What is a ‘call-off’ and how to get the process right – Procurement Essentials

What is a call-off?

We know that public sector procurement terminology can be confusing. We often get asked by buyers and suppliers what is meant by a ‘call-off’? 

In simple terms, a call-off is just another way of saying a contract between a buyer and a framework supplier that has been placed through a framework.  You may also hear the phrase ‘call-off contract’, which means the same thing.

It is normal to see multiple call-off contracts, by multiple buyers, under one framework. 

What is the call-off process?

A call-off process is a set of instructions a buyer must follow when buying through a framework.  Direct award or further competition tend to be the most common buying processes available, depending upon the framework you wish to use. 

You are able to call-off through any Crown Commercial Service (CCS) framework to meet the needs of your organisation.

How do I run a call-off process?

Before undertaking a call-off process it is it important that you, as a buyer:

• Check which buying processes are available through the framework you have chosen: As mentioned above, direct award and further call-off competition are often the 2 main buying processes but you must check what is allowed under the framework you wish to use.

• Read the call-off contract terms and conditions for the framework you wish to use: Bear in mind that each CCS framework will have its own set of call-off terms and conditions. These may vary framework to framework due to the different markets and scope of products or services being bought through them. 

The next step is to carefully follow the buying process of your chosen framework to ensure your own process, and the outcome from it, is compliant with procurement regulations. 

Most of CCS’s frameworks are supported by buyer guidance which can be accessed through our website, by searching for the specific commercial agreement on our Search Agreements page.

What happens at the end of a call-off process?  

Once the most suitable framework supplier for your requirement has been identified, after you have closely followed a framework’s call-off process, it is strongly recommended that you complete and sign a call-off contract with the framework supplier.  This will create a  legally binding agreement – a call-off contract.  

A framework does some of the heavy lifting for you and gives significant protection from commercial risks, however, even under a framework you are still a contracting body and must make your own assessments of potential risks, such as a supplier failing to deliver.

Without a call-off contract, it could lead to unhelpful disputes as to what has been agreed or contracted for. This adds unnecessary time and cost to the process.  Only once the call-off contract has been signed should the delivery of your required goods or services begin.

At call-off you still have to develop and agree the details of the contract to suit your circumstances, and then manage the supplier’s performance. In some situations you may need to obtain your own legal advice.

What should you think about when completing your call-off contract document?

A call-off contract should contain specific information relating to key deliverables and the types of goods and services you are buying.  This information would have been outlined and captured as part of your call-off process and could include (but is not limited to):

• what will be supplied and when
• how it will be supplied
• how much the goods / services will cost
• what insurance requirements need to be put in place
• contact details for suppliers and buyers
• Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) to allow you to ensure successful delivery, and offer protection if there are any issues. 

What are the benefits of using call-off contracts?

Pre-agreed terms and conditions: CCS will set out the terms and conditions for call-off contracts up front when putting a framework in place.  This means all suppliers who win a place on a CCS framework will have seen and agreed to use those call-off terms and conditions when contracting with buyers. This reduces time and legal costs because there is no need to draft a contract from scratch and it increases clarity for both buyer and supplier around the terms upon which the call-off contract will be formed.  

Cost savings: When organisations enter into call-off contracts with framework suppliers, they are able to lock in predetermined prices for goods and services. This can lead to significant cost savings over time. For example, in the case of large projects, which could last for months or even years, a call-off contract will help to ensure that the works remain within budget by locking in prices for an agreed period within the contract.

Stability: Another benefit is increased predictability and stability. By having a contract in place, you can be more certain about the availability of goods and services from your suppliers.This can help to avoid disruptions in the supply chain and ensure that your organisation has the resources it needs to operate smoothly.

Improved collaboration: Finally, call off contracts can help to build strong relationships with suppliers. Organisations can develop a deeper level of trust and understanding with their suppliers. This can lead to improved communication and collaboration, which can further enhance the efficiency of the supply chain.

The Public Sector Contract – saving you time on your procurement

We know that buyers and suppliers spend a lot of time reading and completing documents during the procurement process and that these can often be complex, which can be problematic for those organisations which have limited in-house procurement knowledge. 

To help to address this, CCS has been moving towards use of standardised terms and conditions to create an easier, yet flexible route to market for our buyers. 

The Public Sector Contract (PSC) is CCS’s standard terms and conditions for its framework agreements. It sets out the terms and conditions for both the framework contract and any call-off contracts being formed beneath it. Wherever possible, CCS will use the PSC as its starting point when creating its frameworks with the aim of creating a more consistent experience with CCS contracts whilst keeping them flexible enough for the broad range of products and services that buyers might need.   

Please note that not all CCS frameworks will use the PSC due to the nature of the market or products and services being bought under it.  Remember, it is important to always check and read the call-off contract terms for the framework you have chosen for your requirement.

Help and support

If you require support with using any CCS agreements, please do not hesitate to contact us on 0345 410 2222 or info@crowncommercial.gov.uk.

Did you know CCS also provides a free, end-to-end, Assisted Procurement Service that can help public sector customers save time and money? 

More: You can now find all of our Procurement Essentials articles in one place on our website. 

More information and guidance for public and third sector buyers, as well as full details of all of our commercial agreements, can be found in the latest digital brochure.