Major Update: Debt Resolution Services 2 Framework Expanded to 22 Lots - Your Complete Guide
What is Crown Commercial Service and Why This Framework Matters
Crown Commercial Service (CCS) is the UK's largest public procurement organisation, managing over £18 billion of public spending annually. CCS works with both central government departments and wider public sector organisations to ensure they achieve maximum commercial value when procuring common goods and services.
The Debt Resolution Services framework is CCS's specialised agreement that provides public sector organisations with access to a range of debt recovery and related services. These services help government bodies recover outstanding payments efficiently while adhering to strict ethical standards, ultimately protecting public finances and ensuring fair treatment of debtors.
Current Framework Ending: Why DRS2 Creates New Opportunities
The existing Debt Resolution Services (RM6226) framework is scheduled to expire in December 2025. This agreement has been the primary route to market for debt recovery services across central government and the wider public sector since its establishment.
In preparation for this expiration, CCS has now published the Prior Information Notice for its replacement - Debt Resolution Services 2 (DRS2) - revealing a significantly expanded structure with 22 lots, more than double the 10 lots originally planned during January's market engagement sessions. This major expansion creates substantial new opportunities for suppliers across the debt resolution sector.
With an estimated total value of £800 million and a publication date set for March 20, 2025, this framework represents one of the most significant procurement opportunities in the financial services sector for 2025. The PIN confirms that tender documents will follow shortly after publication, with a likely submission deadline in August 2025.
Time-Sensitive: Key Actions to Take Now
With the publication date set for March 2025, there are several critical actions potential bidders should take immediately:
First, assess your FCA permissions against the framework requirements. The market engagement documents explicitly mention FCA regulation as a requirement for certain lots. Check whether your current permissions cover the specific activities you intend to bid for, as FCA variation of permission applications typically take 6+ months to process - making this an urgent consideration.
Second, begin your Cyber Essentials certification process if not already certified. The PIN explicitly states this is a mandatory requirement for bidding. The certification process typically takes 4-8 weeks depending on your current security posture, so starting this process now provides necessary buffer time.
Third, review your performance data specifically for public sector clients. The evaluation will likely prioritise relevant public sector experience, so begin collecting and formatting evidence of successful debt recovery for government clients. If your public sector experience is limited, identify comparable commercial examples that demonstrate transferable capabilities.
Fourth, start developing your Carbon Reduction Plan. The PIN references PPN 06/21 requirements, which mandate specific content and formats for these plans. Based on our experience with other frameworks, developing a compliant plan typically takes 4-6 weeks, including data collection, analysis, and formal documentation.
Fifth, evaluate your capacity to deliver across multiple geographic regions if bidding for regional lots. The expanded regional focus, particularly for auctioneers services, will require demonstrable capacity in specific areas. Begin mapping your resources against these requirements and identify any gaps requiring attention before tender release.
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Contact us todayWhat's Changed: Key Framework Updates You Need to Know
The framework structure has evolved substantially from earlier announcements. During the January 2025 market engagement, CCS presented a streamlined 10-lot structure, but the PIN now confirms a much broader approach. The new structure includes dedicated litigation services for both England/Wales and Scotland, which had previously been removed from the framework. Regional auctioneers services have been expanded from a single lot into six region-specific lots, creating opportunities for local specialists.
Perhaps most surprisingly, the PIN includes new service areas not mentioned in previous engagement, including International Collections and cryptocurrency collection capabilities. This suggests CCS has identified growing demand for recovering funds from overseas debtors and digital assets - areas not previously covered in government debt frameworks.
The timeline has also shifted slightly. Earlier communications indicated a May 2025 tender release, but the PIN now specifies March 20, 2025, giving suppliers less preparation time than initially suggested. However, the award date remains November 2025, meaning the evaluation period has been extended.
Complete Framework Structure: What Each Lot Covers
The full lot structure now includes services ranging from traditional debt collection to specialised recovery areas:
Lot 1 (Managed Collections) will provide comprehensive collection services for larger clients, focusing on end-to-end debt management solutions. According to the January market engagement materials, this will require FCA regulation, Cyber Essentials Plus certification, and adherence to Government Debt Management Function standards.
Lots 6-7 (Litigation Services) represent a significant reversal from earlier plans. During market engagement, CCS stated these services would be removed due to underperformance and availability on other legal frameworks. Their reintroduction suggests strong customer demand for debt litigation expertise that wasn't satisfied by general legal services frameworks.
Lots 8-13 (Regional Auctioneers Services) provide asset disposal services across six geographic regions. This regional approach acknowledges the local nature of these services and opens opportunities for smaller regional providers who might not operate nationally.
Lots 15-19 (Spend Analytics and Recovery Services) maintain the approach from earlier frameworks. During market engagement, CCS specifically noted they kept these as separate lots to support SME participation and expertise, rather than combining them into a single lot.
Lot 22 (International Collections) is entirely new and wasn't mentioned in earlier communications. This suggests growing public sector demand for recovering debts from international debtors - a specialised area requiring different approaches and regulatory knowledge than domestic debt recovery.
Why the Strategic Change in Approach?
The CCS market engagement documents reveal several key insights into why the framework has been restructured so significantly:
The primary driver appears to be better serving smaller public bodies. The commentary repeatedly mentions that the previous structure primarily benefited "very large central government customers" due to "mobilisation and implementation costs." The restructuring aims to ensure "lower volume and lower value" organisations can access appropriate services.
Another factor is promoting SME participation. The decision to maintain separate SARS lots rather than combining them was explicitly justified as supporting "SME and specialist approach" and opening "the framework to more SMEs." This aligns with broader government procurement objectives to increase SME spending.
Practical usage patterns also influenced the restructuring. Several lots were removed because, as CCS noted, they "did not attract any spend" or were "underperforming." Simultaneously, lots showing increased activity, particularly the SARS services, were retained and expanded based on "a lot of interest recently."
The Procurement Act 2023 has enabled new approaches to call-offs. The commentary specifically notes the new regulations offer "flexibility in framework types and lengths" and are "clearer on what can be awarded without competition." This legislative change appears to have enabled more innovative framework structures.
Current Framework Suppliers: Diverse Specialists Across Multiple Lots
The existing Debt Resolution Services framework includes a wide range of suppliers across multiple specialties, demonstrating the diversity of expertise required in this sector:
Strategic Advisory Services: Major consultancies including Accenture (UK) Limited, McKinsey & Company, and PwC currently provide strategic debt management expertise to government departments looking to optimise their approaches.
Data and Analytics: Specialists like Equifax Limited, Experian Limited, TransUnion International UK Limited, GBG, and Xantura Limited deliver critical information services to help public sector organisations assess debtors' financial circumstances.
Enforcement Services: The framework includes numerous enforcement specialists including Bristow & Sutor, CDER Group Limited, Equita Limited, Jacobs Enforcement Limited, Marston (Holdings) Limited, Newlyn PLC, Reventus Limited, Rundle & Co. Limited, and others who help recover debts through formal enforcement actions.
Legal Services: For debt-related legal work, the framework features firms including BW Legal, Credit Style and CST Law, Equivo Limited, Lovetts Solicitors, and Shakespeare Martineau LLP.
Auctioneers: Asset disposal specialists like Asset Management Services (UK) Ltd and John Pye Auctions help public bodies recover value from seized assets.
Managed Debt Services: Companies like Just, Liberata UK Limited, and Qualco (UK) Limited provide comprehensive debt management solutions.
Technology Solutions: Specialised debt technology providers including Aryza Ireland Limited, Arum Systems Ltd, IE Hub, Paylink Solutions Limited, and Policy in Practice Ltd offer systems that help manage debt collection processes.
Spend Recovery: The framework includes specialised spend recovery firms including Glantus UK Limited, Liaison Financial Services Limited, PCMG, Berthold Bauer Consultants, and CRS VAT who help organisations identify and recover overpayments.
This diverse supplier base reflects the complexity of the debt resolution landscape. With the expansion to 22 lots in the new framework, both current suppliers and new entrants will need to carefully consider which specific areas best match their capabilities.
Strategic Changes to the Framework Approach
The January 2025 market engagement materials reveal several strategic changes influencing the framework's development:
First, CCS has decided to separate the Managed Collections approach into a separate procurement entirely. They're planning to tender this as an 8-year open framework in late 2026, with go-live in autumn 2027. According to their commentary, this aligns with key customer procurement timelines, as major departments don't need new Managed Collections contracts until 2028. This creates a significant timeline gap for suppliers focusing exclusively on this area.
Second, CCS is placing greater emphasis on serving smaller public bodies. The market engagement notes that "Managed Service Collections was not suited to all customers" due to "mobilisation and implementation costs, and the type of service offered." The new structure introduces direct debt collection services specifically for "lower value and lower volume" clients like local authorities and housing associations.
Third, CCS is exploring new award mechanisms. For Enforcement Services specifically, they noted they're "looking at the award mechanisms" including potential "option of award without competition" where appropriate. This reflects the new Procurement Act 2023's clearer guidance on direct award circumstances, potentially streamlining the process for buyers.
Fourth, social value requirements are evolving. The market engagement noted that while social value remains "critical," CCS expects "these priorities to change" following the recent government change. They specifically mentioned COVID recovery is "unlikely to be a priority" with "more emphasis in other areas." This suggests bidders should prepare for updated social value priorities in the final tender.
Key Compliance Requirements: What You'll Need to Demonstrate
The PIN and market engagement materials reveal several critical compliance requirements:
Cyber Essentials certification is mandatory for all services under the procurement. The PIN explicitly states that "to participate in this procurement, bidders will be required to demonstrate that they hold Cyber Essentials for the services under and in connection with the procurement." Furthermore, it notes that suppliers "may be awarded a contract but shall not enter into any call off contracts with buyers" until they meet these requirements.
For data handling, services involve material marked OFFICIAL/SENSITIVE under the Government Security Classifications Scheme (April 2014). The PIN states suppliers "will be required to implement their solution in accordance with the relevant schedule, 'Security Requirement and Plan'," with full details released at ITT stage.
The market engagement materials highlight lot-specific requirements. For Debt Collection Services (Lot 1), suppliers need FCA regulation, adherence to Government Debt Functional standards, and compliance with GDMF Toolkits including vulnerability assessment guidance. For Enforcement Services (Lots 2-3), suppliers need to demonstrate compliance with CIVEA standards and Enforcement Conduct Board requirements.
Carbon reduction requirements also feature prominently. The PIN specifically references PPN 06/21, requiring a compliant Carbon Reduction Plan. It notes that "The Carbon Net Zero Team cannot advise on CRP compliance to bidders in a live procurement" but directs suppliers to training resources.
Thornton & Lowe's Framework Bid Support: Practical Assistance
At Thornton & Lowe, we help businesses win places on valuable government frameworks like DRS2. Our support goes beyond generic bid writing to provide practical, framework-specific assistance:
Framework Positioning Strategy
We begin by analysing your exact service capabilities against the detailed lot requirements. For DRS2, this includes mapping your FCA permissions against lot-specific needs and identifying which geographic regions you're best positioned to serve. We've helped numerous clients successfully determine their optimal lot selection strategy - including when to bid for multiple lots and when to focus resources on specific lots for maximum chance of success.
Compliance Gap Analysis
We conduct comprehensive assessments of your current compliance position against framework requirements. For DRS2, this includes reviewing your FCA permissions, Cyber Essentials certification status, data security protocols, and carbon reduction initiatives.
For each identified gap, we develop practical remediation plans with realistic timelines. For example, when working with clients needing Cyber Essentials certification, we provide specific guidance on the certification process, typical timelines (usually 4-8 weeks depending on current security posture), and interim measures to demonstrate security commitment during the certification process.
Response Development
Our bid writers create compelling, evidence-based responses specifically structured for CCS framework evaluations. We know from experience that CCS evaluators look for clear structure, specific examples, and measurable outcomes.
For regulatory-focused sections like those in DRS2, we help articulate your compliance approaches in evaluation-friendly formats. Rather than simply stating "we comply with FCA regulations," we help you demonstrate how your specific processes, training programs, quality assurance measures, and governance structures ensure compliance and how these translate to better outcomes for public sector clients.
Evidence Enhancement
We help strengthen your supporting evidence by identifying your most compelling proof points and presenting them effectively. For DRS2, this might include performance metrics showing high recovery rates alongside fair treatment statistics, customer testimonials from similar public bodies, or case studies demonstrating successful vulnerable customer identification and support.
We've helped clients improve their evidence quality by conducting detailed performance analysis, identifying previously overlooked strengths, and structuring evidence in formats that directly align with evaluation criteria. In one instance, we helped a client transform basic performance statistics into compelling evidence that increased their quality scores by 15%.
Framework Bidding: Practical Insider Tips
CCS's market engagement materials provided several practical tips that align with our experience supporting successful framework bids:
The importance of preparation cannot be overstated. The materials advise suppliers to "start to think of examples for the certificates of technical and professional ability" well in advance. Our experience shows that clients who begin evidence collection at least 3 months before tender release typically score 10-15% higher than those who start during the tender period.
Understanding the new regulations is critical. With DRS2 being tendered under the Procurement Act 2023, CCS emphasises suppliers should "familiarise yourself with the new regulations." Based on our experience with early Procurement Act tenders, evaluation approaches have evolved significantly, with greater emphasis on broader value rather than just price.
Response quality matters more than quantity. CCS advises being "succinct" and focusing on "key messages and points," defining acronyms, and directly answering the question asked. Our analysis of successful framework bids shows that responses exceeding 70% of the word count but under the limit typically score highest, allowing sufficient detail while maintaining evaluator engagement.
How Thornton & Lowe Elevates Your DRS2 Bid
With such significant changes to the framework structure and approach, working with framework specialists is more important than ever. At Thornton & Lowe, we bring practical expertise that goes beyond general bid writing:
Our CCS framework bid specialists have supported hundreds of successful framework applications, giving us unparalleled insight into evaluation approaches and success factors. For frameworks like DRS2, we've developed sector-specific approaches that help translate complex compliance measures into evaluation-friendly narratives.
Our approach is always practical, focusing on specific actions to improve bid competitiveness. Rather than generic advice, we provide detailed guidance on exactly what evidence to collect, how to format it effectively, and which aspects to emphasise for maximum evaluation impact.
Contact Us Today
With the tender due to be published in March 2025, now is the time to begin preparing your DRS2 bid strategy. Contact Thornton & Lowe today to discuss how we can support your successful application to this £800 million framework opportunity.
We offer flexible support options ranging from comprehensive bid management to targeted assistance with specific sections, all designed to maximise your chances of framework success. Our proven track record with CCS frameworks, combined with our specialist knowledge of debt recovery services, makes us the ideal partner for your DRS2 bid.
