Framework Agreements & DPS Explained

What is a framework agreement?

A framework agreement is a pre-qualification arrangement between one or more contracting authorities and a panel of approved suppliers. It is not itself a contract for the delivery of goods or services — rather, it is an agreement that sets out the terms (pricing structures, quality standards, commercial conditions) under which future contracts, called call-offs, may be awarded.

Think of a framework as a vetted supplier list. A buyer runs a competitive process up front to establish the panel. Once the framework is live, buyers across the eligible user base can procure from framework suppliers without re-running the full competitive process every time. This saves significant procurement time and cost — particularly for commonly purchased goods and services.

Frameworks are used extensively across central government, the NHS, local authorities, higher education, housing associations, and blue-light services. Major frameworks are managed by Crown Commercial Service (CCS), NHS Supply Chain, YPO, ESPO, and a large number of specialist buying organisations and local authority consortia.

The legal basis for framework agreements in England, Wales, and Northern Ireland was previously the Public Contracts Regulations 2015. The Procurement Act 2023, which entered into force in February 2025, carries forward the framework concept with some refinements to the rules and notice requirements.

How framework agreements work

A framework agreement has two distinct phases: establishment and utilisation. Understanding both is essential for any supplier seeking to win public sector work through this route.

Phase 1: Framework establishment

The contracting authority (or a central purchasing body acting on its behalf) advertises the framework in the same way as any other public procurement — via a Contract Notice on Find a Tender Service (FTS) for above-threshold procurements. Suppliers respond to a set of selection and award criteria. Those that meet the threshold are admitted to the framework, usually allocated to specific lots (defined categories of requirement).

Depending on the framework structure, the establishment process may rank suppliers within lots (with scores carrying through to call-offs), or simply admit all qualifying suppliers without ranking. The former is more common in frameworks with a large supplier panel; the latter in frameworks with smaller, more tightly defined lots.

Once established, the framework is closed to new entrants (unlike a DPS — see below). The standard maximum duration is four years.

Phase 2: Call-off contracts

When a framework member (a contracting authority with access to use the framework) needs to buy something within scope, they award a call-off contract. There are two mechanisms for doing this: direct award and mini-competition.

A direct award is made without further competition — either to the highest-ranked supplier in the relevant lot, or according to objective criteria set out in the framework. A mini-competition re-opens competition among all capable framework suppliers in the relevant lot. The choice between the two depends on the framework's rules, the value of the requirement, and whether the framework terms alone are sufficient to define the specific need.

How to get on a framework

Getting onto a framework requires the same rigour as any competitive tender — and in some respects more, because you are bidding not just for one contract but for access to potentially dozens of future call-offs. The investment in a quality framework bid is justified by the pipeline of work it can unlock.

Monitor upcoming frameworks. Frameworks are typically advertised on FTS and Contracts Finder. Prior Information Notices (PINs) will often signal that a major framework renewal is coming. If you work in a sector served by a specific buying organisation — such as Pagabo for construction, G-Cloud for technology, or CCS RM frameworks for professional services — register with those organisations and subscribe to their mailing lists.

Understand the selection stage. Most frameworks use a Selection Questionnaire (SQ) to assess organisational capability, financial standing, and relevant experience. Common requirements include: minimum annual turnover (typically 1.5–2x the estimated annual lot value), insurance levels, absence of exclusion grounds, references or case studies demonstrating relevant experience, and quality/environmental management certifications.

Read the award criteria carefully. Beyond selection, frameworks usually have an award stage that scores the quality of your approach, pricing structures, or both. This is where differentiation matters. Generic, template-style responses rarely score above the midpoint. Tailor responses to the specific framework scope and demonstrate measurable outcomes from comparable work.

Price realistically.Many frameworks require you to commit to pricing or pricing mechanisms at the establishment stage. These rates will govern call-offs for the full framework term. Price too high and you'll lose direct awards and mini-competitions; price too low and you create margin problems that may endure for years. Build your rates with the full contract lifecycle in mind.

How call-off contracts work

Being on a framework is not the same as winning work. A framework place grants you the right to compete for call-off contracts — it does not guarantee any minimum volume of business. Understanding how call-offs are run is as important as winning your framework place.

Direct award.Where the framework permits, a buyer may place a call-off contract directly with the highest-ranked framework supplier capable of meeting the requirement. This is fast — sometimes a matter of days — and requires no further supplier effort beyond having provided a strong framework bid. If you are ranked first in a lot, monitoring the framework's usage across your buyer base and maintaining good relationships with framework management teams can help ensure you are considered.

Mini-competition.For more complex or higher-value requirements, or where the framework's terms do not uniquely identify the best value supplier, buyers run a mini-competition. All framework suppliers capable of delivering within the relevant lot are invited to bid. The scoring criteria may be identical to the framework criteria or may include requirement-specific elements. Typical timescales are two to four weeks for submission.

Call-off contract terms. The terms of the call-off will incorporate the overarching framework terms plus the specific requirements defined in the mini-competition. Importantly, the call-off contract binds only the specific buyer and the winning supplier — other framework members are not party to it. Call-off durations are typically set within limits defined by the framework.

Dynamic Purchasing Systems (DPS)

A Dynamic Purchasing System (DPS) is an entirely electronic purchasing process for commonly used purchases. Unlike a closed framework, a DPS remains open to new applicants throughout its entire life. Any supplier that meets the qualification criteria can join at any point, which makes DPS particularly well suited to markets where the supply base changes regularly or where buyers want to maintain competitive pressure over time.

Under the Procurement Act 2023, the DPS concept has been updated and renamed the Dynamic Market. The practical effect for suppliers is very similar: apply to join by meeting the published selection criteria, and then compete for individual contracts as they are issued through the system.

DPS arrangements are common in social care, healthcare services, technology products, and some professional services categories. NHS Supply Chain runs several DPS-style catalogues. Many local authorities use DPS for domiciliary care commissioning.

The key advantage of DPS for suppliers is that you do not miss the boat if you were not ready at establishment. If a major framework launched before you were ready to bid, you are excluded for its full four-year life. On a DPS, you can join when you are ready and start competing immediately.

Framework vs DPS vs Open Tender

The table below summarises the key characteristics of each procurement route from a supplier perspective.

Tips for winning framework places

A framework bid is a strategic investment. The following practices consistently separate high-scoring submissions from the midfield.

Target the right lots.Large frameworks often have multiple lots. Resist the temptation to bid every lot — your resources are finite, and a weaker bid across many lots will score worse than a strong bid on the two or three lots where you genuinely excel. Quality buyers can tell when a response has been thinly adapted from another lot's answer.

Use real case studies. The selection and award stages almost always require evidence of relevant experience. Generic capability statements score poorly. Specific examples — named project, named buyer, quantified outcomes, lessons learned — score well. Build and maintain a library of case studies before framework season arrives.

Address the scoring criteria explicitly. Every scoring criterion and sub-criterion should be addressed directly in your response, in the order the buyer set it out. Evaluators are working through a scoring matrix. Make it easy for them to find the evidence they need against each criterion rather than burying it in flowing narrative.

Demonstrate your understanding of the user base. Central frameworks serve dozens or hundreds of different buyers. Show that you understand the variation in buyer needs, procurement maturity, and delivery contexts across the user base. This is especially important for lots spanning multiple sectors (e.g., NHS, local authority, and central government all using the same lot).

Plan for the call-off stage from the start. The framework bid locks in certain commitments — pricing mechanisms, service levels, terms. Before you commit, war-game what your call-off bids will look like and whether your framework commitments are commercially sustainable across a range of contract sizes and buyer types.

Frequently asked questions