1. www.bangor.ac.uk/law Dr Ama Eyo Lecturer and Public Procurement Specialist Institute for Competition and Procurement Studies, Bangor University, North Wales, United Kingdom a.eyo@bangor.ac.uk Framework Agreement: Perspectives from different jurisdictions

2. www.bangor.ac.uk/law Agenda  Preliminary issues  Framework Agreement (FA) – ABCs……  Importance and Benefits of FA  Setting up  Models  FA in different jurisdictions - Perspectives  Some commentaries on FA

3. www.bangor.ac.uk/law Framework Agreement (FA)?  An agreement to secure the future supply of a product, service or works over a period of time which involves:  Solicitation of tenders or offers against set T & C;  Submission of tenders indicating the terms on which different supplier(s) are willing to supply;  Subsequent placing of periodic orders to conclude procurement contracts with supplier(s) under the terms of FA as particular requirements arise!

4. www.bangor.ac.uk/law Framework Agreement (FA)? Agreement specifying:  Mechanism for future procurement contracts  Terms of the procurement Procurement contract

5. www.bangor.ac.uk/law Importance  Tool for procuring common use items….  However it is different from supplier lists!  While both identify suppliers for future needs however FA sets out the T & Cs and the scope of future needs of PE while Supplier List does not!

6. www.bangor.ac.uk/law Terminologies  Some countries in Africa  Running rates/ term contracts  Australia  Panel arrangement  Canada  Supply arrangements; Standing offers  USA  Indefinite delivery/indefinite quantity (ID/IQ);  Task order contracts  European Union  Periodic or recurrent contracts;  Purchase arrangements;  Umbrella contracts.

7. www.bangor.ac.uk/law Benefits of FA (1)  Enhances administrative efficiencies;  Can help to achieve process efficiencies through reduced transaction costs, procedural costs and reduction in time;  Useful for urgent or emergency procurement;  Can guarantee readiness and security of supply.

8. www.bangor.ac.uk/law Benefits of FA (2)  Improves performance in simple and low value repeat procurement;  Can enhance SME participation;  Can enhance competition through aggregation; and  Increases public officials freedom to use their judgment to enhance VfM.

9. www.bangor.ac.uk/law Setting up  Stage 1 - Master contract  Identification of one or more suppliers on the basis of a tender or similar offer and conclusion of the FA for the future supply  Stage 2 – Procurement contract  When the need arises, PE places an order or enters into a procurement contract

10. www.bangor.ac.uk/law Models  Model 1  Close, Complete, Limited  Model 2  Close, Incomplete, Limited with second stage competition  Model 3  Open, Incomplete with second stage competition  May or may not be limited

11. www.bangor.ac.uk/law Participants in FA

12. www.bangor.ac.uk/law Countries Perspectives (1) Countries with explicit legal provisions on FA Perspectives EU MS especially France, Denmark, Finland, Iceland, Sweden, and UK Models 1 & 2 as FA (***Model 3 as DPS) Detailed regulation (with some gaps - second stage of the procedure) e.g, rules on conditions for use, identity of users and duration USAModels 1, 2 and 3 Regulation but a lot of procedural flexibility leading to over use

13. www.bangor.ac.uk/law Countries Perspectives (2) Countries with explicit legal provisions on FA Perspectives Africa *Uganda, Tanzania, *Malawi, Ethiopia, Rwanda, *Burkina Faso, Mali, *Niger, Senegal  Most use Model 1 but Malawi and Ethiopia also use Models 2 and 3  Variable detail in regulations (on conditions for use, limits on use, maximum duration)  Hindrance – rules on aggregation

14. www.bangor.ac.uk/law FA IN UNCITRAL MODEL LAW

15. www.bangor.ac.uk/law Criticisms of FA  Risks to transparency  Limits market access  Overuse  Complex design issues  Anti-competitive conduct on the part of suppliers - collusion  Discretion of procurement officers at the call-off stage

16. www.bangor.ac.uk/law Addressing some criticisms (1)  e-Procurement can complement FA  Examples,  South Korea – MAS;  EU

17. www.bangor.ac.uk/law Addressing some criticisms (2)  PE can use e-Procurement to strengthen:  Strengthen  the decision making process around setting up and organizing FA;  planning of FA  management of FA;  Develop use of FA when appropriate;  Flag the abuse of framework agreements or their inefficient use; and  leverage full potential of framework agreements.

18. www.bangor.ac.uk/law Summary  Differences between the design and regulation of FAs in different systems  Transfer experience with care!  Key decisions:  Whether or not to introduce;  Design;  Needs to reflect capacity of its participants  System may need to by dynamic  Monitoring arrangements;  Sufficient procedural safeguards to protect transparency and competition;  How to address breaches of procedure.

19. www.bangor.ac.uk/law Dr Ama Eyo Lecturer and Public Procurement Specialist Institute for Competition and Procurement Studies Bangor University, North Wales, United Kingdom a.eyo@bangor.ac.uk Thank you – any questions?