What is a Framework Agreement in Public Sector Procurement?

Framework agreements are one of the most common routes used by UK public sector organisations to purchase goods, services and works.

For businesses looking to win public sector contracts, understanding how frameworks operate is important because they can provide access to opportunities across central government, local authorities, NHS organisations, housing providers, education, emergency services and other public bodies.

However, there is an important distinction:

Winning a place on a public sector framework does not necessarily mean you have won a contract.

A framework establishes a route through which participating public sector organisations can award contracts to appointed suppliers.

The real opportunity comes from understanding how those contracts will be awarded and successfully converting your framework position into work.

What is a Public Sector Framework Agreement?

A framework agreement is a procurement arrangement established by a contracting authority through which future public contracts can be awarded.

Rather than carrying out a completely new procurement exercise every time a requirement arises, public sector organisations that are entitled to use the framework can award contracts in accordance with the framework’s terms and award procedures.

A framework might cover areas such as:

• Security services.
• Facilities management.
• Cleaning.
• Construction.
• Repairs and maintenance.
• Professional services.
• IT and technology.
• Consultancy.
• Recruitment.
• Transport and logistics.
• Healthcare.
• Equipment and supplies.

Some frameworks are established by an individual contracting authority for its own requirements.

Others are established as wider procurement vehicles that can be accessed by multiple public sector organisations.

For suppliers, this can provide access to a pipeline of public sector opportunities without having to compete in the wider market for every individual requirement.

Who Uses Public Sector Frameworks?

Framework agreements are used throughout the UK public sector.

Depending on the framework and the organisations permitted to access it, users can include:

• Central government departments.
• Local authorities.
• NHS organisations.
• Housing associations and registered providers.
• Universities and colleges.
• Schools and academies.
• Police and emergency services.
• Transport authorities.
• Other contracting authorities and public bodies.

There are also major public sector procurement organisations that establish frameworks on behalf of wider groups of contracting authorities.

The important point for suppliers is that not every public body can automatically use every framework.

The procurement documentation should establish which contracting authorities, or categories of contracting authorities, are entitled to award contracts through it.

That should form part of your assessment of the opportunity.

Why Does the Public Sector Use Framework Agreements?

Public sector procurement can be complex and resource-intensive.

A framework allows contracting authorities to establish suitable suppliers and the rules for future purchasing through an initial competitive procurement.

When a subsequent requirement arises, the authority can then award a contract through the framework in accordance with those rules rather than necessarily conducting an entirely new open-market procurement.

For public bodies, this can provide a more efficient route to market.

For suppliers, it can create access to a defined group of potential public sector customers and future contract opportunities.

How Do Suppliers Get Onto a Public Sector Framework?

The framework itself is normally established through a competitive public procurement exercise.

Suppliers interested in being appointed need to respond to the published opportunity and satisfy the requirements set by the contracting authority.

The procurement documents may assess areas including:

• Technical and professional capability.
• Relevant contract experience.
• Financial standing.
• Service delivery methodology.
• Mobilisation.
• Contract management.
• Staffing and resources.
• Quality assurance.
• Health and safety.
• Business continuity.
• Social value.
• Environmental management.
• Information security.
• Relevant accreditations.
• Commercial proposals and pricing.

The exact requirements will depend on what is being procured.

Responses are evaluated against the published criteria and successful suppliers are appointed to the framework.

What Are Lots on a Public Sector Framework?

Large public sector frameworks are often divided into lots.

Lots allow a contracting authority to separate requirements according to factors such as service type, geographical area, specialism or contract value.

For example, a facilities management framework could contain separate lots for:

• Security.
• Cleaning.
• Hard FM.
• Grounds maintenance.
• Total facilities management.

A national framework could instead divide its requirements geographically, allowing suppliers to compete for specific regions.

Suppliers may be permitted to bid for one or several lots.

Choosing the right lots is an important bid decision.

A business should not automatically pursue every lot it is technically capable of delivering.

The strength of your experience, evidence, resources, geographical coverage and competitive position should all influence the decision.

Does Winning a Public Sector Framework Guarantee Contracts?

No.

This is one of the most important aspects of framework procurement for suppliers to understand.

Being appointed to a framework gives your organisation a position on that procurement arrangement.

It does not necessarily guarantee that a public sector organisation will award you any work.

This is particularly important when looking at the advertised estimated value of a framework.

A framework may have a potential value of £100 million, £500 million or considerably more.

That does not mean each appointed supplier has won a share of that value.

The total may be spread across multiple years, lots, regions, public sector organisations and competing suppliers.

When deciding whether to bid, you therefore need to look beyond the headline value.

Ask:

What proportion of this opportunity is realistically accessible to our organisation?

How Are Public Sector Contracts Awarded Through a Framework?

Once suppliers have been appointed, participating contracting authorities can award individual contracts through the framework in accordance with its rules and applicable procurement legislation.

These individual contracts are commonly known as call-off contracts.

The framework documentation should explain how these awards can be made.

Depending on the framework, this can include an award without a new competition or a competitive process between eligible framework suppliers.

Understanding the call-off mechanism is essential when deciding whether a framework is commercially attractive.

What is a Direct Award?

Some public sector frameworks provide a mechanism through which a contracting authority can award a call-off contract to a framework supplier without conducting a new competition, where the relevant requirements for doing so are satisfied.

The framework should establish how that process operates.

For suppliers, the availability of direct award can make a framework particularly attractive.

However, appointment to a framework does not mean direct awards will automatically come to your business.

You need to understand how suppliers are selected, which contracting authorities are likely to use the framework and how your organisation will position itself once appointed.

What is a Competitive Call-Off?

Where the framework requires or permits competition between suppliers, eligible suppliers may be asked to compete for a contracting authority’s specific requirement.

This is often referred to in the market as a further competition, mini-competition or call-off competition, although suppliers should always follow the terminology and procedure specified in the particular procurement.

The contracting authority will issue its specific requirements and suppliers will submit a response.

That response could include:

• Method statements.
• Mobilisation plans.
• Staffing models.
• Contract management arrangements.
• Social value commitments.
• Sustainability proposals.
• Quality assurance.
• Risk management.
• Implementation plans.
• Pricing.

This is why framework appointment should never be viewed as the end of the bidding process.

For many suppliers, it is the beginning of a series of future competitions.

Is a Framework the Same as Winning a Public Sector Contract?

No.

A framework position and a contract award are different things.

The framework establishes the procurement route through which future contracts can be awarded.

The individual call-off is the contract awarded for a particular requirement.

This distinction is particularly important when businesses describe their public sector experience.

If your company is appointed to a £200 million framework, it would be misleading to describe that as £200 million of contracts won.

You have secured access to a framework with that estimated overall value.

The actual value won by your organisation comes from the contracts subsequently awarded to you.

What is an Open Framework?

The Procurement Act 2023 introduced the concept of an open framework.

An open framework provides a mechanism through which the framework can be reopened to competition during its lifetime, allowing additional opportunities for suppliers to compete for appointment.

This is important for both existing and prospective suppliers.

A business that was not appointed initially may have another opportunity to compete when the framework is reopened.

Existing suppliers should also recognise that the competitive landscape may change as additional suppliers potentially enter the framework.

Understanding whether a procurement is establishing a framework or an open framework should therefore form part of your initial opportunity assessment.

What Should You Check Before Bidding for a Public Sector Framework?

A large framework tender can require substantial bid resources.

Before committing to the submission, carry out a proper bid/no-bid assessment.

Consider:

• Which public sector organisations can use the framework.
• Which lots are relevant to your organisation.
• Whether you satisfy all mandatory requirements.
• Whether your previous experience is sufficiently relevant.
• Whether you have strong evidence to support your responses.
• How many suppliers may be appointed.
• How call-off contracts will be awarded.
• Whether direct award opportunities exist.
• How competitive call-offs will operate.
• The expected volume and pipeline of opportunities.
• The geographical requirements.
• The likely competition.
• The framework duration.
• The commercial terms.
• Your ability to resource future call-off competitions.
• The realistic contract value available to your organisation.
• Your probability of winning both framework appointment and subsequent work.

The existence of a framework in your sector does not automatically make it the right opportunity.

What Happens After You Are Appointed?

Winning a position on a public sector framework should be treated as the start of the commercial process.

Once appointed, suppliers need to understand how the framework will generate opportunities.

That means monitoring the pipeline, understanding participating contracting authorities, preparing for call-off competitions and keeping your bid evidence current.

Your organisation should have an established process for responding quickly when opportunities are released.

That may include maintaining:

• Current case studies.
• Performance data.
• Mobilisation evidence.
• Social value evidence.
• Policies and procedures.
• Accreditations and certifications.
• Organisational information.
• CVs and competency evidence.
• Quality and compliance documentation.

Framework performance should also be monitored.

If you are being invited to multiple call-off competitions but are not winning them, find out why.

Evaluation feedback can identify weaknesses in quality, evidence, pricing, social value, differentiation or another aspect of your submissions.

That intelligence should be used to improve the next response.

Should You Bid for Every Public Sector Framework?

No.

This is where effective bid management becomes particularly important.

The objective should never be to bid for every public sector opportunity that appears relevant to your services.

Some frameworks will be strategically valuable.

Others may have limited realistic pipeline, unsuitable commercial terms, excessive competition or requirements that do not align strongly enough with your organisation’s experience.

Your resources have a value.

Every hour spent pursuing a framework with a low probability of success is an hour that cannot be spent on a stronger opportunity.

Good bid management therefore starts with qualification.

The aim is not to submit more public sector tenders. The aim is to win the right ones.

How Meridian Strategies Can Help

Meridian Strategies specialises in supporting organisations competing for public sector contracts.

Our team of six specialist bid writers brings more than 100 years of combined bid management and commercial experience, supporting businesses through complex public procurement exercises.

For framework opportunities, we can support:

• Opportunity qualification and bid/no-bid decisions.
• Procurement document review.
• Lot selection.
• Compliance management.
• Bid strategy and win themes.
• Response planning and storyboarding.
• Bid writing.
• Evidence development.
• Social value responses.
• Mobilisation and implementation responses.
• Commercial review.
• Independent bid review.
• Submission management.
• Call-off and further competition responses.
• Post-submission evaluation and lessons learned.

Whether you are trying to secure your first position on a public sector framework or convert an existing framework appointment into actual contracts, the objective remains the same:

Winning work that matters.