Framework Agreement

Framework agreements are among the most widely used procurement tools in European public markets. Rather than running a full competitive procedure every time a need arises, a contracting authority conducts one competition to establish the framework, then calls off work under it as needs materialise. This approach reduces transaction costs for both buyers and suppliers while preserving competitive discipline.

What is a Framework Agreement?

Under Article 33 of Directive 2014/24/EU, a framework agreement is a general term for an agreement with one or more suppliers that sets out the price, conditions, and other terms under which specific contracts will be placed during the framework period. The framework itself is not a contract for the delivery of goods or services; it is a pre-qualification and pricing structure. Actual delivery obligations arise only when a call-off contract is issued.

Frameworks can be established by a single contracting authority for its own use, or by a central purchasing body (CPB) on behalf of multiple buyers. Purchasing consortia frequently use this model, allowing member organisations to access pre-competed supply arrangements without each running their own procedure.

Frameworks may involve a single supplier or multiple suppliers. When multiple suppliers are admitted, call-off contracts are placed either by direct award (using the ranked order or predetermined criteria established at framework stage) or through mini-competitions that re-open competition among the framework members for each requirement.

Why it matters for bidders

Winning a place on a framework agreement is a significant commercial milestone. It confirms that the contracting authority has evaluated your capability, financial standing, and pricing, and has decided you are a qualified supplier for that category. Once on the framework, you are eligible to receive call-offs for the duration without further selection-stage competition.

Frameworks are also important for what they exclude. Contracting authorities may only place call-offs with suppliers who are on the framework, and suppliers not on the framework cannot bid for individual call-offs. Missing the framework competition therefore locks a supplier out of that buyer's spend in that category for up to four years.

Example

A national health service body establishes a four-year framework for medical consumables, admitting twelve suppliers across three lots. Individual hospitals within the health system can then place call-offs against the framework without running separate procurement procedures. A supplier admitted to Lot 2 (wound care products) is eligible for all wound care call-offs during the framework period, while suppliers not on the framework cannot compete for those call-offs.

Frequently Asked Questions

How long can a framework agreement last?

Under Directive 2014/24/EU, framework agreements generally may not exceed four years, except in duly justified exceptional cases, particularly for defence and security procurement. The framework agreement duration page covers the rules in detail, including the UK position under the Procurement Act 2023.

Can a buyer use a framework set up by another authority?

Yes, provided the original framework was established in a way that permitted other contracting authorities to use it, and those authorities were identified (or identifiable) in the original contract notice. This is the basis on which central purchasing bodies such as the Crown Commercial Service operate.

Do I need to re-tender each time I want work under the framework?

Not always. Whether individual call-offs require a mini-competition or can be placed by direct award depends on the rules set out when the framework was established. Single-supplier frameworks are typically direct-award; multi-supplier frameworks use either direct award based on ranked criteria or mini-competition.