What do I need to know about Framework Agreements?

What are framework agreements?

Frameworks are “umbrella agreements” that sets out the terms – particularly relating to price, quality and quantity – under which individual contracts (call-offs) can be awarded throughout the period of the agreement (normally a maximum of 4 years). They are typically used when the buyer(s) identify a need for specific products or services but are unsure of the scope or time-frame.

Do frameworks need to be advertised on Find a Tender (FTS)?

In line with public procurement legislation, if a framework agreement is publicly funded and the estimated total value of all the potential call-offs exceeds the relevant procurement threshold – then it should be advertised on Find a Tender (FTS).

Who can use frameworks?

Any organisation subject to public procurement regulations can publish a framework agreement. Many are published either on behalf of multiple buyers or left open for use by some or all public sector organisations.

How do I secure a place on a framework?

Notices announcing framework agreements are published in the same manner as standard invitations to tender
Suppliers wishing to participate must register interest using the details provided on the notice and will be awarded a place subject to their ability to satisfy selection criteria
Only those suppliers who respond to the original notice and are selected will be eligible to participate in any call-offs made under the framework

How are call-offs awarded?

If the framework agreement is awarded to only one supplier, the buyer can simply call-off a requirement from them as and when they wish. If the framework is awarded to several suppliers, there are two ways in which call-offs can be conducted:

If the terms laid out in the framework agreement are detailed enough for the buyer to identify the best supplier for a particular requirement, they can directly award a contract
If the buyer is unable to identify which supplier could offer them best value for money for a particular requirement, a mini-competition can be held between all the approved suppliers

What are the advantages of frameworks?

For Suppliers

Possibility of being awarded multiple contracts
Reduction in administrative burden due to streamlined procedure
Chance to build lasting working relationships with multiple buyers

For Buyers

Less downtime between identifying a need and fulfilling it
Reduction in administrative costs associated with publishing multiple notices
Potential savings with economies of scale – suppliers may offer more competitive prices

What are the disadvantages of frameworks?

For Suppliers

No guarantee of business even if you’re selected as an approved supplier
Suppliers unsuccessful at the selection stage are locked out of any call-offs for the duration of the agreement

For Buyers

Frameworks are unresponsive to change. There may be new suppliers and/or new solutions within the market that were not included when the agreement was initially set up
They apply a ‘one size fits all’ approach, which may make it difficult for buyers to satisfy their own procurement objectives