Mini Competitions Under Framework Agreements: What You Need to Know
Framework agreements have become increasingly popular among organizations looking to simplify and streamline their procurement processes. By establishing a framework agreement with a supplier, businesses can pre-determine the terms and conditions for future purchases, reducing the need for repetitive and time-consuming procurement activities.
However, while framework agreements can offer significant benefits, they can also limit competition. This is where mini competitions come in.
What are Mini Competitions?
A mini competition is a procurement exercise that takes place between suppliers who have already been pre-selected under a framework agreement. It allows buyers to choose the most suitable supplier for a specific requirement, based on the terms and conditions established within the framework.
The mini competition process typically requires suppliers to submit a bid for the specific requirement, which is then evaluated against pre-determined criteria. The winning supplier is then awarded the contract for that particular requirement.
Why Use Mini Competitions?
Mini competitions are an effective way to ensure that suppliers are selected based on their ability to meet specific requirements, rather than relying solely on the terms and conditions established within the framework agreement.
By allowing suppliers to compete for individual contracts, buyers can ensure that they are getting the best value for money and accessing the latest innovations in their industry.
Mini competitions also promote fair competition and can help to eliminate any concerns around limited competition under framework agreements. By giving suppliers the opportunity to compete for individual contracts, buyers can ensure that they are not overly reliant on any single supplier and that prices remain competitive.
How to Run a Mini Competition
Running a mini competition is a straightforward process, but it is important to follow the rules and guidelines established within the framework agreement.
The process typically involves the following steps:
1. Define the requirement – Clearly define the requirement and any specific criteria that must be met by the winning supplier.
2. Invite bids – Invite bids from all suppliers who are pre-selected under the framework agreement.
3. Evaluate bids – Evaluate each bid against the specific criteria established for the requirement.
4. Award the contract – Award the contract to the winning supplier.
5. Monitor performance – Monitor the performance of the supplier and ensure that they are meeting the terms and conditions established within the framework agreement.
Conclusion
Mini competitions under framework agreements offer a flexible and effective way for buyers to select the most suitable supplier for specific requirements. By promoting fair competition and ensuring that suppliers are selected based on their ability to meet specific criteria, mini competitions can help to drive value and innovation within procurement processes.
However, it is important to follow the rules and guidelines established within the framework agreement and to ensure that suppliers are selected in a fair and transparent manner. By doing so, buyers can benefit from the advantages of both framework agreements and mini competitions.