Financial Management Authority

Direct purchases under framework agreements

The buyer reviews the agreement’s terms in the Financial Management Authority’s contract management system, including prices, discounts, the basket of goods, service descriptions and other contractual terms. The buyer then contacts the supplier and completes the purchase on the terms specified in the agreement.

Direct purchases under an agreement with multiple suppliers

If a framework agreement is concluded with multiple suppliers, the method for selecting a supplier for a direct purchase must be clearly established. The method is determined separately for each framework agreement and may therefore vary between agreements.

Under some framework agreements, direct purchases may only be made from the supplier offering the most favourable terms based on the outcome of the tender. If that supplier cannot deliver the goods or services or cannot meet the buyer’s needs under the terms of the agreement, the buyer may need to contact the next-ranked supplier or hold a mini-competition, as specified in the agreement.

Under other framework agreements, direct purchases may be permitted from more than one supplier. In such cases, the buyer must follow the objective method described in the agreement, such as selection based on price, discount, supplier ranking, delivery time, the ability to meet the buyer’s needs or other predetermined criteria.

The buyer begins by reviewing the terms of the relevant framework agreement.
1. These terms include information on whether direct purchases are permitted, which suppliers are parties to the agreement, and which method must be used to select a supplier.
2. If the framework agreement is a central agreement administered by the Financial Management Authority, the buyer reviews the terms in the Authority’s contract management system.
The buyer compares the terms applicable to the purchase, as specified in the agreement. This may involve reviewing a basket of goods, price list, discount table, service description, delivery terms or other information accompanying the agreement.
The buyer selects a supplier using the method prescribed by the framework agreement. The selection must not be arbitrary; it must follow the agreement’s objective, predetermined criteria.
The buyer contacts the selected supplier, for example by email, and requests to make a purchase under the framework agreement. The relevant information must appear on the order, invoice, receipt or delivery note. When communicating with the supplier, it is important to refer to the relevant framework agreement and specify what is being purchased, the quantity, delivery requirements and any other relevant information.
The supplier confirms that the goods or services can be delivered in accordance with the terms of the framework agreement. If the supplier cannot fulfil the request, the buyer must follow the instructions set out in the agreement—for example, by contacting the next supplier or holding a mini-competition, where applicable.
Once confirmation has been received, the buyer completes the purchase directly with the supplier in accordance with the terms of the framework agreement.
The buyer retains records of the purchase, such as email correspondence, the order, the supplier’s confirmation and information on how the supplier was selected. This is important for demonstrating compliance with the terms of the framework agreement.

Direct purchases must be made in accordance with the authorisations, terms and procedures set out in the relevant framework agreement.

The buyer must therefore always verify:

that direct purchases are permitted under the agreement;
which suppliers may be used;
which method must be used to select a supplier;
whether the purchase falls within the scope of the agreement; and
whether a mini-competition is required instead of a direct purchase.

If there is any uncertainty about the correct procedure, the buyer should consult the detailed guidance accompanying the framework agreement or contact the Financial Management Authority before making the purchase.

Financial Management Authority

Direct purchases under framework agreements

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Direct purchases under an agreement with a single supplier

Direct purchases under an agreement with multiple suppliers

Financial Management Authority

Direct purchases under framework agreements

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Direct purchases under an agreement with a single supplier

Direct purchases under an agreement with multiple suppliers

How are direct purchases made?

Important considerations for direct purchases