Overview

An action note published by the Office of Government Commerce ("OGC") on 12 July 2010 highlights concern about the use of framework agreements set up by non- contracting authorities and which are currently being promoted as compliant with the procurement regime, particularly in the energy supplies sector.

However, such arrangements do not comply with the Public Contracts Regulations 2006 ("the Regulations") and their use carries risk.

Organisations that are neither 'contracting authorities', nor 'demonstrably' act as its agent, cannot set up framework agreements to comply with the Regulations because there must be "an agreement or other arrangement between one or more contracting authorities and one or more economic operators".