On this page you will find answers to some of the most asked questions about NTNU's framework agreements.

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General questions

Why are framework agreements necessary?

When NTNU collectively spends over 100,000 kroner (kr., NOK) annually on a product or service, it triggers compliance with public procurement regulations. In these instances, we must either establish framework agreements for the entire organization or conduct individual competitions each time we need to procure this type of product or service. Given the significant time and resources this would require, opting for framework agreements is often the preferred solution.

Moreover, this approach can offer economic benefits for NTNU. As a large organization, we can often secure more favorable prices and advantages through framework agreements compared to individual purchases.

Some of the framework agreements we have today include catering, PCs and PC equipment, flowers, rental cars, and credit cards – to name a few.

A full overview of all our current agreements are available in NTNUs Contract Catalogue. (All employees have access to this catalogue, but you need to use NTNUs network or VPN to get access.)

Are employees required to use NTNU’s framework agreements?

Yes, generally speaking, they are.

Exceptions to using these agreements are rare and only allowed under specific circumstances. This occurs when the suppliers we have agreements with cannot fulfill our requirements. In such cases, the purchase must undergo a separate competitive bidding process.

If you require a product or service that is not provided by existing suppliers under an agreement, please fill out the procurement form in NTNU Hjelp (in Norwegian). Your request will be handled by a procurement advisor in the Financial Division.

Why is it not possible to have more than one supplier per agreement?

We can, and in many cases, we do have multiple suppliers in a single agreement.

The number of suppliers we have per agreement is assessed on a case-by-case basis. It depends, among other things, on the scope of what needs to be delivered and the value of the procurement.

An example of a framework agreement with multiple sub-contracts is our catering contract for meetings, overtime and events. We also have similar agreements with multiple suppliers in consulting, craftsmanship services, and hotel accommodation – to name a few.

The design of a framework agreement is typically a decision made by the Procurement and Purchasing Section in collaboration with a user group composed of NTNU colleagues with the necessary expertise in what we are procuring. In some cases, the section also holds hearings for leaders at NTNU, so that they are able to provide input.

I have been offered a lower price for something I need to purchase from a supplier other than the one NTNU has an agreement with. Can I buy from the supplier with the lowest price?

No. If NTNU has a framework agreement that covers what you need to purchase, this must be used.

Price and costs are always important factors when NTNU enters into new framework agreements. But, as a public organization, we must also ensure that the procurements we make are environmentally friendly and sustainable, socially beneficial, ethical, and contribute to preventing work-related crimes.

In other words, the price of individual goods and services are important, but this is only part of the overall picture when we evaluate potential suppliers in a new agreement.

How does NTNU facilitate the participation of small businesses in the purchases we make?

One way we do this is by using multiple sub-contracts within the same agreement. Instead of one large contract, the procurement is divided into smaller parts so that more suppliers can compete.

In some competitions, we have also opted to include a minimum number of small and medium-sized businesses. Our goal in doing so is to provide more opportunities for smaller suppliers to win the competition.

In other agreements, we see that several small and medium sized businesses have joined forces and compete together. In some cases, they may also be affiliated with larger companies as subcontractors in NTNU's framework agreements.

How long does a framework agreement last?

Framework agreements cannot have a duration of more than four years.

Usually, the agreements we enter into lasts for two years, with the option to extend them for up to an additional two years.

There are instances when framework agreements are terminated before the initial two-year period ends. This might occur if we've purchased more through the agreement than anticipated, if our needs have changed, or if the deliveries we receive are unsatisfactory.

What should I do if I am not satisfied with one of the suppliers NTNU has an agreement with?

If you encounter issues with specific assignments, we advise you to communicate directly with the supplier. Attempt to reach a mutual agreement with them and provide them with the chance to correct any mistakes.

If there are persistent errors and deficiencies, please contact the Financial Division. The Procurement and Purchasing Section values feedback to address concerns with the supplier during the agreement period. The section can also provide assistance with complaints that cannot be resolved locally.

When a framework agreement is entered into, what should I do with existing agreements that have been made by my unit at NTNU and that covers the same need?

If you have a specific agreement where there are assignments that have already been ordered and are well underway, this should be completed with the existing supplier. General agreements, however, must be terminated.

User groups

What does it mean to be part of a user group?

When we are entering into new framework agreements, we usually involve a user group throughout the process. Their main task is to assist the procurement advisor in the Financial Division in formulating the requirements we should set for the supplier and in evaluating the various offers that have been received.

User groups are important to us in this process. The employees who participate contribute with necessary professional expertise, and their input helps ensure that we hit the mark when drafting the agreement, in specifying the requirements, and evaluating the various suppliers.

There are usually up to five participants in each group, but there may be as many as six to eight if there is significant interest.

All invitations are posted in the channel Btb-informasjon on Innsida. In some cases, they are also announced in other channels, depending on the subject matter of the new agreement and who it will involve.

How much time should one expect to spend as a participant in a user group?

This will vary depending on the scope of the procurement.

In all agreements, there will be a fair number of meetings. This especially applies in the initial phase when we are determining the requirements for the relevant goods or services and for the suppliers. There are also some meetings in the evaluation phase after the competition has concluded.

In addition to meetings, there may also be some tasks for the participants during the process. An example of this can be to do a quality check on the documents before an agreement is publicly announced.

To summarize, each agreement will require a significant time commitment for those participating in user groups. However, we still encourage everyone who has the opportunity and the professional knowledge about the procurement to participate when appropriate and when they have the opportunity to do so. Their contributions will be important to ensure that NTNU will obtain a good agreement.

Conducting competitions

What is a mini-competition?

Certain agreements involving multiple suppliers may stipulate competition among them under specific conditions. For example, this could be required for assignments that are over a certain value.

The threshold for triggering a "mini-competition" can vary; for instance, it might be required for assignments over kr. 100,000 excluding VAT in some cases, while in others, it could be assignments over kr. 1.3 million excluding VAT.

In most of NTNU's agreements with multiple suppliers, we're obligated to ensure a nearly equal distribution of assignments in terms of monetary value among them. However, contracts secured through mini-competitions are exempt from this distribution requirement.

You can read more about mini-competitions and how they are conducted on the procurement process’ website (in Norwegian).

My unit is going to purchase a product or service, and NTNU has a framework agreement that covers this. However, the amount will be over kr. 100,000 excluding VAT. Does that mean that we need to hold a mini-competition first?

No. The requirement for mini-competitions only applies to certain framework agreements. If it applies to the agreement you are going to use, this will be clearly stated on the agreement's page in the Contract Catalogue.

When NTNU has a framework agreement in place, standard spending thresholds for public procurement no longer apply. Without such an agreement, we are obligated to conduct a competition for purchases exceeding kr. 100,000 annually. For purchases under kr. 100,000, a simplified procurement process is followed (in Norwegian). Purchases over kr. 1.3 million must adhere to Part I ("Del I") regulations.

With a framework agreement, the necessary competition has already been conducted in the market. Therefore, we can proceed with orders from the framework supplier without initiating a new competition.

The product we need to purchase is covered by a framework agreement, but the value is likely to be more than kr. 1.3 million. Does this mean a separate competition must be conducted?

No.

When NTNU has a framework agreement in place, the standard monetary thresholds dictating when a purchase must undergo procurement procedures does not apply. This is because the framework agreement has been pre-negotiated, and a competition has already been carried out in the market.

Orders through framework agreements are made via the purchase request form on ntnu.no.

Also see

• The Procurement process at NTNU (in Norwegian)

Contact

If you have other questions about procurement or framework agreements, please contact the Financial Divison.