Framework agreement
Ensuring the Best Result
Government Procurement Service Liquid Fuel service was the subject of a collaborative procurement exercise undertaken in conjunction with NHS PASA and tendered under full compliance with OJEU regulations.
Category management principles were applied to the procurement. The framework commenced on 1 October 2010 and runs until the end of March 2013.
Government Procurement Service acts as a conduit to compete your initial requirements, working with you to understand them, using standard templates and then issuing them to suppliers on our framework.
Once suppliers submit a margin, we run this through a dedicated liquid fuels procurement Management Information (MI) system to ensure the best result. This takes account of the myriad factors that contribute to the end price.
With your agreement, the winning bid is then fixed for a given duration (usually two years). Margins are typically less than 3% of the total bill and cover delivery, administration and financing. They are fixed within the life of the framework.
Typically, prices change daily, but we have been able to agree a weekly lagged pricing mechanism with our suppliers. We monitor prices and provide you with weekly updates – specific to your organisation through electronic means.
This approach has numerous benefits, including assurance of supplier pricing accuracy, the ability to match purchase orders against invoices (reducing your administrative burden), and the ability to reduce maverick spend.
Further benefits:
- A dedicated customer service team who will look after your account
- Weekly price notifications, so you know your supplier is charging the right amount
- National tendering to gain better coverage and competitive margins for the whole of the UK
- Query resolution
- Further Competition and award for existing and new customers
- Contract and Supplier Management.