October 16, 2021

Why Use A Framework Agreement

Filed under: Uncategorized — dpk3000 @ 1:28 am

Executives with various procurement authorities include Crown Commercial Services, ESPO, YPO, etc. These are central purchasing bodies that deal with framework agreements for all or part of the UK public sector. 8. What are the benefits of framework agreements for both the buyer and the supplier? The main advantage of a contracting authority when using a framework agreement is that it does not have to go through the full OJEU process every time the requirements arise. If you have to go through the tendering process once instead of several times, the costs of the tender will of course be reduced. It also means that there is less downtime between identifying the need and meeting it, which is a significant advantage. Due to economies of scale, there is additional potential for savings for the purchasing body, which can incentivize suppliers to offer more competitive prices. Customers who only see frameworking as a convenient way to shorten the procurement process won`t reap any of the benefits of continuous improvement. A stop-start workload cannot foster the right environment for continuous improvement. A practical effect of a framework agreement is the freedom to award contracts without the need to re-tender and to apply the selection and award criteria. This alone will save all parties a lot of time and costs from repeated offers. But beware, frameworking is not a one-size-fits-all solution. Consider the scope of projects; What is a low/low risk for one authority may be a high/high risk for another authority.

If you do this early on, the local industry can evolve to meet your needs. As a general rule, a framework contract has a duration of 4 years. However, this is determined by the buyer. .