UNCLASSIFIED A guide to buying through framework agreements Scope of this guide This guide is for anyone involved in developing a procurement strategy and provides an overview of the considerations for using framework agreements and how to buy from them. It focuses primarily on the process of calling off from an already established multi-user Framework Agreement, but many of the principles apply equally to single-user framework agreements. The guide has been written with the assumption that, unless otherwise stated, the full scope of the EU Procurement Rules apply1. This guidance, including the examples, is not intended as a substitute for project specific legal advice, which should always be sought by a contracting authority where required. Before you start If you are new to procurement you should first familiarise yourself with the following:  Introduction to Public Procurement (PDF, 994KB) is a guidance document which sets out the key concepts and principles of good procurement.  If you are considering setting up a Framework Agreement we recommend that you refer to OGC’s Guidance on Framework Agreements (PDF, 989KB). What is a framework agreement? A framework agreement is a general term for agreements with a provider, or providers, that set out terms and conditions under which specific purchases (call-offs) can be made throughout the term of the agreement. They are used for products, works or services where requirements are needed on a repetitive basis but where the exact quantities are unknown, e.g. stationery, food, ICT etc. They are particularly useful, because once a framework is established, the process for awarding individual call-offs is both faster and less costly than would be the case if the requirement was procured separately. The Public Contracts Regulations define a framework agreement as: "an agreement or other arrangement between one or more contracting authorities and one or more economic operators which establishes the terms (in particular the terms as to price and, where appropriate, quantity) under which the economic operator will enter into one or more contracts with a contracting authority in the period during which the framework agreement applies". There are essentially four categories of Framework Agreement: - Single Supplier Multi-Supplier Single User/Single Supplier Single User/Multi-Supplier Single User UNCLASSIFIED UNCLASSIFIED  Public body lets for its own  Public body lets for its own use   use  Quicker procurement Quicker procurement turnaround.-reduction in turnaround -Reduction in procurement cost for both procurement cost for both customer and suppliers. customer and suppliers. Used e.g. to get price  The requirement has been discount (but only if provided advertised and capable for in Framework terms and suppliers identified, meaning conditions).  fewer tenders to evaluate.  No need to negotiate terms Having several suppliers and conditions for each allows flexibility to cater for a requirement as those are range of requirements. agreed as part of the  No need to negotiate terms framework set up. and conditions for each requirement as those are agreed as part of the framework set up.  To maintain security of supply Multi-User/Single Supplier  Multi-User/Multi-Supplier  Let on behalf of a number of turnaround -Reduction in Buying Organisations such procurement cost for both as Buying Solutions, Member of PRO5, Firebuy  customer and suppliers.  The requirement has been etc. advertised and capable Quicker procurement suppliers identified, meaning turnaround.-reduction in fewer tenders to evaluate.  procurement cost for both customers and supplier. Multi-user  Having several suppliers allows flexibility to cater for a Used e.g. to get price discount (but only if provided  range of requirements.  No need to negotiate terms for in Framework terms and and conditions for each conditions). requirement as those are No need to negotiate terms agreed as part of the and conditions for each requirement as those are  Quicker procurement users e.g.A professional framework set up.  Can be used to leverage agreed as part of the greater price discount framework set up. through aggregation of Can be used to leverage expenditure. greater price discount through aggregated spend. UNCLASSIFIED  To maintain security of supply. UNCLASSIFIED Framework agreements set out the terms and conditions for subsequent call-offs but, unlike contracts, they usually do not place obligations on the procurers to buy anything. With this approach, contracts are formed only when goods, works or services are the subject of an accepted order under the agreement. Some confusion has arisen amongst departments who have been approached by private sector brokers or intermediaries claiming to offer better prices on so-called "frameworks" e.g. on energy prices. These are not EU compliant agreements. An EU compliant framework agreement can only be set up by a contracting authority or an organisation operating on their behalf (e.g. a Professional Buying Organisation). Contents     A guide to buying through framework agreements The case for using framework agreements Identify Need Checking for existing deals - which framework agreement is right for you?      Comparing Deals Calling off Post Award Top 10 tips for buying from Framework Agreements Ten common mistakes when buying through a Framework Agreement 1 "Procurement Rules" means Directive 2004/18/EC as implemented in England and Wales by the Public Contracts Regulations 2006. You do not need to follow the detailed guidance on call offs if you are calling off from a framework that covers Part B services only, but it would still be good practice to do so in order to achieve value for money. Frameworks including both Part A and Part B services which have been advertised as Part A should, for the purposes of calling off, be considered as Part A and you should follow this guidance even if the call-off itself is for a Part B service. UNCLASSIFIED