Utilities Procurement Regulations are also known as the Utilities Contracts Regulations or UCRs. They are the principal procurement rules governing utilities in the UK. The regulations were created in order to help ensure general principles of transparency in the procurement process for utilities.
They’re used to establish equal treatment and non-discrimination ensuring that all tenders are assessed creating a fair and competitive process. UCRs create a more level playing field, allowing SMEs to get involved in tendering in the public sector. The Government have pledged to spend £1 in every £3 with SMEs by 2022. This means the public sector is actively looking to work with smaller businesses.
Utilities Procurement Regulations apply where the following three conditions are satisfied when the:
The entities that are covered by the Utilities Procurement Regulations are defined as ‘utilities’ and must be:
Including public bodies tasked with performing public functions such as local authorities.
Over which contracting authorities may directly or indirectly exercise a dominant influence. They could do this by virtue of their ownership or financial participation or governing rules.
Deriving from authorisations granted by the State. For example, authorisations or licences to operate a gas or water network.
Utility activities in the UK are contained in the UCRs. They can be summarised as covering:
The UCRs apply to the following contracts:
The contracts that the regulations apply to are fairly similar to the public sector regulations (PCR) 2015. The Utilities Procurement Regulations provide greater flexibility for utilities being more market-orientated. Therefore, they’re less likely to be influenced by ‘buy national’ circumstance when procuring works, supplies and services.
The UCRs only apply to the award of works, supplies and service contracts relating to the relevant utility activity. They allow utilities to choose freely between prescribed contract award procedures. Moreover, they give utilities greater freedom to use framework agreements now they have become more regulated. The PCRs stipulate that there’s a four-year maximum term for a framework. Whereas under the UCRs, a utilities framework can have a maximum of eight years.
A framework agreement is a multi-supplier agreement used by the public sector to procure a range of goods and services. They are frequently used within the utilities sector. The length of a framework can vary from a few months, but utilities frameworks more often run for years. Due to this, securing a place on a framework agreement can be a lucrative opportunity for your business.
Framework agreements are split into different lots. Each lot can either be a specific good, service, work or geographical location. They allow suppliers to apply to be part of a wider contract without needing to supply all areas. The number of suppliers for each lot varies and can be anything from four suppliers for one lot to ten. Suppliers need only apply for the specific lot[s] they specialise in.
Depending on the buyer, suppliers may be able to bid on any or all of the framework lots available. This will be stated within the tender documents and tender specification released by the buyer. If this is an option, a supplier must be able to demonstrate that they’re able to undertake all works. They must have the appropriate capacity and resources to undertake the works across all selected respective lots.
Utilities Procurement Regulations provide for six main contract awards tender procedures:
Under the Utilities Procurement Regulations, all contracts must now be awarded to the most economically advantageous tender (MEAT). A MEAT takes on a cost-effectiveness approach and could be based on price or cost alone. It could also be evaluated by a best price-quality ratio.
A MEAT can consider the following aspects of a tender:
You may not always have the experience, time or resources in-house to write a winning tender response. If you’re interested in a current framework agreement or utilities DPS but don’t know where to start, we can help. Outsourcing to tender writing experts can help you win your next tender, securing a pipeline of work for your business.
Our sister company Hudson Succeed, have over 60 years of bid writing experience and an 87% success rate. They offer four bid writing support services that can help you win more utilities tenders. Whether you’ve never tendered before or need your response proofread before you submit – we can help.
Once you’ve found the perfect utilities tender for your business, why not send it over to us? Our Bid Writers can take care of it all for you. They’ll let you know what they need from you, providing you with a full Tender Writing breakdown. They’ll even submit it on your behalf.
Our Tender Ready programme is perfect for those who have never tendered before. A Bid Writer will work with you to make sure you have everything you need in place to tender successfully. The 4-week programme offers your business:
If you’ve been tendering but aren’t seeing the results you want, our Tender Improvement package can help. The Bid Team will assess your previous responses and tender documents, working with you to improve for future submissions. This package includes a 12-month subscription to Facilities Tenders and additional tendering development services.
If you’ve written your own tender response and need someone to double-check it for errors, Tender Mentor can help. Our Bid Team will proofread your work for any inconsistencies, grammar or spelling mistakes. They’ll also ensure that it’s in line with the specification before you submit.
Utilities Framework
Exceeding Limited- East Midlands- Budget: £1,500,000
Market Engagement Event in relation to LB Hackney’s Zero Carbon Electricity Power Purchase Agreement(s)
London Borough of Hackney- London- Budget: Undisclosed
Supply of Electric/Gas Meter Covers
Sandwell Metropolitan Borough Council- West Midlands- Budget: Undisclosed
Contract for the Provision of a Fully Managed Service for Energy Supply (Gas and Electric)
Cheshire East Borough Council- North West- Budget: £6,000,000
Plot N24 Electricity Installation (Hereford Enterprise Zone)
Herefordshire Council- West Midlands- Budget: Undisclosed
We also track opportunities for the following sub-sectors:
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The Ultimate Time Saver package offers your business:
The Become a Pre-Bid Master package offers your business:
Contact us to find out how we can help your business grow.