Procurement procedures
Framework agreement
Written by Justin Cesman, CEO of Skim. Last reviewed:
- Definition
- A framework agreement is a multi-year arrangement between one or more public sector buyers and one or more suppliers that sets the terms — pricing, quality, delivery — for contracts awarded during its life. A framework is not itself a contract for work; the individual call-off contracts placed under it are.
Key takeaways
- A framework agreement pre-approves suppliers; it does not guarantee any work or revenue — only the call-off contracts placed under it do.
- Most public sector frameworks run for a maximum of four years (up to eight for defence and utilities, and for the new open frameworks under the Procurement Act 2023).
- Work is awarded from a framework two ways: direct award (by ranking or set criteria) or a further competition / mini-competition among appointed suppliers.
- Closed frameworks lock the supplier list after appointment; open frameworks, new under the Procurement Act 2023, let suppliers join at intervals — a structural win for SMEs.
- Winning a framework place compounds: one bid can generate years of call-offs, which is why experienced bidders treat framework rounds as their highest-leverage pursuit.
How it works
A framework sets the rules — pricing mechanisms, quality standards, delivery terms, and the legal template — under which individual call-off contracts are placed as demand arises. Think of it as a pre-approved shortlist: once you are appointed, buyers can award you work without running a full procurement each time.
Frameworks are single-supplier (all work to one provider) or multi-supplier (the buyer chooses between several appointed suppliers). On a multi-supplier framework, call-offs are awarded either by direct award — the buyer selects a supplier using pre-set criteria such as ranking or price, with no further competition — or by further competition, a mini-competition where appointed suppliers bid for a specific requirement under the framework's pre-agreed rules. The framework document specifies which method applies and when.
For SMEs, a framework place transforms the pipeline: instead of chasing one-off tenders, you sit in a pool that generates repeat call-offs over years. The trade-off is a heavier upfront bid — you are competing for long-term access, not a single job.
Framework agreement vs dynamic purchasing system / dynamic market
| Feature | Closed framework | Open framework (PA 2023) | DPS / Dynamic market |
|---|---|---|---|
| New suppliers can join after launch? | No — list locked at appointment | Yes — at set intervals | Yes — at any time, if criteria met |
| Maximum duration | 4 years (8 for defence/utilities) | Up to 8 years (must reopen within first 3) | No fixed maximum |
| How work is awarded | Direct award or further competition | Direct award or further competition | Competition among qualifying members |
| Best suited to | Defined, stable requirements | Markets needing periodic refresh | Fluctuating demand, broader range of goods/services |
| Barrier to entry | Higher — one chance to get on | Lower — repeat entry windows | Lowest — but call-off competition can be fiercer |
Under the Procurement Act 2023
Reviewed
Frameworks survive the reform, but the rules now depend on when the procurement started. The Public Contracts Regulations 2015 (PCR 2015) govern frameworks awarded before 24 February 2025; the Procurement Act 2023 governs those awarded on or after that date. Under the Act, the existing closed framework is retained and a new open framework is introduced — it can run for up to 8 years and must reopen to new suppliers at least once within its first 3 years, removing the closed-period barrier that previously excluded SMEs who missed the initial appointment. Separately, dynamic purchasing systems (DPS) are replaced by dynamic markets, which cover a wider range of goods, services, and works.
Sources: Procurement Act 2023 (legislation.gov.uk) · GOV.UK — Guidance: Frameworks · GOV.UK e-learning — Module 5: Frameworks and dynamic markets
Why it matters for bidders
Framework positions compound. A single framework win can generate dozens of call-off contracts with no further competition — which is why experienced bidders treat framework rounds as their highest-leverage pursuit; missing one means years locked out of that buyer's spend. The mistake most SMEs make is bidding on the headline framework value. The real signal is in the call-off pattern: from published award notices, you can model how many call-offs a given framework has actually generated, their average value, and which incumbents are winning them — so you bid on the commercial reality, not the brochure. That award-data discipline, drawn from teams who have won £3bn+ in UK and EU public contracts, is what separates a framework place that pays from one that sits idle.
How Skim helps
Skim's Opportunity Discovery agent tracks upcoming framework renewals and new framework and open-framework notices across every UK and EU portal, flagging them against your sector, capabilities, and win history — and its Competitor Analysis agent models historical call-off patterns from award data, so you can judge a framework's true value before you commit to the bid.
Frequently asked questions
- Is a framework agreement a contract?
- No. A framework agreement is not itself a contract for goods or services — it sets the terms under which future contracts are placed. The binding contracts are the individual call-off contracts awarded under the framework, each with its own scope, value, and duration.
- How long does a framework agreement last?
- Most public sector framework agreements run for a maximum of four years. Defence and utilities frameworks can run up to eight years, as can the new open frameworks introduced by the Procurement Act 2023, which must reopen to new suppliers within their first three years.
- How is work awarded from a framework?
- Work is awarded in one of two ways. Direct award lets the buyer pick a supplier using pre-set criteria such as ranking or price, with no further competition. A further competition or mini-competition invites appointed suppliers to bid for a specific requirement under the framework's pre-agreed rules.
- Can an SME join a framework after it has started?
- Not a closed framework — its supplier list is locked once suppliers are appointed. But open frameworks, introduced by the Procurement Act 2023, allow new suppliers to join at set intervals during the framework's life, and dynamic markets accept qualifying suppliers at any time.
- What is the difference between a framework and a dynamic market?
- A framework appoints a fixed pool of suppliers (closed) or refreshes at intervals (open). A dynamic market, which replaced the dynamic purchasing system under the Procurement Act 2023, stays open continuously, letting any qualifying supplier join at any time, and covers a broader range of goods, services, and works.
Sources
Related terms
Dynamic purchasing system(DPS)
A dynamic purchasing system (DPS) is an electronic procurement tool under the Public Contracts Regulations 2015 that, unlike a closed framework, stays open to new suppliers throughout its life — any provider meeting the published criteria can join at any point and then bid for individual call-offs.
Call-off contract
A call-off contract is the individual, legally binding contract a public sector buyer places with a supplier under a framework agreement or dynamic market. The framework sets the rules; the call-off is the actual order, with its own scope, value, duration, and deliverables.
Mini-competition
A mini-competition is a focused tender run among the suppliers already appointed to a multi-supplier framework agreement or dynamic market, inviting all eligible members of the relevant lot to bid for a specific call-off contract using the evaluation criteria and rules pre-set by the framework.
Open procedure
The open procedure is a single-stage public procurement route, defined in section 20 of the Procurement Act 2023, where any interested supplier may submit a full tender with no pre-qualification or shortlisting. The contracting authority then awards the contract on the basis of those tenders alone.
Consortium bid
A consortium bid is a single tender submitted jointly by two or more suppliers who combine their capabilities, experience, and resources to compete for a public contract none could win or deliver alone. The group nominates a lead member, and a single legal entity must hold the resulting contract.
Procurement Act 2023
The Procurement Act 2023 is the law governing most UK public procurement, in force since 24 February 2025. It replaces the Public Contracts Regulations 2015 and three other regimes with one set of rules, introducing the competitive flexible procedure, a central digital platform, and a published debarment list.