Framework for the provision of minor works across the Ministry of Justice
A framework was designed to allow SMEs to provide minor works across the MoJ.
Case study
Name of company:
- A & F Pilbeam Construction Ltd
- Ark Build plc
- Bramber Construction Ltd
- Brightwater Products & Services Ltd
- Coniston ltd
- Cuttle Construction Ltd
- David R White Building Services Ltd
- E V Bullen & Son Ltd
- Fairhurst Ward Abbotts Ltd
- Garside & Laycock Ltd
- Hall Construction Group Ltd John Weaver (Contractors ) Ltd
- Knox & Wells Ltd Manchester & Cheshire Construction Ltd
- Pentaco Construction Ltd
- Pexhurst Services Ltd
- Princebuild Ltd R & M Williams Ltd
- Ravenstone (Central) Ltd
- Robert Bruce Construction Ltd
- Roger Eaves Building Ltd
- Shaylor Construction Ltd
- Sitec Interiors Ltd
- Smallman & Son Ltd
- Tate Security Technology Ltd
- Taylor Pearson Construction Ltd
- Vinstrata Builders (London) Ltd
- W. B. Griffiths & Sons Ltd
Contract title:
Ministry of Justice (MoJ) minor works framework contract.
Brief company details:
British SME classifications as follows:
- 5 x Micro (turnover under £1.8m)
- 14 x Small (turnover 1.8m - £9m)
- 9 x Medium (turnover £9m - £24m)
Contract summary and highlights:
The Ministry of Justice (MoJ) has traditionally procured a large percentage of minor works through SMEs. The decision was taken to introduce a framework, which would qualify construction companies as able to meet MoJ’s requirements thereby reducing the administrative burden on suppliers and delivering best value for money.
Evaluation questions were designed with ‘signposts’ so that bidders could easily identify what MoJ Procurement required from responses to give an ‘acceptable’ score and achieve a place on the framework. Market engagement days were held in locations across the country, these focused on enabling bidders to obtain information about the MoJ and tender procedures, any improvements to the procedures that could be made to reduce administrative burden and communicating exactly what was required of bidders in submitting responses to tender questions.
Within the competition many SME bidders demonstrated considerable expertise in meeting the MoJ requirement for minor works, currently 64% of framework contractors are SMEs.
Did publishing the procurement pipeline result in an increase in SME participation?
No pipeline was published, the framework was procured before the requirement was introduced.
Did pre market engagement occur, and if so what impact did it have on the procurement strategy? Were SMEs involved in the pre market engagement?
Pre-procurement market engagement was not undertaken prior to the procurement strategy being approved, however market engagement events were held with bidders at the Invitation to Tender stage (ITT).
Feedback from bidders in relation to the tender and contract procedures were received and acted upon where possible.
Example: The direct award call off process is built around the National Schedule of Rates, which are published every August. The expectation was that contractors would purchase these rates each August and work from the latest copy. Bidders expressed concerns at the cost of purchasing new rates each year, so the contract was amended to use 09/10 rates throughout its duration. Suppliers now have the option to amend their discount against these rates each November.
How did we make the decision on the optimal lot size? Were SME views taken into account?
No limit was placed on the number of bidders awarded to each lot so that the maximum supply base in terms of SMEs could be achieved. As a result, 64% of framework contractors are SMEs.
Were tangible savings delivered as consequence of SME involvement/re view of lot size?
No tangible savings directly related to SME involvement. However, the framework consistently delivers reductions of 15-20% on pre-tender estimates: in the financial year 2012-13 55% of contracts were awarded to SMEs based upon value for money provided compared to non-SMEs.