Using Framework Agreements

Formally, it is an agreement between one or more contracting authorities and one or more suppliers which establishes the terms (in particular the terms as to price and, where appropriate, quantity) under which the supplier will enter into one or more contracts with a contracting authority in the period during which the framework agreement applies. Such framework agreements set out the terms and conditions for subsequent call-offs but place no obligations, in themselves, on the procurers to buy anything. With this approach, contracts are formed under the Regulations only when goods, works and services are called off under the framework agreement.

In layman's terms, a framework agreement sets out the overarching terms and conditions (such as maximum pricing or minimum service levels) that users of that framework agreement can expect to receive after they have entered into their own (entirely optional) contracts with approved suppliers to the framework agreement. Whilst these terms and conditions are set at framework level, there is usually flexibility (within reason) for users to adapt the framework agreement to meet their own particular requirements when 'calling off' (or contracting with a specific supplier). The method of call-off will vary from agreement to agreement, so do check the Buyer's Guide on HE Contracts

Framework agreements are not contracts and there is no obligation on members to use them. LUPC framework agreements are only open to members of consortia named in the original tender contract notice, for compliancy with the Public Contracts Regulations. Our framework agreements usually last for four years before being re-tendered.

Buying through multi-user framework agreements is a good idea because:

  • Framework agreements are a pre-competed route to market providing a vehicle to centralise procurement spend
  • Shared procurement expertise and resources
  • Shared risk and contract management

Framework agreements reduce administrative burden:

  • Time and cost compared to running a full procurement procedure each time (and helps to ensure legal compliance).
  • The requirement has been advertised and capable suppliers have been identified through competitive procurement, so at mini-competition there may be fewer tenders to evaluate for each requirement - particularly if the framework agreement is divided into distinct lots. 
  • At mini-competition it should be easier to compare tenders, particularly where the framework agreement is divided into distinct lots, because the products and services making up those lots will normally have been defined and categorised when the framework agreement was established.  
  • Flexibility: use of framework agreements is not mandated and authorities are free to use framework agreements where they provide value for money or to go elsewhere if they do not (but when taking into consideration the potential savings of going elsewhere you would of course need to factor in the potentially considerable cost of running your own procurement exercise).
  • Security of supply (on multi-supplier agreements) - if one supplier on a framework agreement runs into difficulty there would still be other suppliers who are capable of delivering the requirement.

Framework agreements aggregate demand:

  • Larger volumes are more attractive to suppliers and can achieve lower unit costs
  • Smaller organisations working together will gain benefits usually only achievable by large organisations
  • Lower bid costs are incurred by suppliers, and passed on to buyers
  • Opportunities to standardise goods, services and operations across framework agreement users to further reduce costs
A framework agreement will generally have one, three or more suppliers. Within the terms and conditions set at framework level, there is usually flexibility (within reason) for users to adapt the framework agreement to meet their own particular requirements when 'calling off' (or contracting with a specific supplier).
Users of framework agreements award 'call-off' contracts against the framework agreement to approved suppliers. Our contracts database, HE Contracts, includes all the information you need on how to do this - the best place to start is with the agreement Buyer's Guide. The 'call-off' may involve carrying out a mini-competition. LUPC will provide advice and support to any Member wishing to use a framework agreement, including at all stages of a mini-competition.
When accessing a multiple-supplier framework agreement, organisations have the option of undertaking a further- or mini-competition if not calling-off directly from the framework agreement. The rules for further, or "mini" competitions may differ from agreement to agreement, so it's important that you follow the instructions set out in the Buyer's Guide on HE Contracts or speak to the relevant LUPC Category Manager.
Yes - the Public Contracts Regulations do allow the upgrading of products on a framework agreement provided these are within the scope and specification of the original tender competition.
LUPC has published its Responsible Procurement Strategic Plan, which contains information about our approach to responsible procurement and our plans for the future. We also publish an annual Slavery and Human Trafficking Statement under Section 54 of the Modern Slavery Act 2015
Depending on the nature of the framework agreement, an increasing number of framework agreements open to LUPC members include specific instructions stating the method and degree to which participating organisations are permitted to vary the weightings of the original award criteria. If in doubt, please do contact the relevant LUPC Category Manager for advice.

The Directives state that creating ‘frameworks within frameworks' by selecting 2 or 3 approved suppliers either with or without some form of due process and then simply re-opening competition for each requirement should be avoided. You may, however, sub-divide your requirements at the time of competition and appoint a ‘specialist’ following the previously described guidelines. In IT for example, an organisation could request separate bids within their specification for low-spec lab PCs, high-spec workstation-class machines, low-energy footprint PCs and ‘all-in-one’ solutions.

Equally and provided they are separately specified up front, an organisation may create a single mini-competition using date-based requirements that leads to for example, one supplier winning business for an early summer roll-out but then another for a separately specified autumn-time delivery.

Our understanding is that you are able to take reasonable account of the cost of change into your decision process. The organisation would have to be quantifiably certain that the figure arrived at can be fully justified and have the calculations ready at the start of the process should it ever come into question. The most prudent line would be to include the figure within the mini-competition document to seek avoidance of a challenge around the introduction of additional evaluation criteria at a later stage and this influencing the final decision. Doing so may inevitably reduce the appetite of bidders to win the business and the incumbent may feel they don't have to sharpen their pricing model quite so tightly to retain the business. It would therefore be advisable to weigh up the pros and cons of its inclusion very carefully before commencement.
Because our members enter into a contract with a supplier when calling-off from our framework agreements, we always ask members to try to resolve any difficulties directly with the supplier in the first instance. We find this to be the best way to build a positive relationship. However, there are occasions when reaching a resolution is not possible and that’s when LUPC can help. Call or email us and we will put you in touch with the right professional who will be able to help you.


LUPC staff are very happy to talk you through the use of framework agreements, and the various ways to call-off from them. As this process varies from agreement to agreement, we recommend you read the framework agreement Buyer's Guide, available on HE Contracts, or speak to the relevant LUPC Category Manager.