Framework Agreements vs Contracts

Why “on a framework” ≠ “won the work”

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Public-sector suppliers often tell us, “We got onto the framework—so when does the work start?” Short answer: it doesn’t—not until you win a call-off. Being appointed to a framework (or DPS) is permission to compete. A contract is what you win afterwards, order by order. Confusing the two burns quarters, not just days.

What a framework really is:

A framework agreement is a pre-procured, legally compliant route to market. It sets the umbrella terms: scope, commercial model, call-off terms, supplier list, and the rules for awarding future work. Think of frameworks like CCS G-Cloud, CCS Technology Services, YPO IT Managed Services, NHS SBS Hard FM, or Everything ICT. They exist to save buyers time later—not to hand suppliers guaranteed revenue.

Key properties:

  • Fixed supplier list (for frameworks) or open entry (for DPS) during the agreement’s life.
  • Pre-agreed T&Cs and pricing basis (rate cards, catalogues, or discount structures).
  • Award mechanisms: direct award (if the framework rules allow it and the buyer can justify it) or further competition (mini-competition).

That’s it. No purchase order, no deliverables, no revenue—yet.

What a contract is:

A contract is the call-off you win under that framework: a signed order form with a scope, price, milestones, KPIs, and start/end dates. It’s the moment risk, obligations, and payment terms attach to you. Contracts are specific; frameworks are generic. You don’t invoice the framework—you invoice the call-off.

Why so many agencies get stuck in “framework limbo”

There are three common traps:

  1. Assuming “listed = preferred.” Buyers don’t owe you anything because you’re on the list. They owe the process—not the supplier.
  2. Waiting for the phone to ring. Most frameworks push opportunities via mini-competitions issued through a portal (Jaggaer, Atamis, Proactis, SAP Ariba) or via the framework owner’s tool. If you’re not actively watching and engaging, you’ll miss them.
  3. Generic positioning. Your framework application might have showcased capability; your call-off needs to solve a buyer’s specific outcome (site, SLA, TUPE, integrations, service wrap, social value in context, etc.).

How call-offs actually work (in practice)

Further competition. The buyer issues an Invitation to Further Competition (ITFC) to all relevant suppliers on the lot (or a subset using a capability filter). You respond with:

  • A tailored method statement that maps precisely to the buyer’s outcomes and constraints.
  • A commercial response priced to the call-off (not just your framework rate card).
  • Proofs: case studies relevant to the buyer’s context, references, CVs, implementation plan, risk/SLA model, social value delivery plan tied to their place and priorities.

Direct award. Some frameworks allow it when:

  • The buyer can objectively identify the best-fit supplier from the catalogue/price list; or
  • The requirement is uniquely matched to one supplier’s pre-agreed offering; or
  • Urgency/continuity applies within the framework’s rules.

Don’t bank on direct award. Treat it as a bonus, not a pipeline strategy.

DPS vs. Framework: the nuance that bites

A DPS (Dynamic Purchasing System) is “always open”: suppliers can join any time if they meet the entry criteria, and buyers still run mini-competitions for each requirement. Getting onto a DPS is even less predictive of revenue than a closed framework: the pool can grow, and competition often increases over time. Plan accordingly.

What to do the moment you’re appointed

  1. Operationalise your route to market—don’t just announce it on LinkedIn.
    • Map the framework lots to your offers, delivery footprint, and margins.
    • Load your catalogue/rates correctly; test the buyer’s view (are your SKUs/findability right?).
    • Build a call-off playbook: boilerplates for method statements, risk registers, mobilisation plans, and a social-value menu you can localise per buyer.
  2. Make yourself findable to buyers.
    • Write offer pages on your site that mirror the framework’s categorisation and keywords.
    • Publish light, buyer-centric one-pagers for each lot: scope in, scope out, what to expect at call-off, typical SLAs, onboarding timeline.
  3. Stand up a “mini-competition engine.”
    • Build a triage grid: go/no-go criteria, win themes, red flags (scope creep, impossible KPIs, TUPE exposure, unprofitable geos).
    • Create a content library aligned to common evaluation criteria: service design, security, data protection, accessibility, risk, implementation, training, continuous improvement, exit.
    • Pre-price the 80% scenarios so you can respond in hours, not weeks.
  4. Proactive pipeline.
    • Track upcoming expiring contracts via public notices and the framework owner’s pipeline updates.
    • Engage early (legally): supplier days, soft-market testing, clarifications—not sales pitches, but smart questions that shape the spec.
  5. Governance and MI.
    • Set internal KPIs: number of competitions seen, PQQ/ITT conversion, award conversion, average margin per call-off, mobilisation NPS.
    • Feed wins/losses back into pricing and narrative.

Pricing reality: your framework rates are the ceiling, not the plan

Framework pricing is often a cap or a baseline. At call-off, buyers expect competitive tension to sharpen numbers. Build a pricing model with:

  • Floor (walk-away) based on fully loaded delivery cost and risk allowances.
  • Target margin for BAU.
  • Stretch margin for complex/urgent/low-competition scenarios.
  • Clear assumption log (volumes, response times, out-of-hours, TUPE, tech stack, travel) so variations don’t wipe out your P&L.

Social value and place-based delivery (where many bids stumble)

Don’t paste generic social-value promises. Tie tangible commitments to the buyer’s locality and outcomes (apprenticeships, local supply chain, carbon reductions, volunteering aligned to their objectives) and show how you’ll measure and report them through the call-off term. Include a monthly measurement cadence in your mobilisation plan.

Common mistakes—and how to avoid them

  • Mistake: Treating “on the framework” as a PR finish line.
    Fix: Treat it as day zero. Allocate a named owner, a cadence, and a measurable pipeline.
  • Mistake: Re-submitting your framework application text in mini-competitions.
    Fix: Rewrite to the specific requirement and scoring matrix. Mirror the buyer’s language. Answer exactly what’s asked—no more, no less.
  • Mistake: Under-estimating mobilisation and transition risk.
    Fix: Include a credible, resourced Gantt with dependencies, cutover risks, and contingency.
  • Mistake: Pricing to win, then bleeding in delivery.
    Fix: Price to deliver safely. If the buyer’s budget is unrealistic, say so early with alternatives.
  • Mistake: Waiting for tenders to appear.
    Fix: Pre-engage: supplier days, PINs, intel calls—professionally and transparently.

Quick checklist: are we set up to convert frameworks into revenue?

  • We know which lots we will actually pursue—and which we will ignore.
  • Our catalogue/rates are accurate and discoverable.
  • We have a mini-competition engine: templates, case studies, CVs, pricing model, mobilisation plan, social-value menus.
  • We monitor portals daily and maintain a forward expiry pipeline.
  • We hold a win/loss review after every call-off and adjust pricing/narrative.
  • We measure conversion and margin at call-off level, not just “how many frameworks we’re on.”

Bottom line

Frameworks create opportunity; contracts create cashflow. Getting onto a framework, DPS, or catalogue means a buyer can buy from you—not that they will. The agencies that win consistently don’t wait for luck or direct awards; they operationalise the route to market, build a repeatable mini-competition machine, and treat every call-off like a high-stakes, well-targeted sale.

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