Purchasing under a framework agreement

When buying on the basis of a framework contract, buyers cannot choose how to purchase. The purchases are made either through direct purchases or by a micro-tender.

When a framework agreement allows both a micro-tender and a direct purchase, the terms of the agreement must specify the criteria that govern when a direct purchase should be made and when a micro-tender must be made. Such criteria may refer to, for example, the quantity, value or characteristics of the goods, works or services when purchasing.

This ensures effective competition between traders during the contract period, which will be a positive factor for the buyers.

Direct purchases

If a framework agreement contains all the terms and conditions governing how the seller becomes a party to the framework agreement, it is permissible to conclude individual direct agreements with sellers within the framework agreement without opening up further competition in the form of a call for tenders.

These purchases are referred to as direct purchases or contract awards without a micro-tender and allow for purchases based on the most economical option that can be chosen from the tenders used to develop the framework agreement itself.

Direct purchases with one trader

• Purchases may only be made on the basis of a direct purchase agreement.

Direct purchases involving more than one seller

• When direct purchases are authorised in a framework agreement that involves more than one undertaking, it is necessary to decide how their arrangements should be conducted during the period of the contract.

• It is possible to decide that only the most efficient company can be negotiated in a framework contract award, but that a micro-tender should be held if that company cannot supply the necessary supplies. However, it is much more common that it is possible to negotiate with more than one company through direct purchases, but then it is necessary to decide on an objective method that controls who is negotiated with.

How do direct purchases take place?

Micro Auctions

A micro-tender means a procurement procedure whereby the buyer seeks, with reasonable notice, written offers among certain framework contract holders on terms not specified in the framework contract in question and concludes the procedure with the best bidder on the basis of the selection criteria set out in the terms of the framework contract.

When the terms of a framework agreement with a number of parties are to some extent undecided, the following rules shall apply:

• When each individual contract is awarded, the buyer shall consult the framework agreement holders who could fulfil the contract in writing.

• The buyer shall set a period of time for the bid to be sufficiently long for the holders of the framework contract to submit a bid for the contract in question. The length of time shall be considered in relation to the complexity of the subject matter of the contract and the time of dispatch.

• The offer of the framework contractor shall be made in writing and the content of the offer shall be kept confidential until the deadline for the offer has passed.

• The buyer shall choose between the offers of the holder of the framework contract on the basis of the selection criteria that have been stated in the terms of the framework contract.

Implementing a micro-auction

The buyer prepares a brief summary of the goods or services he wishes to solicit. It must describe what is intended to be purchased, its scope, what services it includes and what requirements are made for the quality and professional knowledge of the tenderers.

• Preparation and preparation of a micro-tender 3 items that must be included in a micro-tender:

  1. When and for what time should an offer be submitted? – Date, time and e-mail/location

  2. When should the delivery take place?

  3. How will the buyer evaluate an offer?

• The tender was evaluated. The most efficient tender was selected according to the selection criteria of the micro-tender.

• The offer accepted. A deal has been reached.

Note that selection criteria are defined within each framework agreement.

Since the main terms have been established in the framework agreement itself, it is considered that individual contracts within it are in fact adjustments needed for individual procurement.