Multi Supplier Framework Agreement

Multi Supplier Framework Agreement Template for South Africa

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Key Requirements PROMPT example:

"Need a Multi Supplier Framework Agreement for our IT services procurement division, covering 5 pre-qualified suppliers in South Africa, with specific focus on cybersecurity compliance and B-BBEE Level 1-2 requirements, to be implemented by March 2025."

Document background

The Multi Supplier Framework Agreement is designed for organizations in South Africa seeking to establish long-term relationships with multiple suppliers for recurring procurement needs. This agreement type is particularly valuable when an organization requires flexibility in supplier selection while maintaining standardized terms and competitive pricing. It enables efficient procurement processes by pre-qualifying suppliers and establishing standard terms, reducing administrative burden and ensuring consistent service delivery. The framework complies with South African legislation, including the Competition Act, B-BBEE requirements, and where applicable, the Public Finance Management Act. It includes mechanisms for supplier rotation, mini-competitions, or direct award procedures, depending on the specific needs of each call-off contract. The agreement is structured to accommodate various sectors and can be customized to include sector-specific requirements while maintaining its core framework nature.

Suggested Sections

1. Parties: Identification of the contracting authority and framework providers

2. Background: Context of the framework agreement and its purpose

3. Definitions and Interpretation: Defined terms, interpretation rules, and hierarchy of documents

4. Framework Structure: Overview of how the framework operates, including ranking/allocation of work

5. Duration: Term of the framework agreement, including extension options

6. Scope of the Framework Agreement: Details of goods/services covered and geographical scope

7. Award Procedures: Process for awarding call-off contracts under the framework

8. Obligations of the Framework Providers: Core responsibilities and service delivery requirements

9. Framework Manager and Key Personnel: Management structure and key roles

10. Prices and Payment: Pricing mechanism, payment terms, and price adjustment provisions

11. Performance Management: KPIs, monitoring, and reporting requirements

12. Intellectual Property Rights: Ownership and usage rights of IP

13. Confidentiality and Data Protection: Protection of confidential information and POPIA compliance

14. Liability and Insurance: Liability limits and required insurance coverage

15. Force Majeure: Handling of events beyond reasonable control

16. Termination: Grounds and process for termination

17. Dispute Resolution: Process for resolving disputes

18. General Provisions: Standard boilerplate clauses including notices, amendments, etc.

Optional Sections

1. B-BBEE Requirements: Detailed B-BBEE obligations when framework specifically includes transformation goals

2. Environmental Requirements: Environmental standards and compliance when framework includes sustainability objectives

3. Information Security: Additional IT security requirements for frameworks involving sensitive data or IT services

4. Parent Company Guarantee: Requirements for parent company guarantees when dealing with subsidiary companies

5. Staff Transfer and Employment: TUPE-style provisions when service provision may involve staff transfers

6. International Trade: Additional provisions for frameworks involving cross-border trade

7. Innovation and Continuous Improvement: Specific provisions for frameworks where innovation is a key requirement

8. Government Security Requirements: Additional security provisions for government contracts

Suggested Schedules

1. Schedule 1 - Specifications: Detailed technical specifications of goods/services

2. Schedule 2 - Pricing Schedule: Detailed pricing information including rate cards

3. Schedule 3 - Framework Providers: List of approved suppliers and their rankings/categories if applicable

4. Schedule 4 - Award Criteria: Detailed criteria for awarding call-off contracts

5. Schedule 5 - KPI Schedule: Detailed performance indicators and measurement methodology

6. Schedule 6 - Form of Call-off Contract: Template contract for individual call-offs

7. Schedule 7 - Contract Management: Detailed procedures for contract management

8. Schedule 8 - Tender Submission: Original tender submissions incorporated by reference

9. Schedule 9 - Processing of Personal Information: POPIA-compliant data processing details

10. Schedule 10 - Business Continuity and Disaster Recovery: Detailed BCDR requirements and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Public Sector

Healthcare

Information Technology

Construction

Professional Services

Manufacturing

Retail

Transportation and Logistics

Energy and Utilities

Financial Services

Education

Telecommunications

Relevant Teams

Legal

Procurement

Supply Chain

Finance

Operations

Risk and Compliance

Commercial

Vendor Management

Strategic Sourcing

Contract Management

Relevant Roles

Procurement Director

Legal Counsel

Contract Manager

Supply Chain Manager

Commercial Director

Chief Financial Officer

Procurement Officer

Vendor Manager

Category Manager

Operations Director

Risk Manager

Compliance Officer

B-BBEE Manager

Strategic Sourcing Manager

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