Guidance for Using Framework Agreements

Guidance for Using Framework Agreements

Please remember that the University’s Financial Regulations and Procedures for Procurement should be complied with when making ‘call off’ purchases under framework agreements – see the following link for further details

Introduction

The setting up of framework agreements and their subsequent use is governed by the Public Contracts Regulations 2006.

Framework agreements are arrangements with one or more suppliers/providers which set out terms and conditions under which individual contracts (call-offs i.e. making purchases) can be made throughout the term of the agreement.Framework agreements can be concluded either with a single provider or with multiple providers provided that the number of providers is three or more where there are three or more providers capable of meeting your requirement.

The maximum duration of framework agreements is limited to four years, although longer periods may be applied in “exceptional cases duly justified, in particular by the subject” of the agreement.Call-offs are also limited to a maximum of four years as they are awarded “within the limits” of the framework agreement. It is possible, however, for a call-off to last beyond the expiry of the framework agreement to which they apply.

Using Framework Agreements

When awarding call-offs, the full procedural steps of the EU Directives do not need to be applied, however, the EU Treaty-based principles, including non-discrimination still apply. Whilst frameworks do not themselves create any contractual obligations, a call-off does. In placing a call-off contract with a supplier from a framework, your organisation will be making a commitment to purchase the specified goods/services from that supplier. There are two options available for the use of frameworks:

Option One: Apply the Terms of the Agreement

Where your requirements match the terms and/or specification of the framework (in the event of any query, you should clarify the situation with the organisation that established the framework), a particular call-off should be awarded without re-opening competition. The call-off should be awarded to the provider who is identified as the most economically advantageous tender based on the award criteria used at the time that the framework was established.You may choose to undertake this approach where you are utilising a framework agreement established by another organisation and the aggregated value of your requirement is of relatively low value.

Option Two: Hold a Further Competition

If your requirements do not match the terms and/or the specification of the framework, you should conduct a further competition. Whilst it is not permitted to substantially change the basic terms or specification of the framework, in running a further competition it is possible to supplement or refine the basic terms of the framework prior to making a call-off. Examples of where the information within the framework may be supplemented are:

• Delivery timescales;
• Invoicing/payment arrangements;
• Associated services, eg installation, maintenance and training;
• Quantity;
• Quality;
• Where the terms include a price mechanism e.g. discounts for volume.

When a further competition is held, all suppliers appointed to the framework that are capable of meeting the requirement must be invited to submit a tender. You must not limit the further competition to selected providers. A time limit for submitting the tender must be set and advised to competing suppliers. This time limit must be reasonable, taking account of the complexity of the requirement.

The call-off must be awarded on the basis of the framework award criteria and new criteria cannot be added, although the weighting may be varied to take account of a particular requirement. However, in adjusting the weightings, care must be taken to ensure that any such changes do not have an adverse effect on competition.

The embedded template below can be used as the basis for running a further competition. All Red Text in the template will require completion by the buying organisation. The template is only suitable for running paper based further competitions and e-tender/e-auctions should only be conducted if provision has been made to do so in the original contract notice.

In some instances, the organisation that has established the framework may have produced standard documentation for use in running further competitions and you should refer to any relevant guidance associated with the use of the framework.