Navigating Public Sector Framework Agreements
A concise guide for procurement professionals on streamlining processes, reducing administrative burdens, and potentially achieving cost savings through economies of scale in public sector procurement.
Understanding Framework Agreements
Definition
Framework agreements establish terms for future purchases between buyers and suppliers, creating a structure for potential contracts without guaranteeing work.
Duration
These agreements typically last up to four years, allowing buyers to place orders without going through a full tender process each time.
Scope
Public sector frameworks cover a wide range of goods and services, often divided into 'lots' by product or service type, and sometimes by region.
Key Features of Framework Agreements
Pre-approved Suppliers
Suppliers undergo rigorous evaluation of financial stability, technical capability, and compliance before acceptance onto the framework.
Agreed Terms
Commercial terms, pricing structures, and performance standards are established upfront through competitive tendering, ensuring transparency and value for money.
Flexibility
Buyers can conduct mini-competitions between framework suppliers or make direct awards based on best-fit criteria for specific requirements.
Call-off Contracts
Streamlined procurement process allows buyers to place specific orders (call-offs) quickly while maintaining compliance with public procurement regulations.
Legislative Context
1.Public Contracts Regulations 2015
Set out rules for framework agreements, including maximum duration of 4 years for most frameworks and guidelines on awarding contracts within a framework.
2.Procurement Act 2023
Brings major changes to public procurement, replacing current regulations from 24 February 2025. Introduces new rules on framework duration and more flexibility in framework design.
3.Compliance with Procurement Regime
Public bodies must follow strict rules when using framework agreements, maintaining detailed records and ensuring all purchases follow agreed terms.
Procurement Process in the Public Sector
Initial Steps
Identify needs, create business case, conduct market research, develop technical specifications.
Tendering
Publish tender notice, invite bids, evaluate proposals against set criteria.
Award
Choose winner based on clear criteria, publish contract notice, observe standstill period, sign contract.
Role of Centralised Procurement Authorities
Crown Commercial Service (CCS)
UK's largest public procurement organisation, managing framework agreements and supporting acquisition of supplies and services for contracting authorities.
Key Functions
Negotiating bulk deals, providing expertise on complex processes, developing standardised contracts, managing supplier relationships.
Centralised vs Decentralised
Centralised offers economies of scale and consistent policies, while decentralised allows for tailored purchases and faster response to urgent needs.
The Tender Writing Process
Read Tender Documents
Carefully analyze all tender documentation, including requirements, evaluation criteria, and submission guidelines. Mark key deadlines and mandatory requirements.
Create Clear Structure
Organize your response with a logical flow that directly mirrors the tender questions. Include clear section breaks and consistent formatting to help evaluators follow your narrative.
Demonstrate Value
Present compelling evidence of how your solution delivers both immediate and long-term benefits. Include specific examples, metrics, and case studies to support your value proposition.
Proofread Carefully
Review thoroughly for technical accuracy, compliance, and clarity. Have multiple team members check the document to ensure completeness and eliminate any errors that could impact your credibility.
Selecting Suppliers and Awarding Contracts
1
Assess Framework Suppliers' Capabilities
Review technical competencies, financial stability, and framework compliance history
2
Conduct Mini-Competition Process
Issue detailed specifications to framework suppliers for competitive quotes and solutions
3
Establish Call-Off Agreement Terms
Define specific deliverables, KPIs, and pricing for the individual contract
4
Complete Award Documentation
Issue award notice on Find a Tender service and complete mandatory reporting
Varieties of Frameworks
Dynamic Purchasing Systems (DPS)
Flexible procurement tools allowing new suppliers to join at any time. Ideal for buying commonly used goods or services. Buyers can quickly conduct mini-competitions among qualified suppliers.
Multi-Supplier Frameworks
Involve several pre-approved suppliers for a specific category. Typically run for 2-4 years. Buyers can purchase from any listed supplier without a full tender process each time. Suppliers compete for individual contracts through mini-competitions.
Frequently Asked Questions
Framework agreements are essential in public sector procurement, offering streamlined purchasing and increased flexibility for buyers and suppliers.
What constitutes a framework agreement in public procurement?
A framework agreement establishes terms for future purchases between buyers and suppliers, creating a structure for ordering goods without repeated full tenders.
These agreements typically last 2-4 years and don't guarantee business, but provide a contract foundation.
What differentiates a framework agreement from a standard contract?
Framework agreements allow multiple purchases over time with flexible supplier selection, unlike standard contracts which are for single, specific purchases.
Buyers can choose from pre-approved suppliers for each transaction.
How does one become a supplier on public sector frameworks?
Businesses must complete a competitive tender process, submitting detailed proposals and demonstrating capability through experience, financial stability, and quality standards.
Are there obligatory tender notices for call-off contracts under public sector frameworks?
Call-off contracts usually don't require new tender notices, though some frameworks may mandate mini-competitions among suppliers.
Can you outline the advantages and disadvantages of framework tendering?
Framework tendering reduces procurement time and costs. Suppliers gain multiple contract opportunities without repeated full tenders.
However, frameworks can limit competition, as new suppliers can't join until renewal.
What are the fundamental principles governing public procurement?
Public procurement follows key principles of transparency, equal treatment, and non-discrimination.
Buyers must make decisions based on objective criteria, treating all potential suppliers fairly.