Procurement and bidding for contracts

As we are subject to the EU Procurement Directives, we have a number of EU compliant framework agreements that we use to procure a large amount of what we require. The EU Procurement Directives were introduced to open up the public procurement market in the EU to ensure free movement of goods, services and works.

The framework agreements provide an efficient route to market, ensure suppliers are pre-vetted and remove the need to negotiate on terms and conditions of each purchase. All of our framework agreements are advertised in the Official Journal of the European Union.

If our own frameworks can’t meet our needs then we look at other routes to market. These include pan-government framework agreements, such as those set up by the Government Procurement Service, or advertising our requirements on Contracts Finder.

Ofgem views sole traders and small and medium-sized enterprises (SME) as a valuable resource in delivering its strategic aims and is keen to encourage them to bid for its work wherever possible. 

What we buy

We buy a range of goods and services including the following:

• Economic consultancy (e.g. market studies, auditing, corporate finance advice)
• Engineering consultancy (e.g. technical auditing, engineering costs reports)
• Legal services
• Market research
• IT services, hardware and consultancy.

How we buy

Our main route for procuring goods and services is a range of framework agreements. Details of Ofgem’s frameworks and supplier lists are set out at each of the links; economic consultancy; engineering consultancy and legal services. We already have a number of sole traders and SMEs on our framework agreements but where a supplier is not listed, they have the option of sub-contracting to supply goods and services to Ofgem. We also use framework agreements that have been created on behalf of the wider public sector, for example CCS’s Market Research Framework.

Where there isn’t a suitable framework agreement, Ofgem seeks to advertise its requirements to the market using Contracts Finder and MyTenders. The website lists all current opportunities and contains details of how suppliers can register and bid for work.

Sustainable procurement

We recognise our responsibility to the environment and where possible seek to demonstrate this through our purchasing activities. In August 2010 we achieved the Gold Level standard of the Mayor of London’s Green Procurement Code and we continually search for ways in which we can buy sustainably.

CIPS certification

We achieved the Chartered Institute of Purchasing and Supply (CIPS) certification and the Standard of Excellence in March 2010. This is the recognised global accreditation for achieving procurement excellence through an organisation's procurement and supply chain policies, procedures and strategies.

We were the first UK Regulatory Body to achieve CIPS certification and it independently benchmarks us against best in class and meets ISO 9001:2000 purchasing requirements. We now have peer group recognition from our stakeholders and this Standard will set the foundation stone for further and continuous improvement. We maintain high ethical standards and deploy robust, fair and transparent procurement processes.

Framework agreements

Our most commonly used framework agreements are our economic, legal and technical framework agreements. Sourcing lists for each framework agreement can be found below.