1. What is a framework agreement?
A framework agreement is an agreement with selected suppliers. The suppliers agree to supply a certain commodity at a certain price for a particular period of time. Framework agreements are established for commodities where there is a high demand for large quantities of the same commodity.
2. What are the benefits of a framework agreement?
Framework agreements benefit both purchaser and supplier. Purchasing goods through a framework agreement means that cost, quality, quantity and delivery terms can be more easily controlled. Framework agreements have the following benefits:
- orders can be placed immediately without a tendering process
- goods are available for the exclusive use of the International Red Cross and Red Crescent Movement
- goods are available on demand and at an agreed price
- goods are strategically positioned at the right location
- goods meet the specifications of the emergency items catalogue
- quality of goods is guaranteed
- goods are produced by reliable suppliers with a long-term commitment
Members of the International Red Cross and Red Crescent Movement can take advantage of framework agreements and avoid the lengthy process of tendering, inspecting samples, selecting suppliers and awarding contracts. Framework agreements guarantee product quantity and quality at an agreed price with delivery within an agreed timeframe – all with one requisition form.
Suppliers also benefit by having a guaranteed order over a particular period of time with the additional advantage of higher order volumes.
3. How long does a framework agreement last?
The IFRC usually sets framework agreements for a two-year period.
4. Which commodities are procured under framework agreements
We use framework agreements for standard emergency items such as kitchen sets, blankets, jerry cans, mosquito nets, health kits and vehicles, among others. Framework agreements are used for commodities where there is a high demand for large quantities of the same commodity. View a list of current framework agreements and the commodities they cover.
5. Who decides which commodities should be procured under a framework agreement?
The decision to establish a framework agreement is based on a number of factors: needs assessment, frequency and volume of orders. The zonal logistics units in Kuala Lumpur, Panama, Beirut, Nairobi and GLS office in Dubai take an active role in collating this information. The units then make recommendations to the Geneva-based team, which approves the plan to establish a framework agreement and specifies the type of agreement and the duration.
6. Can suppliers still bid to supply commodities under a framework agreement?
Yes. Suppliers are selected based on their professionalism and knowledge, as well as price, reliability, production capacity, stock availability and previous performance.
7. How do I purchase goods under a framework agreement?
You follow the same process as you would for goods that are not covered by a framework agreement. The team that deals with your request will know if a framework agreement is in place or not.
8. Are there any legal obligations associated with framework agreements?
Yes. All members of the IFRC’s secretariat (including Geneva, zone offices and delegations) are legally obliged to use framework agreements if they exist. Exceptions will only be considered if:
- there is an extremely urgent need for immediate delivery of goods
- there is a need for higher volumes than the supplier can provide
In both cases, written approval from the Geneva-based team is needed before you can proceed with an alternative procurement option.