In 2001, the International Federation introduced framework agreements with selected suppliers for standard items. Framework agreements have been established with selected suppliers and the suppliers agree to supply a certain commodity at a certain price for a particular period of time. They are used for commodities where there is a high demand for large quantities of the same commodity. Our experience shows that purchasing goods through a framework agreement is more effective in securing the right price, and guaranteeing the quality, quantity and delivery terms.
Framework agreements are also an integral part of the International Federation’s global strategy for pre-positioned stock. Suppliers working within a framework agreement also agree to reserve and store an agreed quantity of commodities either at their premises or at the regional warehouses in Dubai, Kuala Lumpur and Panama. This pre-positioning of stock means that we have a guaranteed stock level at any given time. The only exception to this is when replenishment is necessary after a large-scale sudden-onset emergency.
Framework agreements are usually established at a global level, but they may also be used for regional and local needs.
Global framework agreements
Global agreements are used for standard relief and medical items which are needed in emergency operations. Such items include blankets, mosquito nets, tarpaulins, kitchen sets, jerry cans and vehicles, among others. This is our most common type of framework agreement.
Regional framework agreements
Regional agreements are used to cover needs within a geographical region for goods that will be specifically used by communities of that region. An example of a regional framework agreement is a hygiene parcel that includes items used by beneficiaries within that specific geographical region. We use regional agreements when a more tailored approach is required.
Local framework agreements
Local agreements are used to cover local needs within a specific country. If there is a tendency for a country to buy the same commodity on a frequent basis, then it makes sense to establish a local framework agreement. We rarely use this type of agreement.