If you’ve ever explored public sector tender opportunities, you’ve probably come across the term ‘framework agreement’. For many suppliers, especially SMEs, the concept can feel confusing or even intimidating. Is it a contract? How does it work? And, most importantly; how do you win business through one?
At Sphere6, we’ve helped businesses secure over £35 million in public sector contracts. Framework agreements are one of the most powerful routes to long-term growth, when you understand how to navigate them strategically. This guide explains what framework agreements are, how they work, and how you can use them to your advantage.
What Is a Framework Agreement?
A framework agreement is an umbrella arrangement between a buyer (usually a public sector body) and one or more suppliers, setting out the terms under which future contracts (known as ‘call-offs’) can be awarded during a set period.
Think of it as a pre-approved supplier list. Instead of running a full tender every time, the buyer establishes a framework to streamline procurement. Once the framework is in place, they can easily award smaller contracts to suppliers already on that list.
Frameworks are common across the UK and wider public sector; from NHS procurement and local councils to central government and housing associations.
Is a Framework Agreement a Contract?
Technically, a framework agreement is not a contract in itself. It’s a mechanism or structure that governs how contracts (call-offs) will be awarded in the future. However, once a supplier wins a call-off under the framework, that becomes a binding contract.
In short:
The “framework” sets the rules.
The “call-offs” are the actual contracts.
This distinction matters, because suppliers often misunderstand the nature of frameworks. Winning a place on one doesn’t guarantee revenue; it gives you the right to compete (or sometimes be directly awarded) during its lifetime.
Why Framework Agreements Exist
Framework agreements are designed to make public procurement more efficient, transparent, and cost-effective. They help buyers:
Reduce duplication in running multiple tenders.
Access trusted, pre-vetted suppliers quickly.
Ensure compliance with procurement regulations.
Build long-term relationships with high-performing suppliers.
For suppliers, frameworks offer strategic advantages too; if you approach them with the right mindset.
Benefits of Framework Agreements for Suppliers
Consistent Opportunity Pipeline
Being on a framework positions your business to compete for regular work over several years. You’re in the right place when buyers need services fast.
Reduced Barriers to Entry
Once pre-qualified, you avoid repeating the same compliance checks, policies, and due diligence for each opportunity.
Market Credibility
Securing a place on a major framework; like Crown Commercial Service, NHS Supply Chain, or local authority networks, signals trust and capability.
Relationship Building
Framework participation allows you to build long-term relationships with procurement teams, which can lead to stronger performance scores and repeat awards.
Strategic Insight
You’ll gain access to tender forecasts, spending data, and mini-competition opportunities that aren’t always public, helping shape your growth strategy.
The Challenges (and Misconceptions)
Frameworks can look appealing, but they’re not an instant win. Here’s what to watch for:
No guaranteed revenue: Some suppliers join frameworks expecting immediate work, only to find little activity. Always review past call-off volumes and potential buyer engagement before investing time.
High competition at call-off stage: Even if you’re on the framework, you’ll still compete against others on it for mini-tenders.
Compliance fatigue: Frameworks can last up to four years, with ongoing reporting and performance obligations.
Resource demands: Preparing a strong bid for entry and then responding quickly to call-offs requires time and structure.
That’s where strategic bid planning; like the approach we build through our Bid Strategy and Bid Essentials services, makes the difference between joining and winning through a framework.
How Framework Agreements Work
1. Framework Creation
A buyer identifies a recurring need; say, IT support, construction, or medical equipment, and decides to set up a framework. They issue a tender (often via Find a Tender Service or Contracts Finder) describing the scope, terms, and supplier selection criteria.
2. Supplier Selection
Suppliers compete for a place on the framework. This stage resembles a full tender: you’ll provide evidence of capability, experience, quality systems, pricing models, and sometimes a quality submission explaining your approach.
3. Framework Award
Once awarded, successful suppliers are added to the framework for a fixed term (often 2–4 years). You become part of a pre-approved supplier list eligible for future work.
4. Call-Off or Mini-Competition
When a buyer needs goods or services, they either:
Direct award to a supplier (if criteria are met, such as best value or specialist fit), or
Run a mini-competition among all framework suppliers to determine the best offer for that specific requirement.
5. Contract Management & Performance
Performance, pricing, and compliance are monitored throughout. Good performance on one call-off can improve your chances in future ones, both within that framework and beyond.
Key Terms to Understand
Call-Off Contract: A specific contract awarded under the framework for a defined piece of work.
Mini-Competition: A smaller, faster tender among framework suppliers.
Lot: Frameworks are often divided into “lots” based on region, product type, or value.
Direct Award: When the buyer can legally award without a new competition, typically based on clear, pre-set criteria.
OJEU/Find a Tender: Platforms where framework opportunities are published in the UK.
Real-World Example
Imagine a council creates a "Facilities Management Framework" covering cleaning, maintenance, and catering services. The framework runs for four years and is split into regional lots.
Entry Stage: You submit a bid demonstrating capability, pricing, and quality.
Award Stage: You’re approved for the “South West Cleaning Services” lot.
Call-Off Stage: When a school needs cleaning, the council invites all South West lot suppliers to a mini-competition.
Contract Stage: You win the call-off and deliver the service under the agreed framework terms.
Through this structure, buyers streamline procurement, and you gain access to a consistent stream of opportunities.
How to Succeed on a Framework Agreement
Winning a place is just the beginning. To turn it into measurable growth, focus on these success factors:
1. Be Selective
Not every framework suits your business. Use a strategic filtering process, like the **Bid RADAR** service we offer, to evaluate ROI potential before you commit resources.
2. Prepare Thoroughly
Framework bids are often large, complex, and heavily scored on compliance. Build a structured response library and project plan to avoid last-minute rushes.
3. Price for Longevity
Your pricing model should be sustainable over the framework’s lifespan, not just the first call-off. Anticipate inflation, volume variation, and efficiency gains.
4. Engage Actively
Once you’re on the framework, stay visible. Attend buyer briefings, monitor call-off notices, and maintain relationships with key stakeholders.
5. Measure and Improve
Treat each mini-competition as a learning opportunity. Capture feedback, track win rates, and refine your responses. Frameworks reward suppliers who evolve.
Common Mistakes to Avoid
Assuming inclusion equals income: Getting onto a framework doesn’t guarantee work, active engagement is key.
Overcommitting resources: Winning too many lots or frameworks can stretch your delivery capacity and damage performance.
Ignoring terms and renewal cycles: Framework renewals can open before your existing one ends, plan early to retain your position.
Using copy-paste content: Framework buyers expect tailored, relevant answers tied to evaluation criteria.
At Sphere6, we help clients structure frameworks bids correctly from the outset; balancing ambition with deliverability to ensure long-term success.
Why Framework Agreements Matter More Than Ever
Public procurement is evolving. Frameworks are expanding across digital services, sustainability initiatives, and social value delivery. As government buyers seek efficiency and consistency, frameworks remain central to how billions of pounds of spend are managed annually.
For ambitious SMEs, that represents huge potential. But success demands clarity, strategy, and expert support.
That’s why we built Sphere6; to help suppliers see the full picture, target the right frameworks, and compete with confidence.
Ready to Win More Through Frameworks?
If frameworks have felt confusing or unproductive before, the issue isn’t the system; it’s the strategy behind how you engage with it. With the right guidance, frameworks can deliver recurring revenue, visibility, and growth.
Our team has sat on both sides of procurement, shaping and winning multi-million-pound frameworks. Whether you’re looking to join your first or optimise your approach to existing ones, we’ll help you build a structured, scalable system that wins.
Book your strategy call with Sphere6 today, and start turning frameworks into firm wins.
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