Tussell Index of UK Public Procurement. May 2017
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1 Tussell Index of UK Public Procurement Data as at: 9 August 2017 All data derived by Tussell from underlying procurement notices licensed from Contracts Finder and Tenders Electronic Daily under the Open Government Licence v2.0.
2 Upcoming Contract Opportunities
3 Expiring Services Contracts by Top 10 Sectors IT Business Services Education and Training Services Healthcare Construction Public Administration and Defence Services Transport Financial services Community and Social Services Research & Development Services 0M 100M 200M 300M 400M 500M 600M 700M 800M 900M IT continues to be the biggest sector by value of services contracts due to expire. 636 IT services contracts with an aggregate value of 954M are due to expire in the next 12 months - creating opportunities for buyers to re-tender and for suppliers to challenge incumbents. Expiring Services Contracts by Top 10 Sectors Table Award Volume IT M Business Services Education and Training Services Healthcare Construction Public Administration and Defence Services Transport Financial services Community and Social Services Research & Development Services M 583M 380M 209M 195M 173M 112M 50M 43M Tussell Index Page 3
4 Tenders
5 Macro Trends - Tender Volume and Value 50B Tender Volume Tender Value (High) May Tender Value (High) B Tender Value (High) 30B 20B Tender Volume 10B In May there were 2,045 tenders with an aggregate value of 55Bn (taking the high end of the tender value range). This is the highest monthly tender value since the start of This record was driven by a 25Bn tender from Places for People Group (45% of the total) and a 15Bn tender from the Crown Commercial Service (27% of the total). N.B. The tender value for has been adjusted from 45Bn to 25Bn after Genesis Housing Association re-published a 20Bn tender for "Aggregator Partner" which we have re-allocated from April to August. Tenders Summary Date Published Total Tender Volume 2,045 1,997 Total Tender Value (Low) Total Tender Value (High) Avg. Size of Tender (High) Total Framework Volume Framework as % of Total Volume Total Framework Value Framework as % of Total Value 2.4B 55.3B 27M % 46.8B 84.6% 2.9B 22.8B 11M % 13.1B 57.4% Tenders Trailing 6 Months from 30/04/2017 Avg. Monthly Tender Volume Avg. Monthly Tender Value (Low) Avg. Monthly Tender Value (High) Avg. Size of Tender (High) Avg. Monthly Framework Volume Framework as % of Total Volume Avg. Monthly Framework Value 2, B 23.2B 11M % 15.2B Framework as % of Total Value 65.6% Tussell Index Page 5
6 Tenders - Top 10 Buyers Chart 2017 Places for People Group Crown Commercial Service Hertfordshire County Council Scape Group Ltd NHS England - Greater Manchester Area Team Network Rail Infrastructure Limited Transport for London Metropolitan Police Genesis Housing Association Kingston upon Hull City Council 5B 10B 15B 20B 25B Tender Value (High) Tender Volume Top 10 Tenders 2017 Contracting Authority Contract Title Places for People Group Green Services Framework. Y Crown Commercial Service Public Sector Resourcing Y Hertfordshire County Council Creation of a New Property Delivery Model for Hertfordshire County Council. N Scape Group Ltd Scape Regional Construction Framework. Y Transport for London DLR Rolling Stock Replacement Project. N NHS England - Greater Manchester A.. NHS Framework Agreement for Branded Pharmaceuticals for London - Tranche B a.. Network Rail Infrastructure Limited Supply, Operation & Maintenance of On Track Machines. Y NHS England - Greater Manchester A.. NHS Framework Agreement for Proprietary Pharmaceuticals - South of England (Tra.. Network Rail Infrastructure Limited Rail Advertising Concession. N Genesis Housing Association DPS for Development and New Build Housing N Framework Contract Y Y 25,000M 15,000M 2,000M 1,380M 850M 711M 600M 556M 500M 500M Tenders By Contracting Authority Region % 0% 1% 0% 1% 4% 6% Contracting Authority Region East Midlands East of England 7% London North West Northern Ireland Scotland South East South West Wales West Midlands Yorkshire and the Humber 78% Tussell Index Page 6
7 Tender Value (High) 50B 40B 30B 20B Contracting Authority Other Housing Association NHS Local Government Central Government Tenders by Contracting Authority 10B In May Housing Associations accounted for 47% of total tender value vs the trailing 12-month average of 8%. This was driven by the 25Bn tender from Places for People Group. Tenders by Sector Tender Value (High) 50B 40B 30B 20B Sector Other Energy IT Business services 10B Healthcare Construction In May Other was the largest sector by value with 32Bn worth of tenders. This was driven by the 25Bn tender from Places for People Group in the Repair and Maintenance sector. Tussell Index Page 7
8 Supplier Awards
9 Macro Trends - Award Volume and Value 25B 20B Award Volume May 6K 5K 15B 10B 4K 3K Award Volume 2K 5B 1K 0K In May there were 4,215 supplier awards with an aggregate value of 13Bn. The total award value for May was 46% below the same month last year and 7% below the average for the last 12 months. The total award volume for May was 8% below the same month last year and 12% below the average for the last 12 months. May Awards Summary Date Awarded Total Award Volume 4,215 4,602 Total Avg. Size of Award Number of Distinct Suppliers Total Framework Volume Framework as % of Total Volume Total Framework Value Framework as % of Total Value Total SME Volume SMEs as % of Total Volume Total SME Value SMEs as % of Total Value Total Non-profit Volume Non-profits as % of Total Volume Total Non-profit Value Non-profits as % of Total Value 13.3B 3.1M 2,486 2, % 8.7B 65.8% 2, % 3.0B 22.5% % 224M 1.7% 24.0B 5.2M 2,835 1, % 18.0B 75.0% 2, % 1.8B 7.5% % 123M 0.5% Awards Trailing 6 Months from 30/04/2017 Avg. Monthly Award Volume 4,773 Avg. Monthly 13.3B Avg. Size of Award 2.8M Avg. Monthly Number of Distinct Suppliers 2,158 Avg. Monthly Framework Volume 1,962 Framework as % of Total Volume 41.1% Avg. Monthly Framework Value 7.1B Framework as % of Total Value 53.4% Avg. Monthly SME Volume 2,476 SMEs as % of Total Volume 51.9% Avg. Monthly SME Value 2.8B SMEs as % of Total Value 20.8% Avg. Monthly Non-profit Volume 296 Non-profits as % of Total Volume 6.2% Avg. Monthly Non-profit Value 536M Non-profits as % of Total Value 4.0% Tussell Index Page 9
10 Awards - Top 10 Buyers Crown Commercial Service Ministry of Defence LHC Building Components and Services Glasgow City Council Genesis Housing Association Scotland Excel Compliant Procurement Solutions Limited NHS Resolution London Universities Purchasing Consortium Department of Health 1B 2B 3B Award Volume Awards - Top 10 Suppliers CGI Babcock Integrated Technology Limited Mass Consultants Limited Portakabin Limited Wernick Buildings Limited Western Building Systems Ltd Mcavoy Group Limited - The Birmingham Community Healthcare NHS Trust MTX Contracts Limited University of Southampton 0M 200M 400M 600M 800M Award Volume Top 10 Contracts Contracting Authority Contract Title Crown Commercial Service Project Management and Full Design Team Services Y Glasgow City Council ICT Services and Transformation. N Genesis Housing Association Dynamic Purchasing System for Supplies of Water Gas and Electricity N LHC Building Components and Services Modular Buildings Y Scotland Excel Energy Efficiency Contractors. Y Crown Commercial Service G-Cloud 9 Y Compliant Procurement Solutions Limited CPS Tenant billing for domestic utilities. Y NHS Resolution Health-related Legal Services Y Ministry of Defence Framework Agreement for Technical Support / 5 (FATS/5) Y Ministry of Defence Marine Systems Support Partner N Framework Contract 2875M 800M 720M 700M 604M 600M 498M 480M 400M 334M Awards By Contracting Authority Region 13% 1% 1% 2% 3% 3% 2%2% 3% 29% 1% 39% Contracting Authority Region East Midlands East of England London North East North West Northern Ireland Scotland South East South West Wales West Midlands Yorkshire and the Humber Tussell Index Page 10
11 25B 20B Contracting Authority Other Housing Association NHS Local Government Central Government Awards by Contracting Authority 15B 10B 5B In May Central Government was the biggest public sector category with 5Bn of awards, accounting for 37% of total award value. This was driven by the 3Bn framework from the Crown Commercial Service. Central Government has issued more award value than Local Government in 7 out of the last 10 months. 25B 20B Top 5 Sectors Other Energy IT Business Services Healthcare Construction Awards by Sector 15B 10B 5B In May Other was the largest sector by value with 8Bn of awards. This was driven by the Environmental Services ( 3Bn) and Public Utilities ( 1Bn) sectors. Tussell Index Page 11
12 SME Award Volume and Value Date Awarded SME SME Award Volume B 2500 SME 2B B SME Award Volume In May 2,152 awards with a total value of 2.9Bn were issued to SMEs. On average, SMEs have won 2.6Bn per month for the last 12 months. SMEs as % of Total by Region (Previous 12 Months) SME N Y Northern Ireland Wales Yorkshire and the Humber East of England Scotland North East East Midlands South East South West West Midlands London North West UK Gov SME target (2020) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % of Total Over the last 12 months 6 out of 12 regions issued at least 33% of their award value directly to SMEs - ahead of the UK government's target for Tussell Index Page 12
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