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Procurement Process and Framework Agreements

Procurement Process and Framework Agreements

When going through a procurement process how do you ensure you are getting your framework agreements right?

What are framework agreements?

A framework agreement is a "contract" under the procurement regulations, but it is not a contract in the traditional sense. It is an agreement whereby a number of contractors are appointed to the framework, and the client may award specific contracts to any one of those contractors during the lifetime of the framework. However, there is no obligation on the client to do so.

What does framework agreements cover?

- A framework agreement covers the terms under which specific contracts are to be awarded.
- The individual contracts must not depart from the terms of the framework agreement.
- Specific contracts may be awarded directly to a contractor.
- A 'mini competition' can be held, whereby the contractors in the framework bid for a specific contract.

Do framework agreements need to be advertised under the procurement regulations?

Where the likely value of the services to be provided during the lifetime of the framework is over the relevant threshold, it must be advertised according to the procedures set down in the regulations. However, individual contracts awarded under the framework need not be advertised.

What are the requirements of a framework?

The minimum number of contractors within a framework should be three (provided there is sufficient interest) and the period of the framework agreement should be no more than four years.

Conclusion

Framework agreements can be useful in saving time and resources in procuring contracts separately. However, care must be taken when drafting a framework agreement as it must be forward thinking, covering all potential requirements of the client throughout its lifetime, which can be challenging.

If you are considering the benefits of a framework agreement, please contact our team if you'd like to discuss this in more detail.

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Authors

TC Young