Successful Public Sector Tenders and Grants
Frameworks are an increasingly important route into public-sector work.
Councils and other public-sector organisations use frameworks to purchase goods, works and services without necessarily returning to the whole market every time they need to award a contract.
For SMEs, that can create a significant commercial opportunity.
Once you’re successfully appointed to a framework, future opportunities awarded through it are restricted according to the framework’s rules. Where a call-off competition is used, you may be competing against the relevant suppliers appointed to the framework or lot — rather than the wider market.
But there’s an important catch.
Getting onto a framework doesn’t mean you’ve won any work.
A framework gives you a route to potential contracts. Turning that access into profitable revenue requires a strategy.
So before investing time and money in an application, ask:
Is this actually a framework worth being on?
Why Frameworks Should Be Part of Your Public-Sector Strategy
Frameworks are an established way for public-sector organisations, including councils, to procure services.
For suppliers, one of their biggest attractions is the potential to create a more restricted competitive environment for future opportunities.
Imagine regularly competing in the open market against dozens of potential suppliers.
Now imagine being appointed to a framework lot with eight.
For relevant competitive call-offs, you’re now operating within that framework’s approved supplier pool.
That’s potentially a much stronger position.
Frameworks can also run for several years, creating an established route through which participating buyers can purchase your services.
For an SME planning to grow its public-sector revenue, identifying the right frameworks can therefore be just as important as monitoring individual tenders.
A Framework Place Doesn’t Automatically Produce Revenue
This is where businesses sometimes get frameworks wrong.
They spend significant time preparing the application.
They win a place.
They announce it on LinkedIn.
They add the framework to their website.
Then they wait for work to arrive.
But appointment doesn’t necessarily guarantee any spend.
Depending on how the framework operates, buyers may award contracts through competitive call-offs or other mechanisms permitted by the framework.
That’s why we encourage businesses to think commercially before bidding.
Don’t just ask:
“Can we get onto this framework?”
Ask:
“If we get onto it, how are we going to generate revenue from it?”
Look Beyond the Headline Framework Value
A £100 million framework sounds considerably more attractive than a £10 million framework.
But that doesn’t necessarily make it better for your business.
Headline framework values can cover multiple years, geographical areas, services, lots and suppliers.
Your realistic opportunity may be a small proportion of the total.
Before deciding to bid, consider:
- Which lot is relevant to you?
- What is the likely value of that lot?
- How many suppliers will be appointed?
- What are typical call-off values?
- Which buyers are expected to use it?
- How frequently might they purchase?
- How long will the framework operate?
What matters isn’t simply the total framework value.
It’s the realistic revenue opportunity for your business.
Make Sure the Buyers Fit Your Growth Strategy
Next, look at who can actually use the framework.
Are they organisations you want as customers?
Depending on the framework, this might include councils, NHS organisations, housing providers, government departments, education organisations or other public bodies.
Ask:
- Do these buyers purchase our services?
- Are they within our delivery area?
- Do the likely contract sizes suit us?
- Do we have relevant experience?
- Can we demonstrate results with similar customers?
- Are these organisations part of our target market?
A smaller framework containing buyers you actively want to work with can be much more commercially valuable than a huge national framework that doesn’t align with your business.
Framework strategy should support your growth strategy — not distract from it.
Understand Who You’ll Be Competing Against
One of the potential benefits of securing a framework place is that you’re no longer necessarily facing the whole market for work subsequently awarded through it.
But you still need to understand the supplier pool.
Look at:
- Number of suppliers being appointed
- Number of suppliers on your lot
- Existing or likely incumbents
- National versus regional competitors
- SME participation
- Geographical structure
- Your potential differentiators
Consider two frameworks.
One appoints 40 suppliers to a national lot.
Another appoints six suppliers to a regional lot closely aligned with your existing delivery capability.
The first might have the bigger headline value.
The second might give you a much stronger opportunity to compete.
Bigger doesn’t always mean better.
Look for the Warning Signs
Some frameworks look attractive until you examine how they’re likely to work commercially.
Warning signs can include:
Too Many Suppliers
If a large number of businesses are appointed to the same lot, consider how much competitive advantage the framework really gives you.
No Guaranteed Spend
A place on the framework doesn’t automatically mean contracts will follow.
Your revenue forecast shouldn’t assume otherwise.
Poor Buyer Fit
If the likely users aren’t organisations you genuinely want to sell to, why are you investing in the application?
Expensive Entry Requirements
Consider whether additional accreditations, insurance, certifications or bid costs are proportionate to the realistic revenue opportunity.
Unclear Call-Off Process
Understand what happens after appointment.
Will there be further competitions?
How much work will those responses require?
How are suppliers selected?
Little Evidence of Buyer Activity
Where possible, investigate how the framework or its predecessor has actually been used.
A framework can look impressive on paper.
It’s only commercially valuable if buyers actually use it.
Getting Onto the Framework Is Only Half the Strategy
Winning your place should be the beginning, not the end.
Once appointed, you need a call-off strategy.
That means understanding how you’re going to turn framework access into actual contracts.
Your plan could include:
- Identifying priority buyers
- Monitoring upcoming call-offs
- Understanding existing contracts and renewal dates
- Building relationships with relevant buyers where appropriate
- Preparing framework-specific evidence and case studies
- Setting Go / No-Go criteria for call-offs
- Tracking wins, losses and revenue
Think of your framework as a sales channel.
You wouldn’t launch a new sales channel and then simply wait for customers to appear.
The same principle applies here.
Don’t just get onto the framework. Have a plan to work it.
Start With a Framework Strategy Review
This is the thinking behind the Tender Response Framework Strategy Review.
Rather than simply identifying frameworks your business could apply for, we help you assess whether they’re commercially worth pursuing.
We consider areas such as:
- Target buyers
- Relevant lots
- Likely contract values
- Number and type of competitors
- Entry requirements
- Call-off mechanisms
- Resource implications
- Alignment with your growth strategy
- Commercial potential
The result is a clearer Go / No-Go decision before you commit valuable management and bid time.
Because sometimes the best framework decision is to walk away and concentrate your resources somewhere else.
Ready to Apply for a Framework?
Once you’ve identified a framework worth targeting, the next challenge is securing your place.
Tender Response also offers a fixed-price Framework Application service.
We support businesses through the application process, helping you understand the requirements, structure your submission and demonstrate your experience, evidence and proposition effectively.
Because the service is fixed-price, you know the cost of your framework application support before the work begins.
That makes it easier to compare the investment with the potential commercial value of securing a place.
Choose Frameworks for Revenue, Not Recognition
Being able to say you’re on ten frameworks might sound impressive.
But there’s a much more important number:
How much profitable revenue have those frameworks generated?
The strongest framework strategy isn’t about collecting appointments.
It’s about identifying the routes to market where your business has a credible opportunity to compete, win and grow.
So before starting your next framework application, ask:
Who are the buyers?
What could we realistically win?
Who will we compete against?
What will it cost us to get on?
And what are we going to do once we’re there?
If you can’t answer those questions, do the commercial thinking before you start writing.
The Tender Response Framework Strategy Review can help you decide which frameworks deserve your attention.
And when you’ve identified the right opportunity, our fixed-price Framework Application service can help you compete for your place.
Get in touch with Tender Response to find out more.
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