”, there are also no minimum expenditures per year.
However, it should be noted that with less effort, the effort required to implement a DPS may not pay for the planned services. The flexibility to keep a DPS agreement open to new entities allows public sector bodies to promote possible “competitive bidding” under the DPS in their geographic region. This provides an opportunity to work with potential local suppliers and supports the government`s broader goals of working with local businesses for economic growth. Ultimately, the procurement vehicle should be chosen taking into account what is being purchased and the specific needs of the contracting authority. And for suppliers, our advice is to carefully evaluate all the opportunities that come out of it. A new path to market can quickly become the backbone of your business success, so don`t rule out a DPS or executive until you`ve completed your due diligence. The resources required to set it up and then operate MAy as usual require significant resources in the facility which is only set up when there are large volumes of suppliers, but this can be less resource intensive than setting up a framework contract. If a category of expenses did not lack suppliers and your evaluation criteria are complete (to make sure you name the right contractor), a framework agreement may be the most appropriate way to market. Outsourced cleaning services are a good example of how a framework agreement would provide you with a known number of suppliers.
The manageable number of suppliers allows for competition, which ensures that your evaluation team`s efforts are focused on evaluating suppliers who have gone through a more robust process to arrive at a framework than those who have simply been appointed to a DPS. As a procurement tool, it has certain aspects that are similar to those of a framework agreement. However, it is an electronic process in which opportunities are challenged through on-demand competitions. There is no limit to the number of providers that can be on the DPS and providers have the option to apply to join at any time. .