Major UK public sector purchasing organisation YPO has awarded a new digital marketplace contract to Amazon Business.
YPO previously awarded a four-year framework contract to Amazon Business in 2019. Following what was described as a “robust” tender process that began last October, it has now named Amazon Business as the sole provider of a new digital marketplace. The latest framework began on 24 January 2023 and will run for up to four years. The maximum value has been set at £500 million.
In its press release, the purchasing organisation highlighted Amazon’s use of small business resellers.
“Amazon is partnered with up to 85,000 SMEs in the UK, with small businesses accounting for more than half of everything Amazon sell in their online stores,” it stated. “These small businesses selling on Amazon have created over 250,000 jobs nationally.”
Award criteria were based on the performance and security of a bidder’s digital marketplace, policies, procedures, sustainability, continuous improvement, innovation and cost. These, said YPO, were designed in line with its customers’ key national and regional priorities, which include: increasing opportunities for regional suppliers, decarbonisation, supporting job creation, increasing equality, diversity, health and well-being, alongside achieving the best value for money in the public sector.
“During tender, Amazon Business best demonstrated and provided evidence for SME engagement, initiatives to achieve environmental targets and investment in positive environmental practices within the wider supply chain,” YPO noted. “The bid from Amazon Business also demonstrated competitive pricing, ensuring that delivery costs are minimised for public sector customers.”
YPO Managing Director Simon Hill commented: “Given the framework is now in its second iteration, customers will continue to be able to access this innovative digital marketplace in a compliant way, which provides a streamlined way for our public sector customers to purchase the products that they need.”