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Types of Public Sector Procurement

Due to the wide range of requirements of the public sector there is a variety of procurement methods and types.

Some of these are:

  • Open procedure: With the open procedure method the tender opportunity is advertised for a specific piece of work/product and businesses who are interested must submit a tender by a set date; this process requires businesses to provide a range of answers and information in their submission. The submissions are evaluated and ranked using set criteria and the contract is awarded based on this evaluation.
  • Restricted procedure: With the restricted procedure method, there are usually two stages. The first stage involves the public sector organisation compiling a shortlist of providers identified by a pre-qualification questionnaire (PQQ). The second stage then replicates the open procedure, with shortlisted businesses submitting bids.
  • Framework: With the framework method the public sector organisation selects a series of suppliers for a set time period to deliver a certain service. As there are numerous suppliers on a framework then there is no guarantee of work. To set up a framework, the public sector organisation has to go through a full tender process to select suppliers and the framework agreement made will set terms and prices for a period in advance, with the public sector organisation commissioning work with the suppliers on the framework as required.

The different methods used will depend on the type of public sector organisation, the value of the project and the timescales of the project. 

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