Framework Agreements: Everything You Need to Know

"Are you on a framework? A procurement framework? A framework agreement we can call-off from?"

If you are being asked this and wondering - "What is a framework agreement?" - then this guide is for you!

What Is a Framework Agreement?

A framework agreement or framework (when talking to public sector folk) is pretty much an approved suppliers list. It's extremely beneficial to be on approved suppliers lists, especially when your target clients spends millions each year with these approved suppliers. So, if you are business which supplies the UK public sector - or wants to - a framework agreement is just becoming an approved supplier! That's it. More or less...

A framework is a type of contract that is commonly used as a multi-supplier agreement.

Now, because the public sector have to be accountable for what they spend - they need to follow strict procedures when setting up a framework and advertise it. This may seem like a nuisance but once you understand frameworks and bid writing - you'd wish private sector openly advertised their approved lists in the same way!

Another quick win for you - the vast vast majority of framework agreements are advertised on Find a Tender.

How Do Framework Agreements Work in Practice?

Here is an example of how framework agreements work in practice: A Council has a range of works to be completed by a group of suppliers, contractors or service providers. Setting up a framework agreement will be an efficient way to work, without having to go through the tender process each time. In this case they set up their own framework agreement for what they need.

Similar to a tender for a contract or ITT, the framework tender is usually a mix of quality and price. The buyer/procurement team will then review all framework bids and approve a specific number of bidders to be awarded a place on the framework.

Then, when the buyer has a requirement or specific project, they will usually run a mini competition or call off, which reduces the timescales and complexity of awarding specific works.

Alternatively, some frameworks allow a direct award, so no mini competition or call offs. Work could be awarded to a bidder based on a geographical lot which has already been agreed as part of the framework agreement. Some frameworks also award based on performance, which will be measured throughout the partnership.

Some frameworks like Crescent Purchasing Consortium work more in the education sector - so if you are supplier to schools - it is certainly one to monitor! CCS (Crown Commercial Service) is a key one in the UK for all buyer types. It offers reassurance. If you are going to be asked what framework you are on - CCS is always a very nice answer for a public sector body to here.

Advantages of a Framework Agreement

From the bidder/suppliers perspective:

• A framework agreement is a great way to work with public sector bodies. Once approved and procurement compliant you will receive additional opportunities that the wider market will not receive.
• It's quick and compliant route for the public sector buyer to show they are following best practice by working with you, which offers you a great sales benefit.
• A longer term route to market - it's largely in place for 4 years, but now with the Procurement Act, these agreements could be in place for much longer.

From the buyers perspective:

• A reduction in time spent going through a tender process for each individual aspect of work can offer significant benefits for the buyer.
• Compliance! Being able to demonstrate and justify your decision making and best practice.

Disadvantages of a Framework Agreement

From the bidder/suppliers perspective:

• Many bidders invest time and money to be awarded onto a framework and then potentially not receive any work through them. So, first of all it is important to weigh up if it is right for your business.

• Once awarded a place on a framework, you can’t just wait or expect the phone to ring. You still need to work hard, to get your share of it! This may involve networking at organised events for suppliers, or traditional sales and marketing – but the benefit being, you are already approved to work with them.

From the buyers perspective:

• Some still believe if you want a fully bespoke solution there needs to be a full scale tender. We disagree with this as often with the right planning and pre-engagement of suppliers, and choosing the right framework you can create a call-off which is perfect for your needs.
• Fees! A framework management organisation (as noted above) charges fees - anywhere from 1 to 5% of the contract value. If the public sector buyer has in-house procurement capacity, why use these agreements? - it will simply incur additional costs? This is true. However, for urgency and speed it is often required. There is also the argument that with a wider established framework agreement - they will have larger economies of scale and therefore will be cost neutral or create savings for the public sector buyer.

How Thornton & Lowe Can Support Your Success with Framework Agreements

Winning a place on the right framework agreement can open doors to consistent contract opportunities, but securing a position requires a strategic approach: from selecting the most suitable framework to ensuring compliance and maximising your success, Thornton & Lowe provides expert support at every stage.

• Framework Selection & Strategy – Helping you identify and apply for frameworks that align with your services, sector, and growth goals.
• Bid & Tender Writing – We write high quality submissions to secure a places on competitive frameworks and achieve the best possible quality scores.
• Compliance & Readiness – Ensuring you meet all framework requirements, from financial thresholds to policies and certifications.
• Maximising Framework Success – Advising on how to use frameworks as part of your wider sales and business development strategy, ensuring you convert opportunities into revenue.

Whether you’re applying for your first framework or looking to improve your success rate, our team ensures you approach the process with confidence

Procurement Rules for the Public Sector

Public sector buyers aren't spending their cash. It's ours! So they need to spend it carefully. This has led to many procedures and rules to ensure an open, fair and transparent purchasing (or procurement) process.

Typically, if a housing association or Local Authority for example, spend £10k or under on something, the rules are a little more relaxed. They still have to spend carefully and get 3 quotes (for example) but they may not advertise and follow a formal tendering procedure. However, for most public sector purchases - they will likely spend more. Even something as small as stationery, if they spend over £50k per annum (as a guide) they really need to run a full tender and advertise it openly. Now imagine doing this across every area of spend - from cleaning to consultants, to IT to maintenance. It would cost them more in procurement time than it would the cost to purchase the end product.

The more efficient route is an approved suppliers list who they know they can easily and quickly work with. If there was ever such a magical procurement tool! Turns out there is and you got it - it's a framework agreement.

To set up a framework agreement, they will need to advertise and still ensure it is open and fair. Once suppliers are awarded onto a framework or approved on the suppliers list - they will be able to compete for specific projects and put forward a quote (this is often called a call-off or mini competition). Some framework agreements are set up which also ensure pre-agreed pricing as well as service levels so therefore may allow for 'direct award' from the framework. This means no further competition. Many businesses use this approach as part of their business development process.

If you are a supplier it is good to be on a framework agreement. There is a different type of framework agreement also called a dynamic purchasing system (DPS) or now (thanks to the Procurement Act) - a dynamic market. Think of this also as a framework agreement but often easier to win a place on as it is continually open to new suppliers. A key difference from a supplier perspective is that often a DPS does not allow direct award, while a framework agreement is more likely to have this as an option.

You may also like:

The Ultimate Guide to Selling into the Public Sector which explains more about tendering thresholds and decision making for procurement teams working in the public sector.

The National Audit Office: Procurement & Framework Assessment

The National Audit Office report on "Efficiency in Government Procurement of Common Goods and Services" provides us with some more additional context and guidance to what is likely going to change in framework agreements from 2025 and beyond.

It noted that the public sector spent around £393 billion on goods and services in 2022-23, with £125 billion dedicated to common goods and services! This substantial market offers many opportunities for suppliers, especially within the framework agreements managed by the Crown Commercial Service (CCS), for example, which oversaw £25 billion in spend through 238 frameworks.

The report highlights the increasing use of frameworks, with 72% of large contracts procured through them in 2021-22, up from 43% in 2018-19. This trend underscores the importance of frameworks in achieving economies of scale and competitive pricing.

However, suppliers should be aware of the government's push for greater aggregation of demand and collaborative procurement. This approach aims to maximise purchasing power and achieve better value for money, making it vital for suppliers to offer competitive pricing and innovative solutions. Therefore, if you want to win contracts in the public sector, frameworks are a key tool. Also, if less frameworks are likely to be produced now - monitoring them and ensuring a successful and compliant submission is more important than ever!

Third Party Framework Creation and Management

Many third party organisations are created for UK public sector bodies to use. This can be really beneficial for organisations who lack the expertise or capacity to compliantly and effectively buy-in (or procure) their own products and services. You will likely have heard of some of these, such as CCS, Fusion21, YPO, CPC, NHS SBS for example. Our frameworks page lists them all, as well as providing a live feed to new framework opportunities pulled from Tender Pipeline - our free tender monitoring tool.

These organisations are a mix of public, private and third sector organisations. A private sector business can only set up a framework agreement by doing so with a 'partner' who is a contracting authority (a public sector buyer). They will set up framework agreements and promote them to the wider public sector such as schools, MATs, NHS Trusts, Universities and local and central government for example. Each time they have a new public sector customer who wants to use the framework - it is a win for the approved suppliers who get a chance to compete for it!

They charge fees either to the supplier or to the public sector buyer as part of their management service and some have better reputations than others, and will therefore make a better sales tools - we are happy to guide you through the options with our Bid Mentor package, which starts at £750 per month and includes full tender and framework monitoring, as well as monthly guidance, planning and strategy to help our clients access the public sector.

The 2023 Procurement Act Impact on Framework Agreements

The UK's Procurement Act 2023 introduces significant changes to the way public sector organisations purchase goods and services through frameworks and dynamic markets.

Frameworks under the Procurement Act

The Procurement Act simplifies the types of frameworks available, allowing only open or closed frameworks.

Open frameworks permit new suppliers to join at predefined points, at least once during the second and third quarter of the framework term. This flexibility ensures that buyers have access to a diverse and competitive supplier base. Closed frameworks, on the other hand, do not allow new suppliers to join after the initial setup.

The maximum term for frameworks under the Act is 8 years, including any extensions. However, closed frameworks are limited to a maximum of 4 years. Buyers should carefully consider their requirements and market conditions when deciding between open and closed frameworks.

Call-off Contracts and Direct Awards

Buyers can make direct awards under a framework if the terms and conditions are sufficiently precise and complete. This streamlines the procurement process and reduces administrative burdens. If a direct award is not possible, buyers must conduct mini-competitions among the suppliers on the framework.

Mini-competitions follow a process similar to open procedures, with suppliers invited to submit bids evaluated against set criteria. Standstill periods are not required for direct awards or mini-competitions within frameworks, further simplifying the process.

Dynamic Markets: A New Approach

The Act introduces dynamic markets, replacing Dynamic Purchasing Systems (DPS). Dynamic markets are always open to new suppliers throughout their term, with no maximum term limit. This flexibility allows buyers to access a constantly evolving supplier base and encourages innovation.

Suppliers can participate in multiple categories or lots within a dynamic market, providing greater opportunities for engagement. Contracting authorities must assess each supplier's indicative tenders before admitting them to the market, ensuring a high-quality supplier base.

Notices for dynamic markets must be published on the Find a Tender service, promoting transparency and fair competition.

Framework Agreement Submission Requirements

Responding to a framework agreement can be similar to responding to a tender. However, tender submissions will require your specific approach, solution and price, compared to a framework, which requires a more general overview of your 'typical' solution, for example. To highlight these differences, we've created a comparison table that outlines the key elements typically asked of bidders in each scenario.

As the table illustrates, a framework agreement bid requires suppliers to demonstrate their broad capabilities, flexibility, and capacity to deliver a range of goods or services over an extended period. In contrast, an ITT bid as part of a tender submission is more focused on meeting exact specifications, timelines, and deliverables. If you take a 'framework submission' approach to a specific tender it is unlikely you will be successful. The tender feedback will be - "too generic".

Types of Framework Agreement in Procurement

In the public sector, there are several main types of framework agreements:

• Single supplier framework agreements: This type of framework agreement is established with a single supplier who has been selected through a competitive tendering process. The terms, conditions, and prices are agreed upon in advance, allowing buyers to place orders directly with the supplier without further competition.
• Multi supplier framework agreements: In this type of framework agreement, multiple suppliers are appointed to the framework following a competitive tendering process. These are what most businesses bid for. The framework agreement sets out the general terms and conditions, but the specific terms, such as price and quantity, are established through a secondary competition among the suppliers on the framework.

However, there are then DPS or dynamic markets, as noted above, which aren't framework agreements but very similar.

Ok, if we are covering 'everything you need to know'... let's also take a quick look at private sector 'framework agreements'.

Private Sector Framework Agreements?

In the private sector, organisations use similar arrangements, such as approved supplier lists. Companies can streamline their procurement process, reduce risk, and ensure consistent quality of goods and services.

As private sector organisations aren't regulated in the same way - how they manage these lists and select suppliers is really up to them. They will still want to ensure competition of course and we are seeing more larger private sector organisations mirroring many procedures from the public sector!

Framework Agreement FAQ's

What’s the difference between a framework agreement and a contract?

A framework agreement rarely provides any specific commitment in terms of project and value of works that you have won/secured. It is more focused around being an approved supplier, allowing you to be awarded work during the period the agreement lasts. A contract is usually a specific fee, with project scope and timelines allowing you to quote and tailor your product/service for the specific job at hand.

Is a framework agreement legally binding?

It is a legally binding contract in terms of the bidder carrying out the works in line with the agreed terms and conditions documented. However, it rarely provides a commitment to providing work.

How long can a framework be?

Typically, a framework agreement lasts for 4 years. However, this is determined by the buyer. They can range between 2-10 years.

Is a framework agreement different across sectors/industries?

Public Sector framework agreements can be slightly different depending on the sector and service, however the same rules apply across the board. How buyers award work can also vary depending on what the framework is for. For example a service based opportunity may prove difficult to allow a direct award, so the framework would need to be set up to allow for mini competitions, whereas a product may be offered via a direct award.

All UK public sector frameworks will be in-line with the Public Contract Regulations, which are being superseded by the Procurement Act. This allows every relevant business the opportunity to bid to be on the framework and be a preferred supplier.

How can I find framework opportunities?

Thornton & Lowe have purpose built software, Tender Pipeline, that features all public and private framework agreement opportunities. You can quickly and easily search for opportunities and sign up to receive relevant alerts, supporting you to be well prepared in advance. At the bottom of this page you can see live framework agreements which are provided by Tender Pipeline.

Framework agreements can last for anything between 2-10 years so it is important that you stay up to date and are aware of future opportunities at the earliest stage. Once approved and successfully awarded onto their framework you will receive mini competitions and therefore have access to a much larger group of clients.

How do I win a framework agreement?

You should approach a framework as any other tender or contract opportunity. You should invest time and resources to fully understand it, including what the buyer wants and expects, appreciate your competitors strengths and weaknesses, and how you can seek competitive advantage.

We also advise to consider what compliance elements may be required so that you can plan for them. For example; what training will your staff need? Does the business need additional certifications? What experience and evidence is relevant and can you start planning for it, prior to the tender being advertised. Planning is key!

If you require additional advice, or bid writing services contact one of our experts today and discuss your requirements.

There are a lot of framework agreements suitable for my business. How do I choose which is the best to bid for?

This will come down to your bid-no-bid decision. For many of our clients we will be able advise and guide on which frameworks have more demand than others, so are worth investing time into getting approved on.

Some frameworks are often used as a route to push existing clients through - to ensure compliance but may be less useful at bringing new customers to you! Lots to consider and we are happy to advise.

Is a public sector framework agreement the same as a government tender?

If you are familiar bidding for government tenders, you should feel more comfortable when trying to win a place on a public sector framework agreement. Frameworks opportunities can prove to be a useful tool for businesses looking to grow their businesses government tenders. However, they will not be offering you a commitment; see it more as an approved suppliers list.

We are on a government framework, but I still have not won any work. Am I doing something wrong?

Over 70% of public sector spend with suppliers goes through government framework agreements, so they are critical to understand and get right. They should be forming part of your public sector bid strategy. The Ultimate Guide to Selling into the Public Sector’ will really help your better understand how to make the most from the frameworks you are on.

Usually once a framework is awarded there is further engagement and events with suppliers; have you had these? If not, send a message to the government procurement team or framework management organisation. We provide an overview of key national framework organisations within our central framework agreement page. You need to explain you have been on the framework for X months but have not had any opportunities or that you are struggling to win work. They will be able to provide you advice on how others use their frameworks in order secure government contracts and tenders.

If you are not winning mini competitions or call-offs from a government framework agreement it could be you need to improve the bid you are submitting. They are still a competitive exercise and require a compelling and persuasive bid. Take a look at our ’10 Ways to Improve Tender Response Scores’ which could really help your return on investment for government tenders, public sector bids, framework wins and the associated further competitions.

Many businesses make the direct award process part of their public sector engagement and sales strategy. By building up relationships and then offering a compliant procurement solution there is potential to avoid having to submit a further public sector bid.

Frameworks such as G-Cloud are well known for fully using this benefit. This is focused on cloud-based software and associated consultancy; however, we often advise clients on suitable options based on their specific sector.

I have a public sector client who wants to work with us but can’t because of the government procurement process. What options do I have?

This is a very common challenge and frustrating for both parties involved. Quite often they will ask what frameworks you are on to assess whether there are any quicks which could a direct award from a public sector framework agreement or even a direct award, so therefore no further competition! Which is of course the perfect solution if you are a supplier.

If they haven’t asked but you are on a government framework, which they could use it is important to put this option forward. If you aren’t on a framework now and depending on the timeframes there could be a suitable option for you to discuss with them and quickly bid for – it’s always worth a look. We provide a vast array of details and framework options in our frameworks blog. Frameworks are open once and then typically closed for 4 years, however, a dynamic purchasing system (DPS) can often provide the same benefits as a framework but continually open, or regularly re-opened to new suppliers. For more details on DPS agreements and how they can be used by public sector suppliers as a tool to win government tenders, can be found in our dedicated DPS blog.

If there is concern over the use of a framework by your public sector client and they have committed to a bespoke and full procurement exercise the preparation can take anything from a few months to well over a year for them to ensure they are ready to advertise the requirement. Quite often they will need your expertise as the incumbent supplier in order to create this government tender pack. Including TUPE information, specifications, measurements, mapping, satisfaction figures etc. As well as wider areas such as challenges relating to the contract delivery and the associated risks. This is an excellent chance for you to influence the tender requirements, specification, prior to the formal tender or contract notice, advertising the tender. This is the public sector procurement team’s market assessment stage and an important part of their procurement process. Your job is to work closely with them, ensure as far as possible it is a good fit for your business when the government tender is advertised. Including questions being asked but also pricing frameworks and sustainable routes for managing inflation for example within the contract.

While this procurement preparation is taking place, and as the incumbent supplier it is critical you start preparing for your upcoming public sector bid now. Collating case studies, proposing initiatives which add value for the client and also create evidence to support your bid. Collate and report on KPIs and ensure any performance concerns are remedied as far as possible.

Live UK Framework Agreements