Framework agreement
A framework agreement (article 39 of Law 4412/2016) is an agreement between one or more contracting authorities and one or more economic operators that sets the terms of the contracts to be awarded over a given period, in particular prices and quantities. The agreement itself is not an order. Orders are placed through call-off contracts during its term, without a new open tender.
How call-offs are awarded
It depends on how many operators are in and on whether the terms are fixed.
- One contractor. Call-offs are awarded on the terms of the agreement. The authority may ask in writing for the offer to be supplemented, not for new competition.
- Several contractors, all terms fixed. The authority awards without reopening competition, by objective criteria set in the agreement, for example by ranking or by allocation of shares.
- Several contractors, open terms. The authority runs a mini-competition among the parties to the agreement: it requests offers in writing, allows a reasonable deadline, opens them after it expires and awards to the best offer under the agreement's award criteria.
Call-off contracts may not substantially modify the terms of the agreement, but they may be performed after it expires if they were signed within its term. The framework agreement is always subject to the Court of Audit's pre-contractual review; call-off contracts only if they exceed the relevant thresholds on their own.
Dynamic purchasing system
A dynamic purchasing system, DPS (article 33), is a completely electronic process for commonly used goods and services generally available on the market. Its fundamental difference from a framework agreement is that it stays open: any economic operator meeting the selection criteria may apply to join at any time during its term, and the authority must assess the application within ten working days, extendable to fifteen.
The system follows the rules of the restricted procedure. The authority publishes a notice with a minimum of 30 days for the initial requests to participate, admits those who meet the criteria and then, for each specific purchase, invites all admitted members to submit an offer with a deadline of at least ten days. It may be divided into categories of products or services with separate criteria. No participation guarantee is required.
The differences at a glance
| Element | Framework agreement | Dynamic purchasing system |
|---|---|---|
| Who takes part | Closed circle, those selected in the initial tender | Open, admission at any time |
| Duration | Up to 4 years | As set in the notice, no fixed ceiling |
| Subject matter | Any type of contract | Commonly used goods and services |
| Individual awards | Without competition or by mini-competition | Always by an invitation to all members |
| If you miss the start | You stay out until it expires | You apply to join later |
Why it matters: the case of health
In the health sector the National Central Health Procurement Authority, ΕΚΑΠΥ, established by Law 4472/2017, runs central tenders for pharmaceuticals, medical supplies and services on behalf of all public hospitals, through framework agreements and dynamic purchasing systems. A medical device supplier that does not get into ΕΚΑΠΥ's framework agreement for its category loses access to dozens of hospitals at once, for the whole term. The National Central Purchasing Authority for central government supplies and the central purchasing bodies of ministries work in the same way.
The practical conclusion: tenders for framework agreements and DPSs deserve attention out of proportion to their nominal value, because they decide access to every order that follows. In ΚΗΜΔΗΣ they appear under their procedure type and, in TED, with an express indication that the notice concerns a framework agreement.
The GOVADI platform flags tenders for framework agreements and dynamic purchasing systems and shows you, through the call-off contracts that follow, which suppliers are already inside each agreement and what volume of orders they receive.
Frequently asked questions
What is a framework agreement?
An agreement between contracting authorities and one or more suppliers that sets the terms, in particular prices and quantities, of the contracts to be awarded over a period of up to four years. Orders are placed through call-off contracts without a new open tender.
How long does a framework agreement last?
Up to four years, save in exceptional and duly justified cases related to its subject matter. Call-off contracts signed within its term may be performed after it expires.
Can I join a framework agreement after it is concluded?
No. The circle of contractors closes on signature. In a dynamic purchasing system, by contrast, you may apply to join at any time during its term, provided you meet the selection criteria.
What is a dynamic purchasing system?
A completely electronic process for commonly used goods and services, open to any interested operator meeting the selection criteria for its whole term. Each specific purchase is made by an invitation to all admitted members to submit offers.
Is a participation guarantee required in a framework agreement?
No. The law expressly exempts framework agreements and dynamic purchasing systems from the participation guarantee. The performance guarantee of the agreement is set at 0.5% of its total value.