The widespread use of
framework agreements has been linked to a potential fall in the
amount of leasing used by public sector organisations.
Fears that such arrangements
could reduce the use of leasing by cutting out a significant
section of leasing providers were raised by consultant David
Shone.
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Shone, director of Digital
Networks, said: “If a leasing company fails to get on a framework,
it’s unlikely they will have another chance for four
years.”
Such situations have been
experienced particularly in the education sector.
“Framework agreements cut the
amount of times a public sector organisation has to go out to
tender. So they are going out to the market less,” Shone
said.
Cheryl Cordon, senior buyer
for leasing at NHS Supply Chain, defended frameworks’ use, claiming
that they provide lessors with opportunities that might not
otherwise be there.
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By GlobalDataShe said: “For upcoming
framework agreements, we open the tender process to all, and we
award lessors on many different criteria, which can vary from
contract to contract.”
Julian Rose, FLA head of
asset finance, also supported their use.
“The leasing company is on a
long list of suppliers, all bidding in exactly the same terms. That
must be good for competition,” Rose said.
Shone argued that structures
such as NHS Supply Chain compound the problem by duplicating a
single framework agreement for use across several organisations.
NHS Supply Chain procures on behalf of numerous NHS
trusts.
Shone said: “There have been
challenges about this. Organisations are supposed to be specific
about which other organisations use their framework, but people
have been quite lax about it.”
However Rose claimed NHS
Supply Chain had raised the profile of leasing among NHS
trusts.
“Any asset finance company
that wants to be in the health care market is already part of the
NHS Supply Chain framework, or one of several alternatives,” he
said.
“There should be no issue at
all about companies being locked out.
“It very actively talks to trusts about leasing while
talking about equipment needs. That could be the key to a big shift
in leasing penetration.”
