A framework agreement is a long-term arrangement between a public buyer and a group of pre-approved suppliers, setting out the terms under which future contracts (known as "call-offs") will be awarded. Rather than running a full tender for every individual requirement, buyers can draw down from a framework quickly, saving time and cost on both sides.
Most frameworks are split into lots, grouping suppliers by specialism, region, or contract size, so buyers can approach only the suppliers relevant to their need. Appointment onto a framework typically works one of two ways: a ranked or cascade model, where buyers approach suppliers in a set order, or an open panel, where all appointed suppliers are eligible for every call-off. When it's time to actually award work, buyers either run a mini-competition between shortlisted suppliers on the framework, or make a direct award to a single supplier where the framework rules allow it.
The Procurement Act 2023 has reshaped how frameworks work, and it's worth knowing the changes if you're bidding in 2026. Closed frameworks, where the supplier list is fixed for the whole term, are now capped at four years (eight years for utilities and defence frameworks). Alongside these, the Act introduces open frameworks: multi-term agreements that reopen at set intervals, allowing new suppliers to join partway through rather than being locked out until the whole framework re-procures.
Supplier-facing processes have changed too. Businesses now register once on the Central Digital Platform, sharing core information across bids rather than resubmitting it every time. Buyers must publish assessment summaries explaining why suppliers won or lost, and contracts above threshold values require publication of KPI performance data, giving far more visibility into how suppliers are actually performing on live contracts.
For SMEs, this all means more entry points, more transparency, and less risk of being shut out for years at a time.