European Commission Explanatory Note Framework Agreements

The European Commission Explanatory Note Framework Agreements: What You Need to Know

The European Union’s procurement regulations have undergone significant changes in recent years, particularly with the introduction of the new procurement directives in 2014. Among the measures introduced were new rules around framework agreements, which are becoming increasingly popular for public authorities when procuring goods, services, and works.

The European Commission, which is responsible for overseeing EU procurement law, has published an explanatory note on framework agreements. This document provides guidance and clarity on how public authorities can use framework agreements, and how suppliers can participate in such agreements.

What is a framework agreement?

A framework agreement is a type of procurement procedure that allows public authorities to establish a long-term agreement with one or more suppliers. The agreement sets out the terms and conditions for the supply of goods, services, or works over a defined period, typically several years.

Framework agreements can be either single-supplier or multi-supplier. In a single-supplier framework agreement, the public authority enters into an agreement with one supplier, who is responsible for providing all the goods, services, or works covered by the agreement. In a multi-supplier framework agreement, the public authority enters into an agreement with several suppliers, who will compete against each other for individual contracts within the framework.

Why use a framework agreement?

Framework agreements offer a number of benefits for public authorities and suppliers alike. For public authorities, the use of a framework agreement can streamline the procurement process, reduce administrative costs, and ensure greater consistency in the quality of goods, services, or works procured.

For suppliers, framework agreements provide a predictable and stable source of revenue over an extended period, which can help them to plan their business activities and invest in their operations. Framework agreements can also provide a competitive advantage for suppliers, as they can differentiate themselves from competitors by offering unique or specialized products or services.

How to participate in a framework agreement

Suppliers who wish to participate in a framework agreement must first respond to a call for competition, which is published by the public authority in the Official Journal of the European Union. The call for competition will set out the requirements for suppliers to be eligible to participate and the criteria that will be used to evaluate bids.

Once the framework agreement has been established, suppliers who have been successful in the call for competition will be invited to compete for individual contracts within the framework. The public authority will issue calls for tenders for specific goods, services, or works, and suppliers will be required to submit bids in response.

In conclusion, the European Commission’s explanatory note on framework agreements provides valuable guidance for public authorities and suppliers on how to use and participate in these agreements. By following the rules and procedures set out in the note, public authorities can streamline their procurement processes and ensure that they obtain the best value for money, while suppliers can benefit from a stable and predictable source of revenue over an extended period.