Framework agreements, EU procurement law and the practice

In 2004, the Public Sector Directive1 introduced provisions on framework agreements, which are understood as ‘umbrella’ agreements for the provision of goods, works or services, for which the contracting authority has a repeated need.2 Framework agreements may be conducted by one or more contracting authorities, with one or more economic operator. They establish terms and conditions under which subsequent contracts (call-offs) can be awarded within the duration of the framework agreement. Due to their efficiency, since their introduction they have gained popularity and importance in the public tender market.3 It has been argued that framework agreements are more efficient than traditional procurement exercises, as they save time for both the purchaser and supplier, as well as resources and costs associated with negotiating terms and conditions every time an individual call-off is made.4 The efficiency is particularly important, given that procurement represents 18 % of the GDP in Europe.5