Framework Agreement

A general agreement with suppliers that establishes terms and conditions for future purchases, without creating obligations to buy specific quantities or values.

How it works

A framework agreement establishes the contractual foundation for future procurement without committing to specific purchases. Under the Public Contracts Regulations 2015, contracting authorities conduct a competitive process to select suppliers who can provide goods, services or works under pre-agreed terms including pricing structures, specifications, and delivery conditions.

Once established, the framework enables 'call-off' contracts for specific requirements without repeating the full tender process. Authorities can either purchase directly from a single supplier (direct award) or run mini-competitions between framework suppliers for particular requirements.

Frameworks typically last up to four years and must specify maximum values, though authorities aren't obliged to reach these limits. The agreement covers multiple potential buyers within the same organisation or across different public bodies when established as a central purchasing arrangement.

Types and benefits

Frameworks operate as single-supplier agreements with one chosen provider, or multi-supplier arrangements offering choice and competition for each purchase. They're particularly valuable for recurring requirements like IT services, office supplies, or consultancy where specifications vary but core terms remain constant.

The approach reduces procurement timescales, administrative costs, and provides price certainty while maintaining competitive tension through the initial selection process. Framework suppliers benefit from potential access to multiple contracts over the agreement's lifetime, though success isn't guaranteed.

Compliance requirements

Framework establishment must follow full EU/UK procurement procedures including OJEU/Find a Tender notices where thresholds apply. All call-offs must comply with the framework's terms, and any material changes require proper variation procedures or new procurement exercises.