Framework Agreement

From Buyers Manual

A framework agreement is an umbrella agreement which is awarded to just one or more than than two suppliers to set out all or some of the terms for the buyer and suppliers when entering into call-off contracts throughout the length of the agreement. These terms may include basic prices, quality and quantity of work, but it is worth noting that just because a supplier is included in the agreement this does not mean any work is guaranteed to be won. These kinds of agreements are useful when products, works or services are required on a repetitive basis but when the exact quantities are not known (such as stationery supplies). [1]

The framework agreement between buyers and suppliers can normally be over a period of four years. Being part of such an agreement can reduce transaction costs for suppliers as going through the whole tendering process can be costly and time consuming. A framework agreement can also improve long term relationships with the buyer. [2]

Framework agreements will be advertised in the OJEU if it exceeds the threshold but individual call-offs (individual contracts) within the agreement will not need to be advertised.

The purchasing authority can just call-off a contract as and when it is needed if there is just one supplier included in the agreement. If there is more than one supplier in the agreement there are two ways in which call-offs can be awarded. The first is when the terms of the initial agreement are detailed enough so that the most suitable supplier can be identified straight away. The second way call-offs are awarded (when there is more than one supplier involved) is when the terms within the framework agreement are not clear enough, in which case a further mini-competition should be held to find the supplier who offers the best value for money for the work that needs to be carried out.