What is a mini-competition in procurement?
Buyers and suppliers still say “mini-competition”, but since 24 February 2025 the legal term is a competitive selection process. Section 45(3) of the Procurement Act 2023 says a framework may only provide for the future award of a public contract following a competitive selection process, unless the framework has only one supplier on it, or it sets out both the core terms of the call-off and an objective mechanism for choosing between suppliers (section 45(4)). Light touch frameworks, which cover much of health, care and education work, sit outside the rule altogether under section 45(9). In plain terms: you are already on the framework, and now you are competing against the other suppliers on it for one specific call-off contract.
During the tendering process, the term mini-competition may crop up frequently. A procurer may run a mini competition to refine their requirements while retaining the benefits offered under the collaborative agreement.
When running a mini competition, a procurer must do several things such as:
- Comply with the terms of the framework agreement
- Decide on the level of service they want
- Decide on how they will assess the bids following any rules the framework noted
- Choose if they want to run an expression of interest process.
(This is not an exhaustive list)
Benefits of running a mini-competition under a framework agreement
The first benefit is speed. A mini competition saves time when procuring a good or service. A supplier does not need to re-submit a full tender submission, if they are already on a framework.
This saves time for both suppliers and buyers, as the buyer does not need to evaluate a full tender submission again.
The supplier will already have met the conditions of participation set when the framework was awarded, which usually cover matters such as financial standing and health and safety. That does not mean capability is never looked at again. Section 46 of the Procurement Act 2023 allows a competitive selection process to set its own conditions of participation, where the buyer is satisfied they are a proportionate way of establishing that suppliers on the framework have the legal and financial capacity, or the technical ability, to perform that particular contract. Plan on the basis that your capacity to deliver this specific piece of work may well be tested again at call-off.
Another benefit is savings. Through mini competitions buyers can receive additional cost savings. This is due to the pricing not being fixed or it is fixed at a minimum level. It is important to remember this when pricing services or works. Although it is important to price the service competitively, it is important not to undercut competitors too much. This may lead the buyer to question legitimacy.
Increased competition and options is another added benefit. Mini competition can create opportunities and increased competition from suppliers. This allows buyers to reassess the supplier on the framework and pick their favourite option.
A buyer will be seeking bids that achieve the best value when hosting a mini competition. They are often able to achieve it because of specific requirements. It is important to remember this when pricing the services and writing the responses.
Continuing on from the best value, mini competitions allow buyers to refine their requirements. Buyers may have refined their requirements during the initial framework agreement, but a mini competition allows them to refine it further. Further than the basic contract terms.
The Process
Step One: The invitation to tender (ITT) is issued for a call off contract
A buyer will release an ITT for mini competition for the call off contract. Although they cannot change the basic terms or specific from the framework agreement, they may change:
- Delivery timescales
- Payment or invoicing arrangements
- Associated services such as training, installation and maintenance
- Quantity
- Functional specification
As mentioned before, a buyer can refine the basic terms of the framework agreement when making a call off contract. Any and all important information of the contract will be stipulated in the specification.
This may not necessarily be in the form of an ITT as it could simply be an invitation to quote (ITQ). This is regularary the case as suppliers have already submitted their quality submission to get on the framework. If a buyer wants to know how many suppliers are interested in bidding, then they can issue an EOI. An EOI is an expression of interest. If there is interest as a supplier, a response can be submitted. A buyer will then send their ITT to the suppliers who responded.
Step Two: Write and Submit the Response
Once a supplier has read all of the tender documents, they can start with their response. The format and what needs to be included will be stated within mini competition tender documents.
Step Three: Evaluation
The bid documents will state how the mini competition will be evaluated. Under section 46(8) of the Procurement Act 2023 the buyer may assess proposals only against award criteria used when the framework itself was awarded, but section 46(9) lets it refine those criteria. In practice that means new sub-criteria, or a fuller explanation of what each criterion is looking for, so expect familiar headings with unfamiliar detail underneath. As with section 45, section 46 does not apply to a light touch framework. Depending on the buyer, the evaluation can be on the most advantageous tender or on lowest price.
If being assessed via the lowest price, a buyer will first assess a supplier’s ability to meet their needs. This will be outlined in the specification. It could include the quantity of the goods or services or services required. It would be at this point, they would consider the price. If there are several suppliers who meet their requirements, then the call off may be awarded to the lowest price quoted. This is dependent on the buyer. This type of evaluation is more likely to occur in the private sector.
If a buyer is assessing a mini competition on the most advantageous tender, your responses for quality and price will both be evaluated. The exact criteria will be listed in the specification.
Step Four: Contract Awarded
Once all the submissions have been evaluated by the buyer, the call off contract can be awarded to the supplier of choice. All bidders will be notified of the outcome.