In the public sector, there are many types of contracts. Most contracts are individual suppliers and, therefore, the procurement process excludes everyone but one. However, there are many framework agreements for buyers who work with a number of suppliers. When entering into framework agreements, buyers should be aware of the effects of limited competition from repeated purchases of the same products from the same suppliers for longer periods of time. It is therefore important that the advantage of establishing long-term partnerships is against the advantage of opening up competition to potential new suppliers, especially SMEs, in order to keep up with the ever-changing market. Framework agreements should be reached when the buyer must establish, over a long period of time, a strategic relationship with the supply chain, in which suppliers can adapt to the buyer`s requirements. Specifications and evaluation criteria are defined in advance and cannot be changed during the currency of the agreement, which lasts at least 12 months to a maximum of 3 years. Subsequently, conditions and prices can be renegotiated to ensure that they are in line with changing market conditions. Recommendation 18 of the EEC-UN supports the implementation of such agreements. In addition, it is recommended that an intermediary for the provision of commercial and transport services in an international supply chain (measures 1.1 and 1.2) be included in the framework contract between supplier and purchaser. Competition can be considered at regular times (for example. B years) for a framework agreement with a single supplier or be open permanently when multiple suppliers are involved.
In the latter case, price offers are requested by all parties to the contract if necessary and if an order is to be placed. There are many types of framework agreements that can be tailored to the specific needs of buyers. It depends on whether your organization or “organizational class” is clearly identified as an adjudicator power that can use it through the call to competition. If you use a framework, you cannot use it, which implies an illegal “direct allocation” of a public contract and runs the risk of a claim for inefficiency on the grounds that the contract should have been the subject of a separate tender. The important thing if you are fighting for a place in a frame is that the level of competition will be much higher. This is simply due to the size of the contracts and the increase in the number of places. Most importantly, the environment is a long-term partnership between the supplier, the customer and other stakeholders, which creates the work environment needed to support continuous improvements.