A Collaborative Framework & DPS Approach

The Importance of SMEs

The UK government follow the EU’s definition of Small to Medium Sized Enterprises (SMEs); a business with fewer than 250 employees and a turnover of less than €50 million (approximately £45 million). The government aims to increase its spending with SMEs to 33% by 2020.

We are proud to say that SMEs currently make up 99% of the EEM service supply chain

Benefits of using SMEs

Using SMEs helps public sector organisations comply with The Public Service (Social Value) Act which requires that regard is given to economic, social and environmental well-being in connection with public services contracts.
SMEs are an integral part of the communities in which they live and work. They may sponsor local sports teams, donate to local schools and charities, participate in community events or provide training at local schools or business centres.
Small firms are responsible for the majority of apprenticeship training in the construction industry as well as creating local employment opportunities.
Supporting SMEs as they expand boosts local economies and provides increased employment opportunities for local people.
Local firms understand where to source local materials and are not required to travel long distances, meaning that there are both economic and environmental benefits to be gained from using smaller, local businesses.
Shorter decision-making chains and access to directors and highly experienced senior team members creates a greater level of accountability which in turn should lead to a better service for the client.
Profits made by SMEs without external shareholders can more easily be reinvested into the workforce, processes and products that deliver value to clients.

Problems that SMEs can face when trying to secure contracts in the public secure:

Many SMEs do not have sufficient resources to complete tender documentation that is made more time-consuming by being lengthy, complicated or poorly written.
If public sector organisations do not advertise their opportunities on centralised sites such as Contracts Finder, it can be difficult and time consuming for SMEs to find contract opportunities.
Public sector spending cuts and reduced spend in many areas has resulted in a general reduction in contracts.
Budget cuts may encourage public sector organisations to ‘bundle’ their contracts thus potentially excluding SMEs who cannot undertake all required work streams or volumes.
Frameworks or contracts may not be broken down into geographical regions meaning that only larger, national companies may be capable of undertaking the works.
Scopes of works within frameworks and contracts may be too vast and SMEs may be limited to specialist services or products relevant to only one part of a contract.
Frameworks or contracts may demand suppliers to have a financial turnover thresholds that are too high for SMEs to meet. Public sector organisations may be overly cautious when assessing a firm’s capacity to deliver in terms of its annual turnover.
SMEs are less likely to have the financial capacity to absorb payment delays which are more common when working as a sub-contractor

How does EEM support SMEs?

In the creation of our frameworks

We invested in a Dynamic Purchasing System (DPS) which benefits SMEs by having a simplified application process and hosting smaller opportunities.
Where possible we divide the majority of our tender opportunities into work stream categories, value bandings and geographical locations to provide more opportunities for SMEs to tender and succeed
We give careful regard to SMEs when creating the minimum requirements within our tender documentation. We set no minimum employee count and our minimum financial turnover thresholds are usually double the average value of similar previous contracts awarded.
We issue Prior Information Notices (PINs) for our framework opportunities well in advance of our Contract Notices to give as much notice as possible to tenderers so they can plan their time effectively.
We encourage our members to give reasonable timescales when issuing mini-competitions to allow SMEs adequate time for completion of documentation.
We run Supplier Engagement Days to provide guidance on our tender processes and specifications with plenty of opportunities to ask our experienced procurement team any questions.
Our Procurement Team is always available to advise on the most suitable opportunities for an SME.

During our tender processes

All of our opportunities are clearly advertised on Contracts Finder and TED as well as regional sites such as Source East Midlands etc
Within each of our tender opportunities we provide guidance information such as how to complete the application, details of the evaluation process, how to raise queries or clarifications and information about the EEM model and our members. (Briefing pack?)
In our tender processes we use the Selection Questionnaire (SQ) issued by Crown Commercial Service (CCS) in 2016 to provide SMEs with standardised and familiar documentation.
We use an easy to navigate procurement portal called Xantive which has a phone helpline to assist with any registration or usage queries.
We welcome any queries or clarifications from our tenderers which should be submitted via our Xantive portal during the tender period for transparency.
After the evaluation of tender responses, whether it be for a framework, DPS or mini-compeition, we always give feedback on applications to assist with future bids.

Benefits to an SME of being on an EEM framework or DPS

Once a supplier is awarded a place on a framework there is no need to repeat the same documentation for each contract opportunity.
As an alternative to a framework, suppliers are able to join one of our Dynamic Purchasing Systems (DPS). The application for a DPS is furthermore simplified with a basic application process and then more thorough documentation required at the call-off stage. See the FAQ section for the difference between a framework and a DPS.