Call-off

A call-off (avrop) is the word used in practice for an order under a framework agreement. The Public Procurement Regulations (anskaffelsesforskriften) do not use it; the § references on this page are to the Regulations unless the Act is named. The Regulations say «award contracts under the framework agreement» and, when competition is opened again, «reopen the competition» or «a new competition between the suppliers». The directive's wording is «contracts based on a framework agreement» and «reopening competition». The word mini-competition (minikonkurranse) is not in the Regulations either.

How the call-off is awarded depends on the agreement and on which part of the Regulations it falls under. Under Part III, with one supplier, the contract is awarded on the terms of the agreement, and the contracting authority may, where necessary, ask the supplier in writing to supplement its tender (§ 26-2); under Part II, the objective rules in the procurement documents decide (§ 11-1 (2)).

With several suppliers, the award depends on which part of the Regulations the agreement falls under. Under Part III, which applies at or above the EEA thresholds for supply, service and works contracts, the contracting authority must use an allocation key (fordelingsnøkkel) set out in the procurement documents when the agreement sets out all the terms, and cannot freely choose the supplier. When the agreement does not set out all the terms, the contracting authority must hold a renewed competition (ny konkurranse) between the suppliers, what people call a mini-competition. The agreement may also combine the two. Under Part II, which applies from NOK 1.3 million up to the EEA thresholds (except health and social services), and to special services (særlige tjenester) from NOK 1.3 million with no upper limit, the contracting authority must award on the basis of objective rules set out in the procurement documents. Where those rules reopen the competition, the time limit must be sufficient and the contract must go to the best tender.

In a renewed competition under Part III, the contracting authority must consult in writing the suppliers capable of performing the contract, set a sufficient time limit for tenders, receive written tenders that are not opened before the time limit expires, and award the contract to the best tender on the basis of the award criteria in the framework agreement.

If you are on a framework agreement, call-offs are what bring revenue. Advice: first read which mechanism the agreement uses. It decides what you can do to win.

The Regulations do not say how an allocation key is to be designed, so read the key in the tender documents. With a cascade (fossefall), where the call-off is offered to the highest-ranked supplier first and moves on if that supplier cannot deliver, and with a fixed percentage share, the allocation follows mainly from the ranking in the competition for the agreement. Then capacity is what you can influence. With a needs-based model (behovsmodell), the specific assignment decides who gets it, for example on price or competence, and then what you offered in the agreement counts.

In a renewed competition you must submit a new tender each time. The criteria must be set out in the procurement documents of the framework agreement. They may be the same as in the competition for the agreement, or different ones. The contracting authority may make them more precise, for example the weighting of sub-criteria, unless the agreement has locked the weightings. The time limit must be sufficient, and under Part III the contracting authority must take into account the complexity of the contract. For a pure price competition, a few days may be enough, according to DFØ (the Norwegian Agency for Public and Financial Management). The tender is submitted in writing as the procurement documents require. Ordinary email does not work, because according to DFØ it conflicts with the requirement for confidentiality. After a renewed competition, the contracting authority must require the selected supplier to submit updated documentary evidence without delay before the contract is awarded; this does not apply to awards without a renewed competition (§ 8-10 (2) in Part II and § 17-1 (5) in Part III).

Contracts under a framework agreement as a rule do not have to be advertised, and the requirement for a standstill period (karensperiode) does not apply. The contracting authority may still choose to have a voluntary standstill period. After a renewed competition, you must receive notification of the choice of supplier, with the reasons. Advice: keep track of the invitations from the contracting authorities on the agreement.

A municipality has a framework agreement for consultancy services with three suppliers, A, B and C. The agreement sets hourly rates, but not the content of each assignment, so the municipality must hold a renewed competition. It sends the description of the assignment in writing to the three, with a time limit for tenders. B replies that it has no capacity. A and C submit tenders. The municipality assesses the tenders against the criteria in the framework agreement, price and competence, and C gets the highest score and the contract. A and C receive notification of the choice of supplier, with the reasons. Had the agreement instead set out all the terms and a cascade model, the municipality would have offered the assignment to the highest-ranked supplier first, and gone to the next if that supplier could not deliver.