Neutral Vendor for ICT Procurement

Framework agreement

Description

EEM is seeking to set up a framework arrangement with a single provider capable of operating a large-scale, neutral ICT procurement and supply chain management function across the full scope of this Framework Agreement. This procurement will establish a single-supplier framework, in accordance with Section 45(4)(a) of the Procurement Act 2023. EEM has concluded, based on market analysis, statutory considerations and PME feedback, that a single neutral vendor is the only proportionate and effective model capable of delivering the full scope of ICT requirements defined in this document. This approach is justified on the following grounds: A. Interoperability and Whole-ICT Lifecycle Integration ICT procurement across the public sector is currently fragmented. Complex interdependencies between hardware, licensing, cloud consumption, cybersecurity, networks and managed services require a single entity to coordinate supply, ensure compatibility, and provide end-to-end assurance. A multi-supplier framework would not achieve these outcomes, and would increase the risk of: • conflicting supplier commercial incentives • inconsistent technical standards • fragmented support arrangements B. Transparency and Spend Control Public bodies consistently reported that pricing for software licensing, cloud consumption, and associated services is often opaque and difficult to benchmark. The single-supplier Neutral Vendor model is required to: • eliminate hidden margins and bundled charges • ensure transparent, open-book pricing • provide uniform reporting and governance • support PA23 transparency duties under Sections 69-95 C. Aggregation and Economies of Scale A single supplier is required to centralise: • demand aggregation • volume discounting • supply chain optimisation • consolidated OEM negotiation These benefits cannot be achieved with a multi-provider arrangement. D. SME Enablement and Fair Access Evidence from Preliminary Market Engagement confirmed that SMEs find it difficult to engage directly with large ICT procurements. A neutral vendor enables: • structured and fair onboarding • transparent subcontracting workflows • increased SME participation • elimination of reseller-dominated routes This directly supports government objectives on SME inclusion. E. Risk Management and Compliance The Neutral Vendor model mitigates: • inconsistent supplier compliance • unmanaged subcontracting • variable licensing and cybersecurity standards By providing a single accountable entity, the model supports: • compliance with the Procurement Act 2023 • Cyber Essentials/ISO 27001 assurance Based on PME responses, market analysis and the statutory requirements of the Procurement Act 2023, a single neutral vendor framework is considered the only proportionate and effective commercial structure capable of delivering the scope of this Framework Agreement. This Framework does not establish a traditional ICT reseller or managed service delivery model. The appointed supplier must operate as a neutral procurement intermediary, with all sourcing decisions made transparently and without bias towards any proprietary or internally delivered services. The Neutral Vendor will act as the sole contracting entity for all purchases under the Framework, with all supply chain arrangements managed on a back-to-back basis. The objectives of the framework are: Objective 0: Provide an outsourced ICT procurement function delivering compliant sourcing, commercial governance, benchmarking and transparent access to the ICT supply market. Objective 1: Provide a comprehensive range of ICT products and services, including niche suppliers, enabling public sector buyers to procure the latest technology solutions. Objective 2: Ensure competitive pricing through transparent cost structures and negotiated discounts, offering value for money for public sector bodies. Objective 3: Facilitate the redistribution of vendor incentives (e.g., rebates, kickbacks) back to the Buyer in a fair, transparent, and legally compliant manner. Objective 4: Offer flexible and scalable ICT solutions, ensuring buyers can select the most appropriate technology to meet their needs. Objective 5: Ensure all products and services comply with relevant standards and regulations, including the Procurement Act 2023, NHS standards, and sector-specific compliance requirements. The scope of this procurement is for the providers of ICT goods and services. The themes, product and services are set out in the Scope and Specification section of this document. EEM considers this framework will help: • enable EEM members, whether existing or future, and the wider public sector to procure services provided by ICT providers in an efficient and compliant way. • provide access to a vetted list of suppliers, reducing the le and effort needed to conduct individual procurements. • ensure that all purchases meet legal and regulatory requirements, such as the Procurement Act 2023. • provide better value to the buyer by creating a fairer and more efficient supply chain, whilst consolidating purchasing power to negotiate better pricing and terms. • provide clear, pre-negotiated pricing structures, enabling buyers to achieve greater value for money. • provide diverse ICT needs, including hardware, software, services, and niche products, allowing buyers to source everything from a single framework. • ensure access to cutting-edge and specialised technology, such as IoT solutions and green ICT initiatives. • allows buyers to better scale their ICT purchases in line with changing requirements, from small upgrades to large-scale projects. • Encourages greater innovation and quality by providing access to innovative products and services, including from niche vendors, ensuring buyers can procure the latest technology. • promoting competition among suppliers, driving higher quality standards. • Reducing procurement risks by offering contracts with established suppliers that adhere to framework terms and conditions.

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