Framework agreements explained

What a framework agreement is

The UNCITRAL Model Law describes a framework agreement procedure as one run in two stages, with a first stage to select one or more suppliers or contractors to be parties to the agreement ¹. In a closed framework agreement, no supplier that was not a party at the start can join later ¹. An open framework agreement lets new suppliers be added ¹. Where terms cannot be set with enough precision at the start, they are set or refined through a second-stage competition ¹.

Kenya's procurement Act defines a framework agreement as an agreement with selected suppliers or contractors for a definite term, for goods, works or services whose quantities and delivery schedules cannot be fixed at the outset ⁴. A framework contract under the same Act carries a commitment to order a minimum quantity ⁴.

When buyers can use them

Article 32 of the Model Law allows the procedure where the need is expected to arise on an indefinite or repeated basis, or may arise urgently during a given period ¹. The procuring entity must record its reasons and the type of agreement chosen ¹.

Kenya's 2020 Regulations allow framework agreements where quantities and delivery schedules cannot be fixed in advance and the need recurs over a set period, under regulation 101(1) ³. Tanzania's 2023 Act uses the same two tests as the Model Law, a recurring need or an urgent need, in section 52(1) ^1,5. Uganda's Act describes a framework contract as a schedule of rates or an indefinite delivery contract, used for needs on call or to cut costs or lead times for repeated needs ⁶.

How long they last

Term limits differ between rule sets ^1,23.

Placing orders

Under EU recital 61, where an agreement with several operators sets out all terms, the buyer may award a specific order to one operator chosen by objective criteria or hold a mini-competition among the parties ². The procurement documents must state the criteria that decide which route applies ². The recital says framework agreements should not be used improperly or in a way that prevents, restricts or distorts competition ².

Kenya's regulations 101 to 106 cover tender requirements, call-offs, mini-competitions, price indexing and ordering ³. Under the Model Law, a framework agreement procedure without second-stage competition is exempt from the standstill notice in article 22(2), under article 22(3)(a) ¹. The entity must publish notice of the award under article 23(1) ¹.

Rules in other countries and lenders

• Tanzania: section 52(2) gives the Government Procurement Services Agency, with the Authority, the role of setting procedures for common-use items bought through framework agreements ⁵.
• Uganda: section 60(2)(b) tells entities to make use of framework contracts wherever appropriate ⁶.
• Malawi: section 54 of the 2025 Act permits framework agreements as set out in regulations ⁷.
• Zambia: section 2 of the 2020 Act defines a framework agreement as an agreement with a selected supplier or contractor for a definite term, and section 57(1)(b) encourages rate or running contracts for recurring needs ⁸.
• South Africa: the 2024 Act defines a transversal term contract as one arranged by the relevant treasury or another procuring institution mandated by legislation ⁹.
• World Bank: the September 2025 Procurement Regulations list framework agreements among contract types and arrangements in paragraph 5.27, with details in Annex VIII ¹⁰.