Tendering can, on occasion, prove to be a complex beast. With lots of specific jargon and numerous types of tender agreements, it can be difficult to know just what you are getting yourself into sometimes. 

One such complexity in tendering is framework agreements. We occasionally get questions about these types of agreement, so we thought we would shed some light on the matter.

Framework agreements are 'umbrella agreements' that dictate the terms under which numerous individual contracts can be made during the period stated in the agreement. In this instance, the individual contracts are called 'call-offs' and typically the maximum period of such contracts is around 4 years.

Framework agreements tend to come in useful in cases where the tendering authority know that they are going to require a particular product or service, but they are unsure of the volume or timescales associated. A framework agreement can be set up that allows them to source products and contractors over a set period for things such as office equipment, maintenance services or consultancy services. 

In terms of public sector tenders and the Official Journal of the European Union (OJEU), framework agreements follow the normal regulations, whereby they must be listed in the OJEU if their value exceeds the EU threshold. In this instance, when the time comes to seek individual call-offs, no further advertisement is necessary in the OJEU.

Framework agreements typically prove useful for large or even multiple authorities who require a wide range of purchasing opportunities. It doesn't matter whether an authority is creating the framework agreement for themselves, or whether the agreement will act as an umbrella for a list of different authorities, as long as all parties are listed in the original agreement put out to the OJEU.

A good example of a framework agreement in practice would be that of UK business Buying Solutions. Buying Solutions acts as a central purchasing body who create framework agreements for use across the entire UK public sector. Buying Solutions is an Executive Agency of the Office of Government Commerce. 

When tendering, framework agreements should be considered just as any other tender notification would. If you want to be considered for a position as a supplier then you must respond to the framework agreement notification before the deadline in the OJEU. As with any tender, you will be considered against all of the criteria put forward by the tendering authority and contracts will be awarded as necessary.

Unlike straightforward tenders, a framework agreement might be awarded to just one supplier, or it might be awarded to a range of different suppliers. If the contract is awarded to one supplier, then the authority can call upon their services or supplies whenever they are needed. If numerous awards are made, two processes then come into play.

Firstly, if the authority are easily able to identify the most adequate and value for money contractor for a specific service or product, then they can award a particular contract to them directly without further competition. 

Alternatively, if it is not clear which contractor would be best for the job, a smaller competition is held between the suppliers who were contracted into the framework agreement. The results of the competition determine who will take that particular contract. 

Framework agreements are extremely useful for public sector bodies as it enables them to use services or seek suppliers only when they are needed, and it means that they don't have to submit numerous times to the OJEU and go through the full tendering process. On the other hand, 4 years can be a long time to be tied into a framework agreement. New suppliers or solutions many arise in that time that are not included in the agreement, and therefore cannot be used under the agreement. 

As a supplier, if you are included in a framework agreement, it pays to not sit back and think that you are sorted. In some instances, no purchases or contracts are actually fulfilled during the term of the agreement given that a need may not arise, so keep up the work tendering and looking for other business opportunities alongside.