National Framework for the Implementation and Operations of a Supplier Early Payment Scheme

Oldham Council operates an Early Payment Scheme (EPS), whereby discounts are taken from invoices in exchange for early payment.

The discount is calculated dynamically, and is proportionate to how many days the payment is accelerated (number of days between invoice receipt and invoice payment sent).

The discount is only taken if payment acceleration is achieved.

The purpose of such a programme is not only to generate new income for the Council but also to help suppliers by injecting much needed liquidity into the council's supply chain and in particular the local economy.

The Programme has also help to streamline existing Purchase-to-Pay (P2P) processes and maximise efficiency within the council, while supporting the council’s compliance with payments legislation and its adoption of best practice.

Consequently, Oldham Council is seeking to award a single supplier Framework Agreement, open to all local authorities in the UK, for early payment programme provision, offered on a modular basis applicable either Lot 1 Councils without an existing programme, wishing both to implement and operate such a programme (“Implementation and Operation”) Lot 2 Councils like Oldham with an existing programme, wishing to continue to operate such a programme (“Continued Operation”).

The provider must have the capability to serve Councils in both situations and it is envisaged that in either instance the provider will, if they or the council require it, precede the engagement with an assessment.

It is critical that the programme is implemented and operated in a holistic manner, with the provider able to bring together each of the separate activities into a single seamless programme provision.

The council is seeking a provider with sufficient experience and expertise with comparable clients to mitigate potential risks in the implementation and operation of the programme and ensure reliable delivery of the required programme outcomes.

Oldham Council intends to make this Framework Agreement available for use by all UK Contracting Local Authorities.

The framework will also be available to: The Greater Manchester Integrated Transport Authority The Greater Manchester Police Authority The Greater Manchester Fire and Civil Defence Authority