Call-Off Contract - Government Contracts & Frameworks

Overview of Call-Off Contracts

A call-off contract lets you purchase goods or services from a pre-approved supplier under an existing framework agreement.

Think of it as a template contract where many terms are already set. From a supplier or bidders perspective - a call-off is the next stage after being successfully awarded onto a framework. The framework agreement does not itself guarantee any work - however, once of the main routes of winning work from a framework is when there is a 'call-off'. When a public sector buyer chooses to use that procurement framework as a foundation for their specific needs. This is often called a mini competition.

As a buyer when you use a framework agreement, you can create call-off contracts without going through a full procurement process each time. This saves time and money for your organisation. One of the benefits of a dynamic framework or DPS is that a buyer can ensure the right suppliers are added prior to the 'further competition' which leads to the call-off contract.

Key benefits of call-off contracts:

• Quick and simple purchasing process
• Pre-negotiated terms and prices
• Legal protections already in place
• Reduced procurement costs

You can set up a call-off contract through two main methods:

1. Direct award - choosing a supplier straight from the framework
2. Mini-competition - asking framework suppliers to bid for your specific needs

The length of your call-off contract can extend beyond the framework agreement's end date. This gives you flexibility in managing longer-term projects.

Public sector organisations must publish information about call-off contract awards on Contracts Finder. This rule applies unless the contract value falls below certain thresholds (£12,000 for central government or £30,000 for other bodies).

You'll find call-off contracts especially useful for regular purchases or when you need to move quickly. The pre-approved supplier list means you can trust the quality and reliability of goods and services.

Framework Agreements Explained

Framework agreements create a structured way for public organisations to buy goods and services. These legal arrangements set rules and terms for future purchases between buyers and pre-approved suppliers.

There are thousands of framework agreements in the UK - it is a highly popular route to working with suppliers to ensure both compliance and value for money.

Establishing Framework Agreements

A framework agreement sets up specific terms and conditions that both buyers and suppliers must follow. You'll find these terms cover important areas like pricing, quality standards, and delivery requirements.

Public organisations can join existing frameworks or create new ones through a competitive process. The setup normally takes 3-6 months to complete.

Each framework needs clear:

• Selection criteria for suppliers
• Pricing structures
• Contract lengths
• Quality standards
• Service levels

Roles of Framework Agreements

Framework agreements help you save time and money in public procurement.

You can quickly make purchases through 'call-off' contracts without running a full tender process each time.

Your organisation gets:

• Pre-vetted suppliers
• Fixed pricing
• Standard terms
• Faster buying process

The agreements must follow UK procurement rules. Most frameworks run for up to 4 years, though your call-off contracts can last longer when needed.

Public bodies often use frameworks to buy common goods and services. This includes things like office supplies, IT equipment, and professional services.

Procedure for Call-Off Contracts

Call-off contracts follow specific steps under government frameworks, starting with the buyer's requirements and ending with a formal contract award.

Initiating a Call-Off

Your first step is to define your exact requirements under the framework agreement.

Create a detailed specification that aligns with the framework's scope and pre-agreed terms.

You must check the framework's specific rules and limitations. Some frameworks have minimum or maximum contract values.

The procurement documents need to include:

• Clear deliverables and timescales
• Performance measures
• Pricing structure
• Any special terms or conditions

Selecting Suppliers

You have two main options for supplier selection:

Direct Award

• Choose a single supplier when they clearly offer best value
• Use the framework's pricing and ranking information
• Document your selection reasoning

Further Competition

• Invite all capable suppliers to bid
• Set clear evaluation criteria
• Give suppliers enough time to respond
• Keep the process fair and transparent

Awarding the Contract

You must follow the framework's specific award criteria and scoring system.

Document all decisions and keep records of your evaluation process.

Send an award notice to the winning supplier. Include:

• Start and end dates
• Contract value
• Specific deliverables
• Performance standards

Complete all paperwork before the contract begins. Both parties need to sign the call-off contract using the framework's template.

Keep copies of all signed documents and share relevant details with your procurement team.

Regulatory Considerations

Government frameworks and call-off contracts must follow strict regulatory requirements to ensure fairness, transparency and value for money in public procurement.

Call-Off Contracts and the Implications of the Procurement Act

The Procurement Act 2023 gives contracting authorities clear rules for awarding call-off contracts under frameworks.

You must ensure your call-off process aligns with the Act's requirements.

The Act allows for both open and closed framework options. You can choose different call-off procedures based on your specific needs and procurement goals.

You need to document your decision-making process and demonstrate that you've achieved value for money when using framework flexibilities.

Key Considerations for Call-Off Contracts:

1. Before calling off a contract, it is essential to confirm that the framework agreement allows for the intended procurement. This includes checking the list of eligible public bodies and ensuring that the goods, services, or works fall within the framework's scope.
2. Ensure that the framework is still active and applicable. Frameworks have a maximum duration of four years, although exceptions can apply in certain circumstances. The Act also introduces the concept of open frameworks, which can last up to eight years and allow for new suppliers to join over time.
3. The total anticipated value of the call-off must be clearly stated in the framework documentation. For larger call-offs, it is important to verify that there is sufficient capacity within the framework's advertised value. Compliance with the terms and conditions of the framework is critical, especially concerning liability and risk allocation.
4. The Procurement Act allows for direct awards under certain conditions, such as when justified by a single supplier scenario. However, if multiple suppliers are available, conducting a mini-competition may be necessary to ensure fairness and transparency. The framework should outline the process for both direct awards and mini-competitions.
5. Contracting authorities must check the status of suppliers at the call-off stage to ensure they are not excluded or excludable. If a supplier becomes ineligible, they may be removed from the framework.
6. A Contract Award Notice must be published before entering into a call-off contract, with some exceptions (e.g., for specific defence and security contracts). Unlike the award of a framework, there is no mandatory standstill period for call-off contracts. However, publishing the notice is still essential for transparency and compliance.

You may also be interested in the Central Digital Platform (Find a Tender).

Understanding Procurement Regulations

You must publish information about call-off contract awards on Contracts Finder unless they fall below certain thresholds:

• Under £12,000 for central government
• Under £30,000 for non-central government and NHS organisations

Section 45 of the regulations specifically permits contracting authorities to award call-off contracts under frameworks.

Call-off contracts can be awarded with or without competition, but you must follow the framework's original terms and conditions as set out in the Public Sector Contract (PSC).

Your framework agreement should clearly state the procedures for awarding call-offs to ensure compliance with procurement regulations.

Executing Call-Offs from Frameworks

You have two main ways to execute call-off contracts from a framework agreement. You can either make a direct award or run a mini-competition among suppliers.

With direct awards, you select a supplier straight from the framework based on pre-agreed terms and conditions.

This works well when you know exactly what you need and which supplier offers the best value.

Mini-competitions let you compare offers from multiple framework suppliers. You'll need to invite all capable suppliers to bid and evaluate their responses fairly.

Key steps for call-offs:

• Review the framework terms and conditions
• Choose your award method (direct or mini-competition)
• Document your decision-making process
• Issue the call-off contract to the chosen supplier

The terms of your call-off must align with the original framework agreement.

You can add specific requirements, but they must stay within the framework's scope.

Call-off contracts can extend beyond the framework's end date. Make sure you keep proper records of the procurement process.

You don't need to publish award notices for call-offs in the Find a Tender Service (FTS). The process is simpler than running a full tender.

Remember: Each framework has its own rules and procedures. Always check the specific guidance for your chosen framework before proceeding.

Rights and Obligations

Call-off contracts create specific legal duties for both buyers and suppliers to ensure smooth delivery of goods and services through framework agreements.

Buyers' Responsibilities

You must clearly define your requirements when creating a call-off contract. This helps suppliers understand exactly what they need to deliver.

You need to maintain regular communication with your chosen supplier and provide timely feedback on their performance.

Your organisation must make payments according to the agreed schedule in the contract terms.

Late payments can harm supplier relationships and may result in service disruptions.

You should monitor the supplier's compliance with social value commitments outlined in the framework agreement.

Suppliers' Compliance

Your company must deliver goods or services that match the specifications set out in the call-off contract.

Any deviations need prior approval from the buyer.

You need to maintain adequate insurance coverage as specified in the framework agreement. This protects both parties from potential commercial risks.

You must provide regular progress updates and performance reports to the buyer. This helps track project milestones and identify any issues early.

Your organisation should keep detailed records of all deliverables and maintain transparency in pricing and costs throughout the contract period.

Managing Risks and Performance

Risk management plays a vital role in call-off contracts under government frameworks. You need to identify both framework-level and contract-specific risks before proceeding.

The framework provider handles common risks related to goods and services at the framework agreement level. You must then assess additional risks specific to your call-off contract.

Key Commercial Risks to Consider:

• Contract performance failures
• Supply chain disruptions
• Cost overruns
• Quality issues
• Delivery delays

Your call-off contract should clearly define performance metrics and monitoring methods.

Set specific targets and establish regular review meetings with your supplier.

Insurance requirements form a crucial part of risk mitigation. Make sure your supplier maintains adequate coverage throughout the contract period. Review insurance certificates annually.

You can modify liability clauses in your call-off contract to address specific risks not covered by the framework agreement. Always document these changes properly.

Performance monitoring tools help track supplier delivery against agreed standards. Create a simple scorecard to measure:

• Service quality
• Timeline adherence
• Cost control
• Issue resolution
• Compliance requirements

Keep detailed records of all performance issues and corrective actions. This data helps manage current contracts and informs future procurement decisions.

Thornton & Lowe's Procurement and Tender Preparation Support

At Thornton & Lowe, we offer support to both public sector buyers and suppliers through our outsourced procurement consultancy services.

For Public Sector Buyers:
We assist in developing effective procurement strategies and improving supplier engagement. Our aim is to help buyers achieve value for money while ensuring compliance with regulations.

For Suppliers:
We provide guidance on tender writing and responding to tenders, frameworks, and call-off contracts. Our training sessions equip suppliers with the necessary skills to compete effectively in mini competitions.

By working with both buyers and suppliers as a public sector supply chain specialist, Thornton & Lowe helps to simplify the procurement process and enhance outcomes for all parties involved. We always ensure no conflict of interest and have a clear ethical business commitment.

Specialised Contracts and Services

Government frameworks enable specialised purchasing of technology and social value focused services through streamlined procurement processes that meet public sector requirements.

Contracts for Technology Services

Mobile voice and data services require careful consideration in public sector contracts.

You'll need to outline specific service levels, data allowances and coverage requirements in your call-off agreements.

When procuring tech services, you must specify:

• Network coverage requirements and minimum service levels
• Data security and information handling standards
• Device specifications and replacement schedules
• Support and maintenance expectations

The call-off terms should match the framework's core requirements while adding your organisation's unique technical needs.

Social Value in Procurement

Social value plays a vital role in modern public sector purchasing.

Your call-off contracts should include clear social value commitments and measurement criteria.

Key social value elements to include:

• Local economic benefits and job creation targets
• Environmental sustainability requirements
• Community engagement expectations
• Skills development and training commitments

You'll need to set specific, measurable social value outcomes in your contract terms.

These should align with both the framework agreement and your organisation's social value priorities.

The value delivered must be relevant to the contract's core purpose and proportionate to its size and scope.

Transparency and Reporting

Proper transparency in call-off contracts requires specific documentation and publishing requirements. You must follow strict reporting guidelines to maintain compliance with UK procurement regulations.

Publishing Award Notices

You need to publish contract award notices for all call-off contracts from framework agreements.

The notice must include key details about the awarded contract and successful supplier.

Contract award notices should be published within 30 days of the contract being awarded. This applies to contracts above the relevant thresholds set out in PPN 06/19.

For each notice, you must include:

• Contract value
• Winning supplier details
• Duration of contract
• Description of services/goods
• Date of award

Utilising Contracts Finder

You must publish your call-off opportunities on Contracts Finder when they exceed £10,000 for central government or £25,000 for wider public sector organisations.

Key information to include on Contracts Finder:

• Framework reference number
• Procurement procedure used
• Contract start and end dates
• Expected value range

Your tender documents need to be accessible through Contracts Finder.

Make sure to upload all relevant files in an easy-to-find format.

Remember to keep your published information up to date.

Any significant changes to contract terms or values require updates on Contracts Finder.

Best Practices for Procurement

When using call-off contracts through frameworks, you need to follow clear procurement steps for the best results.

Start by checking if the Crown Commercial Service (CCS) has a suitable framework for your needs.

Make sure you read and understand the framework terms before starting. These terms set the rules for both the framework itself and any call-off contracts you create.

Key steps for successful procurement:

• Review all pre-agreed terms and conditions
• Check supplier credentials and capabilities
• Compare prices and service levels
• Document your selection process
• Keep clear records of decisions

You can use different methods to select suppliers from a framework. Some organisations use a rotation system, while others rank suppliers based on specific criteria.

The procurement process must be fair and transparent.

Keep detailed records of your supplier selection process to show you followed the proper procedures.

Consider working with the CCS team for advice on complex services. They can guide you through framework options and help you make informed choices.

Watch out for framework expiry dates and renewal requirements.

Plan your procurement timeline to avoid gaps in service delivery.

Always check that your chosen framework complies with the latest Procurement Act 2023 guidelines. This helps protect your organisation and ensures legal compliance.

Frequently Asked Questions

Call-off contracts allow organisations to purchase goods and services under pre-arranged framework agreements. These contracts provide flexibility while maintaining set terms and conditions.

What is the distinction between a call-off contract and a framework agreement?

A framework agreement sets up the overarching terms between suppliers and buyers. It creates the foundation for future purchases.

A call-off contract is the actual purchase made under the framework. It represents a specific order with defined quantities, prices, and delivery terms.

Can you provide an example of a call-off contract in action?

The Crown Commercial Service uses call-off contracts to buy office supplies. They select a supplier from their approved framework and place an order for 1,000 pens at an agreed price.

The supplier delivers the pens according to the framework's terms, while the specific quantity and delivery date come from the call-off contract.

How does a call-off contract operate within the construction industry?

Construction firms use call-off contracts to secure materials at fixed prices. A builder might arrange multiple deliveries of bricks throughout a year-long project.

Each delivery becomes a separate call-off, but the price stays stable under the framework terms.

What are the primary advantages and disadvantages of call-off contracts?

Call-off contracts save time by avoiding repeated tender processes. You can order quickly when needed without new negotiations.

These contracts can limit flexibility if market prices drop below your agreed rates. You might miss better deals outside the framework.

In procurement, how does a call-off order differ from a purchase order?

A call-off order works within an existing framework agreement. It references pre-agreed terms, conditions, and prices.

A purchase order stands alone as a single transaction. It requires fresh negotiation of terms for each purchase.

What are the defining characteristics of government framework agreements?

Government frameworks must follow strict procurement rules. They typically last up to four years and include multiple suppliers.

These agreements need clear pricing structures and service levels. They must be fair and open to all qualified suppliers.

Public sector bodies can join existing frameworks to access pre-approved suppliers and terms.