Procurement Profile: Department for Business, Energy & Industrial Strategy

Procurement Profile: Department for Business, Energy & Industrial Strategy

Posted by James Piggott on 08-Oct-2021 15:47:35

The UK's Department for Business, Energy and Industrial Strategy (BEIS) is responsible for - as the National Audit Office puts it - maximising investment, promoting competitive markets, cultivating industrial activity and delivering green, affordable energy.

BEIS was formed in July 2016 and has since spent over £26 billion with private suppliers, making it the second-largest public sector buyer since its inception.

Understanding how, from whom and what BEIS procures is pivotal if you're looking to do business with them, or want to cement your existing relationships!

Using Tussell's aggregated data platform, this blog provides an analysis of BEIS's procurement behaviour from 2016 - 2020. Skip ahead to read about BEIS's:

 

This is the second profile in Tussell's new series of public buyer profiles: read our first profile on the Department for Work and Pensions!

 

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Tussell's database shows that since its creation to the end of 2020, BEIS spent approximately £26.2 billion across over 50,000 transactions with suppliers and organisations.

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This made BEIS the 2nd largest public sector buyer by total invoice value with private suppliers (when including non-profit organisations like research institutes, charities, societies, councils etc.). This was one place below the Ministry of Defence, and one above Network Rail Infrastructure.

From July 2016 - 2020 - excluding organisations like research institutes, charities, societies, councils etc. - BEIS's largest suppliers by spend were: 

Supplier / Organisation

Sector

Total Invoice Value

Largest Listed Contract

Contract Value / Award Date

ICF Consulting Services Ltd

Strategy Consulting

£57.5m

Green Homes Grant Voucher Scheme Administration

£88.3m / Sept 2020

Triple Point Investment Management LLP

Investment Management

£44.3m

UK-London: Heat Networks Investment Project

$10.8m / July 2018

Bouygues E&S FM UK Ltd

Construction

£38.2m

None publically listed.

-

Visionist Ltd

Digital Consulting

£35.1m

WP2 Operational Support Managed Service

£3.71m / March 2019

MW High Tech Projects UK Ltd

Engineering

£30.1m

None publically listed.

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From 2016 - 2020, BEIS awarded - at least - 425 contracts across 325 suppliers, valued at £851 million.

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As the above analysis shows, both the quantity and value of BEIS's contract awards has grown sizeable since 2019. The final half of 2020 saw BEIS's highest ever contract award totals, while the first quarter witnessed its highest volume of awarded contracts. Opportunities to do business with BEIS are growing year on year!

 

Over this period, its largest contracts included:*

Title

Award Date

Award Value

Supplier(s)

Green Homes Grant Voucher Scheme Administration

September 2020

£88.3m

ICF Consulting Services

Commitment Agreement 

November 2020

£71m

The Gavi Alliance

UK PACT (United Kingdom Partnering for Accelerated Climate Transitions)

January 2020

£60m

PA Consulting Services, ICF Consulting Services, Palladium International

Services Agreement for the production of fill finished vaccines for COVID-19 and therapeutics for use in the UK health system

July 2020

£50m

C P Pharmaceuticals

BEIS's COVID-19 vaccine contract awards were assigned a designated nominal value of £1, so do not appear amongst the highest value contracts.

 

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Tussell's platform identified 50 BEIS likely-to-be-renewed contracts *- with a total award value of £172 million - that are due to expire between 2023 and the end of 2026.

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By scanning ahead, your business can engage early with BEIS to understand what exactly it is they are looking for on a bid.

Notably, only 5 of these contracts - valued at just over £31 million - were call-offs from a framework. Upcoming opportunities appear to lie predominantly outside frameworks, making BEIS a valuable target for companies not currently on many or any frameworks.

The largest of these contracts - that were not call-offs - are:

Contract Title

End Date

Award Value

Supplier(s)

Commitment Agreement

October 2023

£71m

The Gavi Alliance

Provision of Human Challenge Studies

October 2024

£46.1m

Hvivo Services Limited

UK-London: Heat Networks Investment Project - Main Scheme Delivery Partner

March 2023

£10.8m

Triple Point LLP

Management of the Nuclear Safeguards Programme

March 2025

£9.75m

National Nuclear Laboratory Ltd

Compilation and reporting of the National Atmospheric Emissions Inventory

March 2025

£9.04m

Ricardo-Aae Ltd, Aether Ltd, RSK Adas Ltd, GL Industrial Services UK Ltd, Forest Research Agency, Forestry Commission England, Gluckman Consulting Ltd, Rothamsted Research Ltd

* "likely-to-be-renewed" = 'services' and 'supplies' contracts.

 

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From 2016 - 2020, BEIS awarded contracts to over 300 suppliers.

This is an already large and diverse pool of suppliers of a relatively young department, and is a promising indicator if you're a hopeful BEIS supplier!

BEIS' largest suppliers - by total contract award value, and including only for-profit organisations - were:

 

Supplier

Sector

Total Contract Award Value

Largest Listed Contract

Contract Value / Award Date

ICF Consulting Services

Strategy Consulting

£113m

Green Homes Grant Voucher Scheme Administration

£88.3m / September 2020

C P Pharmaceuticals Ltd

Pharmaceuticals

£50m

Services Agreement for the production of fill finished vaccines for COVID-19 and therapeutics for use in the UK health system

£50m / July 2020

Hvivo Services Ltd

Biological Research

£46.1m

Provision of Human Challenge Studies

£46.1m / October 2020

PA Consulting Services

Technology Consulting

£27.7m

UK PACT (United Kingdom Partnering for Accelerated Climate Transitions)

~ £20m / January 2020

PWC

Consulting

£24.2m

Climate Finance Accelerator Delivery Partner

£9m / November 2020

 

 

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Below is a breakdown of BEIS' spend on IT and Consultancy. This analysis was conducted using CPV codes, meaning the data collected may include some anomalous results.

 

IT and Software (CPV: 48000000, 72000000, 42960000)

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BEIS spent just over £60 million on IT and software-related contracts from 2016 - 2020, spanning 83 contracts and 64 suppliers.

As the above graph illustrates, the quantity of IT and software contracts - both in volume and value - have increased over the last couple of years.

The largest suppliers - by total contract award value - were Visionist (£9.61m), UniSystems SA (£6m), Trasys International (£6m), and UMI Commercial (£3.68m).

The largest contracts in this period included:

Title

Award Date

Award Value

Supplier(s)

UK Emissions Trading Registry

July 2019

£4.6m

UniSystems SA, Trasys International

UK Emissions Permitting, Monitoring, Reporting and Verification System

January 2020

£3.78m

UniSystems SA, Trasys International

WP2 Operational Support Managed Service

January 2020

£3.71m

Visionist

 

Looking ahead at BEIS' recently closed / still open IT-related contract notices and Pre-Information Notices (PINs) indicates its current and upcoming priorities:

  • Closing in November 2021, BEIS are looking for a digital partner to aid the recently founded Investment Security Unit, providing them access to "detailed information about ongoing UK-inbound foreign investment", and an "ability to conduct detailed due diligence" "at pace". The notice is valued at over £7 million.

  • In June 2021, BEIS closed a contract notice that sought to develop an Alpha build of an upcoming "enriched, machine-readable dataset of regulations and open API" across 2-3 business sectors. The notice was valued at nearly £700k.

  • In September 2021, BEIS closed a contract notice that sought to develop an Alpha build of an upcoming "digital service that enables building owners, tenants and assessors" to easily upload and compare their building's energy rating. The notice was valued at nearly £700k.

 

Marketing, Recruitment, Consultancy (CPV: 79000000)

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BEIS spent approximately £195 million on marketing, recruitment and consultancy related contracts from 2016 - 2020, spanning 79 contract awards and 68 suppliers.

The largest suppliers were ICF Consulting Services (£88.3m), PWC (£15.8m) and Linklaters (£10m).

The largest contracts in this period included:

Title

Award Date

Award Value

Supplier(s)

Green Homes Grant Voucher Scheme Administration

September 2020

£88.3m

ICF Consulting

Legal services for New Nuclear

November 2017

£10m

Linklaters

Climate Finance Accelerator Delivery Partner

November 2020

£9m

PWC

 

Again, looking at BEIS' recently closed / open contract notices and PINs indicates the department's current and upcoming priorities:

 

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Of the £851 million worth of contracts awarded from 2016 - 2020, at least £204 million were awarded as call-offs on a framework.

Using Tussell's advanced frameworks analytics, we discovered that BEIS was a call-off buyer on f buyer on roughly 27 frameworks, having called-off fed 74 contracts across them across this period.

By value of identified call-offs, the largest of these frameworks were: Grants and Programmes Services, General Legal Advice Services (RM3786) and Public Services Network (PSN) Services (RM1498). 

By the count of identified call-offs, the largest of these frameworks were: G-Cloud 11 (10 call-offs), General Legal Advice Services (RM3786) (9 call-offs), and Management Consultancy Framework 2 - Phase 1 Lots 1 & 2 (9 call-offs).

If you're looking to do more business with BEIS, these are the frameworks to get onto!

Across the same period BEIS only operated 2 frameworks itself, Smart Meter Load Control Device Trial and the Futures Framework, at a potential value of £542,000 and £300,000 respectively. From this analysis, it is clear that BEIS much prefers using external framework providers rather than running them itself.

 

 

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Of the £851 million worth of contracts awarded from 2016 - 2020, approximately £264 million - or 31% - was awarded to companies tagged as SMEs in Tussell's database. 

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As the above analysis indicates, the volume and value of contracts awarded by BEIS to SMEs have increased over the past four years. The final quarter of 2020 saw the highest quarterly volume of SME-awarded contracts and second-highest quarterly value.

If you're an SME, BEIS appears an increasingly promising buyer to turn to!

By sector, some notable suppliers and contracts have included:

Title

Sector

Award Value / Date

Supplier(s)

UKSBS PR18079 Business Support Helpline

Consulting

£8.53m / March 2020

UMI Commercial

Nuclear Security Culture Programme

Administration, Defence and Social Security

£6m / June 2016

Amport Risk

Technical Services for Assessing the Energy Performance of Buildings

Software

£3.68m / June 2017

Aecom, Robust Details, Building Research Establishment

To provide BEIS with operational support managed services

IT

£3.68m / March 2019

Visionist

Evaluation of the Heat Networks Investment Project

Construction / Consulting

£850k / July 2019

Riskol Consulting

 

If you're an SME, find out how to do more business with the public sector in Tussell's SME guide.

 

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The Department for Business, Energy and Industrial Strategy is a public sector giant, spending billions on suppliers - large and small - across a range of sectors. This profile only skims the surface of BEIS' expansive procurement landscape.

Want to dig even deeper? Tussell's market intelligence platform lets you explore BEIS's - and all public sector buyers' and suppliers' - spend, contract awards, favoured frameworks and more!

Book a demo with our team to see how Tussell can let you make more informed business decisions in the public sector.

 

This is the second profile in Tussell's new series of public buyer profiles: read our first profile on the Department for Work and Pensions!

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