Businesses, especially public contracting authorities, may enter into framework agreements with one or more suppliers, which prescribe the terms and conditions which would apply to any subsequent contract and make provision for selection and appointment of a contractor by reference directly to the agreed terms and conditions or by holding a competition inviting only the partners to the framework agreement to submit specific commercial proposals. In the public sector, a number of Central Purchasing Bodies exist whose purposes include the creation and management of framework agreements which are compliant with EU Procurement Directives and available for use by designated public bodies. In the United Kingdom, examples include
Crown Commercial Service,
local authority consortia such as the
Eastern Shires Purchasing Organisation (ESPO) and
Yorkshire Purchasing Organisation (YPO), and consortia operating in the
higher and
further education sectors: APUC (in Scotland), Crescent Purchasing Consortium (CPC), London Universities Purchasing Consortium (LUPC), North Eastern Universities Purchasing Consortium (NEUPC), North Western Universities Purchasing Consortium (NWUPC), and Southern Universities Purchasing Consortium (SUPC). For a more complete list, see
List of central purchasing bodies in the United Kingdom The
Chartered Institute of Procurement & Supply makes a distinction between a "framework contract" and a "framework agreement". Under a framework contract, some form of
consideration is paid "up front" to secure the commitment of the supplier to the agreed terms and conditions. The value of the consideration may be for a nominal amount only. A framework agreement, or an "umbrella agreement", lacks consideration and therefore lacks obligation: a "pricing formula" may apply for a period of time (e.g. a price list) or prices and further details may be determined via a "mini-competition". ==References==