What is a Framework Agreement?

If your business is looking to win public sector contracts, you are likely to encounter framework agreements.

Frameworks are widely used across public procurement to establish groups of suppliers that public sector organisations can use to purchase particular goods, services or works.

For suppliers, securing a place on the right framework can create access to significant contract opportunities. But there is an important distinction that businesses sometimes overlook:

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

Understanding how the framework operates, how contracts are awarded and whether there is a realistic pipeline of opportunities is therefore essential before committing resources to a framework tender.

What is a Framework Agreement?

A framework agreement establishes the terms under which future contracts can be awarded to one or more suppliers during a specified period.

Instead of a contracting authority carrying out an entirely new procurement every time it needs a particular service, it can use an established framework to purchase from suppliers that have already been appointed.

Frameworks can cover almost anything purchased by the public sector, including:

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

Some frameworks are created for use by a single contracting authority, while others can be accessed by many public sector organisations.

How Does a Supplier Get Onto a Framework?

Suppliers normally compete through a formal procurement process.

The framework opportunity will set out what the contracting authority or framework provider is purchasing, the requirements suppliers must meet and how submissions will be evaluated.

Depending on the procurement, suppliers may need to demonstrate areas including:

• Relevant experience and contract examples.
• Technical and professional capability.
• Financial standing.
• Quality management.
• Health and safety.
• Environmental management.
• Social value.
• Mobilisation capability.
• Service delivery methodology.
• Contract management.
• Business continuity.
• Information security.
• Relevant accreditations and certifications.
• Commercial competitiveness.

The quality and price elements of the submission are evaluated using the published award methodology.

Successful suppliers are then appointed to the framework.

What Are Framework Lots?

Larger frameworks are frequently divided into lots.

Each lot represents a particular service, specialism, contract type, value band or geographical area.

For example, a facilities management framework might contain separate lots for cleaning, security, mechanical and electrical maintenance and total facilities management.

Alternatively, a framework could divide opportunities geographically or according to contract value.

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

This creates an important qualification decision.

Being technically capable of bidding for a lot does not automatically mean that your organisation should bid for it.

You should consider your experience, geographical coverage, resources, evidence, competitive position and ability to deliver future contracts before deciding which lots to pursue.

Does Winning a Framework Guarantee Work?

Usually, no.

This is one of the most important things to understand about framework agreements.

Appointment may give your organisation access to future opportunities, but it does not necessarily guarantee any particular volume or value of work.

The real commercial value depends on factors such as the anticipated pipeline, number of participating buyers, number of appointed suppliers and the method used to award individual contracts.

Before bidding, suppliers should therefore look beyond the headline estimated framework value.

A framework advertised with a very large potential value can appear extremely attractive, but that value may be spread across multiple years, lots, contracting authorities and competing suppliers.

The more important question is:

What is the realistic opportunity for our business?

How Are Contracts Awarded Through a Framework?

Once suppliers have been appointed, individual contracts – often referred to as call-off contracts – can be awarded using the mechanism established by the framework.

The precise process will depend on the framework.

Two commonly encountered approaches are direct awards and further competitions.

What is a Direct Award?

A direct award allows an eligible contracting authority to award a contract to a framework supplier without running a new competitive tender where the framework permits this and the applicable requirements are satisfied.

The framework documentation should explain the circumstances and methodology under which direct awards can be made.

For suppliers, this can make certain frameworks particularly attractive because appointment may create a route to contracts without having to complete a full competitive response every time.

However, suppliers should never assume that a framework offers direct award opportunities.

The award mechanism needs to be examined during the qualification process.

What is a Further Competition?

A further competition is a competitive process conducted between eligible suppliers appointed to the relevant framework or lot.

You may also hear these exercises described as call-off competitions or mini-competitions.

The contracting authority issues its specific requirements and eligible framework suppliers are invited to compete for the individual contract.

The response may require detailed method statements, mobilisation plans, staffing proposals, social value commitments, pricing and other contract-specific information.

Winning the original framework therefore does not remove the need for strong bid management.

In many cases, it simply creates access to the next stage of competition.

Is a Framework the Same as a Contract?

No.

The distinction matters.

A framework establishes the mechanism and terms through which future contracts can be awarded.

The individual contract awarded through that framework is generally the call-off contract.

This is why businesses should be careful when describing framework appointments as contract wins.

Being appointed to a £100 million framework does not mean that your organisation has won £100 million of work.

It means you have secured access to opportunities available through that framework, subject to its particular award arrangements.

How Long Does a Framework Last?

The duration depends on the procurement and the applicable rules.

The procurement documents should clearly identify the framework period and any relevant arrangements affecting its operation.

From a commercial perspective, duration matters because suppliers need to understand how long they will have access to potential opportunities and how the expected pipeline is distributed throughout that period.

A framework with several years remaining may form an important part of a company’s business development strategy.

But duration alone does not determine whether the framework represents a good opportunity.

Pipeline visibility is equally important.

Can New Suppliers Join a Framework Later?

This depends on the structure of the framework.

Some arrangements establish a supplier group that remains fixed for the framework period.

The Procurement Act 2023 also provides for open frameworks, which can allow the framework to be reopened to competition during its lifetime in accordance with the applicable rules.

This creates opportunities for suppliers that were not appointed initially to potentially compete for a position later.

Businesses should therefore understand whether the opportunity is a conventional framework or an open framework and how the specific arrangement will operate.

What Should You Check Before Bidding for a Framework?

Framework opportunities can consume significant bid resources, particularly where multiple lots and detailed quality responses are involved.

A proper bid/no-bid assessment should therefore take place before writing begins.

Consider:

• Whether the framework aligns with your growth strategy.
• Which lots genuinely suit your organisation.
• Whether you meet all mandatory requirements.
• Whether you have strong and relevant contract examples.
• How many suppliers are expected to be appointed.
• How individual contracts will be awarded.
• Whether direct awards are available.
• How further competitions will operate.
• Which contracting authorities can use the framework.
• The geographical coverage required.
• The expected pipeline of opportunities.
• The realistic addressable value for your organisation.
• Whether incumbent suppliers have an advantage.
• The resources required to manage future call-off competitions.
• Whether the commercial model is sustainable.

A framework should be treated as a commercial opportunity, not simply another tender to complete.

What Happens After You Win a Place?

Framework appointment should be the beginning of the strategy, not the end of it.

Businesses sometimes invest considerable effort securing a place and then wait for opportunities to arrive.

A more effective approach is to understand the framework pipeline, identify participating contracting authorities, maintain relationships where appropriate, prepare reusable evidence and establish an internal process for responding quickly to call-off opportunities.

Your bid team should also track performance across further competitions.

If you repeatedly lose call-off opportunities for similar reasons, that information should feed back into your strategy, pricing and future responses.

Framework management should therefore become part of your wider business development and bid management process.

Should You Bid for Every Framework in Your Sector?

No.

A framework being relevant to your sector does not automatically make it a good opportunity.

There may be little realistic pipeline for your business, too many competing suppliers, unsuitable geographical requirements or commercial conditions that make future contracts unattractive.

There may also be frameworks where your evidence simply is not strong enough yet to achieve a competitive score.

One of the most important disciplines in bid management is knowing when not to bid.

The objective is not to submit the greatest number of tenders.

The objective is to focus your resources on opportunities you can realistically win and successfully deliver.

How Meridian Strategies Can Help

Meridian Strategies supports organisations competing for framework appointments and the individual contracts awarded through them.

Our team of six specialist bid writers brings more than 100 years of combined bid management and commercial experience across public and private sector procurement.

We can support the entire process, including opportunity qualification, bid/no-bid assessment, lot selection, framework strategy, compliance management, response planning, bid writing, commercial review, independent review and final submission.

For organisations already appointed to frameworks, we can also support further competitions and call-off opportunities, helping turn framework positions into actual contract wins.

Because securing a place on the framework is only the first step.

The real objective is winning the work that follows.