About framework agreements

Prior to selecting an agreement, buyers should conduct some initial work to understand their requirements including scope, budget and the goods/services needed.

NHS LPP offers a variety of agreements across Digital and Technology Solutions, Estates, Facilities Management and Corporate Services, Healthcare and Pharmacy Services and HR and Workforce. These agreements fall into two main categories – framework and dynamic agreements.  

When we use the term ‘framework agreements’ generally, it covers both types of agreements i.e. frameworks and dynamic agreements. Here are some brief descriptions of these different types of agreements. 

Framework agreements

1. Framework under PCR2015: These are legacy frameworks let prior to implementation of PA23. This type of agreement allows buyers to call off using either direct award or further competition. Pricing on direct awards is determined at the contract award stage. The maximum duration of these agreements is four years.
2. Closed Framework under PA23: This is a new type of commercial agreement introduced under PA and similar to frameworks under PCR2015. Suppliers can apply for a place at the start of the agreement, but once the selection process is complete, no new suppliers are able to apply or join the framework. Pricing for direct awards are determined at the contract award stage. The typical maximum duration is four years for this agreement.
3. Open Framework under PA23: An open framework is a series of successive frameworks covering the same goods, services or works on broadly similar terms. It can operate for up to eight years and is reopened at specific intervals, giving new suppliers - and suppliers that were previously unsuccessful – opportunities to apply and join.

Dynamic Purchasing Systems (DPS): This PCR2015 commercial agreement allows customers to buy a range of goods and services. The main difference between this agreement and others is that suppliers can apply to join the agreement at any time. Buyers can award suppliers by set criteria and add to specification requirements. All NHS LPP DPS agreements will expire in 2029 as per the national ‘hard stop’ for legacy DPS arrangements to transition to the new procurement rules.

Dynamic Markets: Dynamic markets replace DPS under the new PA23 regime. Contracting authorities can still enjoy many of the same benefits of DPS with the new agreement type, but with the added benefit of improved scope of goods and services which can purchased via dynamic market agreements.