Framework Agreement Public Procurement Law

Definition: A framework agreement is an agreement between one or more public contracting authorities and one or more economic operators which sets the terms governing individual contracts to be awarded during a given period, in particular with regard to price and, where appropriate, the envisaged quantities.

Last updated: January 2026 · Legal basis: Art. 33 Directive 2014/24/EU, § 151 BVergG 2018 (AT), § 21 VgV (DE)

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What is a framework agreement?

A framework agreement is not a contract in the legal sense but a pre-contractual instrument of EU procurement law which sets the essential conditions for future individual contracts on a binding basis and thus dispenses with repeated, costly procurement procedures for similar services. It allows public contracting authorities to create a framework for recurring procurements without having to conduct a full procurement procedure in each individual case. Only the individual call-offs (individual contracts) on the basis of the framework agreement give rise to specific supply or service obligations.

Purpose and significance

Framework agreements serve to simplify and accelerate recurring procurement processes while safeguarding the principles of public procurement law. For public contracting authorities with regular needs for certain goods, services or works – such as office supplies, IT hardware, cleaning services or road works – framework agreements enable considerable administrative relief.

At the same time, framework agreements are not without risks: too broad a use can restrict competition where terms are chosen to be too long or too many contracts are bundled under one framework agreement. EU procurement law therefore sets clear limits.

Types of framework agreement

Procurement law distinguishes four basic types of framework agreement, depending on the number of contractual partners and the call-off mechanism.

With one undertaking

Framework agreements with a single undertaking are the simplest form. All conditions are fully set out in the framework agreement; individual contracts are called off directly on the basis of the agreed conditions, without renewed competition.

With several undertakings – with all conditions fully set

Where all conditions are fully regulated in the framework agreement, individual contracts are called off without renewed competition. Award takes place under objective, predefined rules (e.g. rotation principle or ranking).

With several undertakings – with conditions not fully set (mini-competition)

Where not all conditions are set in the framework agreement, individual contract awards must take place through renewed competitions (mini-competitions) between the framework partners. This requires a willingness to submit improved bids and strengthens ongoing competition.

With several undertakings – mixed system

Art. 33(5) Directive 2014/24/EU also allows a mixed system for framework agreements with several undertakings, where, depending on the type of service, partly direct call-offs and partly mini-competitions take place.

Maximum term

The term of a framework agreement may, in principle, not exceed four years; a longer term is only permissible in duly justified exceptional cases. This restriction serves to safeguard competition: framework agreements that are too long exclude undertakings not admitted to the framework agreement from the market for an unreasonable period.

Exceptions to the four-year limit are possible in the utilities sector: for contracting entities in the fields of water, energy, transport and postal services (Directive 2014/25/EU), Art. 51 provides for a term limit of eight years, since investment cycles in these sectors are typically longer.

Calculation of contract value

For determining whether the EU thresholds are reached, and thus whether EU procurement law applies, the estimated total value of all individual contracts to be awarded on the basis of the framework agreement over its entire term is decisive. This calculation rule prevents artificial splitting of procurements to avoid thresholds.

In concrete terms, this means: for a four-year framework agreement for cleaning services with an estimated annual value of EUR 80,000, the total value relevant for the threshold calculation is EUR 320,000. Since the EU threshold for service contracts is EUR 221,000 (as of 2024), the procedure would have to be put out to EU-wide tender.

Contracting authorities are required to estimate the total value realistically; deliberately underestimating it to fall below the thresholds is not permissible under procurement law.

Legal basis

The European legal basis for framework agreements is Art. 33 of Directive 2014/24/EU on public procurement. Other relevant legal sources:

• Art. 51 Directive 2014/25/EU: Framework agreements for utility contracting entities (term up to 8 years)
• Art. 33 Directive 2014/24/EU: Detailed rules for classical contracting authorities, including mini-competitions
• Recital 60 of Directive 2014/24/EU: Explanations on term and prevention of abuse
• Directive 89/665/EEC: Legal protection for awards based on framework agreements

National implementation

Austria (BVergG 2018)

In Austria, the framework agreement is regulated in § 151 BVergG 2018. Austrian law takes over the structure of Art. 33 Directive 2014/24/EU. Key regulatory points:

• The term is in principle limited to four years; a longer term is only permissible for compelling reasons relating to the subject matter of the contract (§ 151(2) BVergG 2018)
• For framework agreements with several undertakings and conditions not fully set, renewed competition (mini-competition) must be conducted
• For the contract value calculation, the estimated total value of all individual contracts over the entire term is decisive (§ 12(5) BVergG 2018)
• The framework agreement itself does not yet create an obligation on the contracting authority to actually take specific quantities

Germany (GWB / VgV / UVgO / VOB)

In Germany, § 21 VgV regulates framework agreements for supply and service contracts above the EU thresholds. For works, §§ 4a et seq. EU VOB/A apply. § 14 UVgO contains a corresponding rule for sub-threshold awards. Key aspects:

• The term is in principle limited to four years (§ 21(6) VgV)
• For framework agreements with several undertakings and conditions not fully set, renewed competition (mini-competition) under § 21(4) VgV must be conducted
• The contract value calculation under § 3(7) VgV is based on the total value of the framework agreement
• Central purchasing bodies can conclude framework agreements for several contracting authorities

Related terms

• Individual call-off: The specific commissioning on the basis of the framework agreement, which gives rise to the actual contractual relationship
• Mini-competition: Renewed competition between the framework partners where conditions are not fully set
• Dynamic purchasing system: Open, electronic procedure for commonplace procurements as an alternative to the framework agreement
• Central purchasing body: Contracting authority that concludes framework agreements for other contracting authorities
• Threshold: EU threshold decisive for the applicability of EU procurement law
• TED notice: Mandatory publication upon conclusion of a framework agreement above the thresholds

FAQ

Is the contracting authority obliged to take a specific quantity? No, in principle not. The framework agreement itself does not yet create a purchase obligation. Individual call-offs are, however, possible under the conditions set out in the framework agreement. Quantity information in framework agreements is in principle indicative.

Can the term of a framework agreement be extended? In principle, no. An extension beyond four years is only permissible in duly justified exceptional cases and must already be provided for in the original tender. Subsequent extension is not permissible under procurement law.

Can new undertakings join an ongoing framework agreement? No. A framework agreement is in principle closed to new participants after its conclusion. Undertakings not admitted to the framework agreement can only be considered in the next tender.

How are individual call-offs awarded under a framework agreement with several undertakings without a mini-competition? Awards take place under objective rules predefined in the framework agreement, e.g. on a rotation basis or by suitability ranking. Arbitrary allocation is not permissible.

Does the four-year limit also apply to utility contracting entities? No. Utility contracting entities may conclude framework agreements with a term of up to eight years (Art. 51 Directive 2014/25/EU), as investment cycles in sectors such as energy, water, transport and postal services are typically longer.

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Last updated: January 2026 All information without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.