What is a Framework Agreement? A Guide for Suppliers

A framework agreement is an agreement between one or more contracting authorities and one or more suppliers that establishes the terms for contracts to be concluded over a specific period. Price, quality, assortment, delivery, and other conditions can be fully or partially clarified in advance.

The framework agreement is often used when a public entity expects repeated purchases but does not know the exact quantity or timing at the time of signing.

A Framework Agreement is not the same as a Single Order

The framework agreement itself establishes the rules of the game. Individual purchases are made through a call-off. How a call-off is to be executed depends on the agreement and how the competition was structured.

With a single supplier, the contracting authority can normally award contracts within the agreement's fixed terms. With multiple suppliers, allocation can occur according to a specific key, direct call-off when terms are objectively established, or through a new competition (often referred to as a mini-competition) among the suppliers on the framework agreement.

What do Framework Agreements mean for Suppliers?

Being awarded a framework agreement can provide access to recurring assignments and a more predictable sales process. However, it is not necessarily a guarantee of a specific volume. Read the tender documents carefully for estimated value, maximum value, number of suppliers, award mechanism, and any purchasing obligations.

Suppliers must also be ready to handle call-offs quickly. In mini-competitions, deadlines can be short, and documentation, capacity, and prices must be kept up-to-date throughout the agreement period.

What should you check before submitting a tender?

• Which contracting authorities can use the agreement?
• Which goods or services are covered?
• How long does the agreement last, and are there options for extension?
• How are call-offs distributed among suppliers?
• Are volumes estimates or binding?
• What qualification requirements and contract terms apply?

Always respond to requirements as requested in the tender documents. A good solution is of no use if mandatory documentation is missing.

Framework Agreements in Proffi

Proffi can consolidate announcements and make them searchable by industry, geography, deadline, value, and contracting authority. Framework agreements should be specially marked, and users should be able to save searches and receive notifications about new competitions and relevant call-offs. The original announcement and tender documents should be the authoritative source.