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Framework Agreement Procurement

Framework Agreement Procurement Template for Malaysia

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Key Requirements PROMPT example:

Framework Agreement Procurement

"I need a Framework Agreement Procurement contract for establishing a panel of IT service providers for our government agency in Malaysia, with the agreement starting from March 2025 and including provisions for cybersecurity compliance and regular performance reviews."

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Document background
The Framework Agreement Procurement contract serves as a cornerstone document in Malaysian procurement practices, establishing a strategic purchasing arrangement between procurement authorities and pre-qualified suppliers. This agreement type is particularly useful when organizations need to make repeated purchases over time without conducting full tender processes for each transaction. It complies with Malaysian procurement laws, including the Government Contracts Act 1949 and Treasury Instructions, while providing flexibility for various procurement scenarios. The document typically covers a fixed term (usually 3-5 years) and includes detailed provisions for call-off procedures, pricing mechanisms, performance standards, and compliance requirements. Framework agreements are especially valuable for standardizing procurement processes, achieving economies of scale, and ensuring consistent quality across multiple transactions.
Suggested Sections

1. Parties: Identification of the contracting parties - typically the procurement authority and the framework suppliers

2. Background: Context of the framework agreement, procurement objectives, and general intent of the parties

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

4. Framework Structure: Overview of how the framework operates, including duration, scope, and call-off procedures

5. Appointment and Framework Term: Terms of supplier appointment, framework duration, and extension options

6. Call-off Procedure: Detailed process for awarding call-off contracts under the framework

7. Supply Chain and Subcontracting: Rules and procedures for supply chain management and subcontractor appointment

8. Quality Standards and Performance: Required quality standards, KPIs, and performance monitoring

9. Pricing and Payment: Framework prices, pricing mechanism, payment terms, and price adjustment provisions

10. Compliance and Audit: Compliance requirements, audit rights, and record-keeping obligations

11. Confidentiality and Data Protection: Confidentiality obligations and data protection requirements

12. Liability and Insurance: Liability limitations, indemnities, and insurance requirements

13. Termination: Termination rights, procedures, and consequences

14. Dispute Resolution: Dispute resolution procedures compliant with Malaysian law

15. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

Optional Sections

1. Mini-Competition Procedure: Include when framework allows for mini-competitions between suppliers

2. Framework Categories: Include when framework is divided into different categories or lots

3. Continuous Improvement: Include for long-term frameworks requiring ongoing service improvements

4. Technology and Innovation: Include when framework involves technological solutions or innovation requirements

5. Environmental Compliance: Include when framework has specific environmental or sustainability requirements

6. Security Requirements: Include when dealing with sensitive information or critical infrastructure

7. Local Content Requirements: Include when Malaysian local content requirements apply

8. Transition and Exit: Include for complex frameworks requiring detailed exit arrangements

Suggested Schedules

1. Schedule 1 - Specification: Detailed technical and functional specifications of goods/services

2. Schedule 2 - Framework Prices: Detailed pricing schedules, rates, and pricing mechanisms

3. Schedule 3 - Call-off Terms and Conditions: Standard terms and conditions for call-off contracts

4. Schedule 4 - Call-off Procedure: Detailed procedures and forms for call-off contract creation

5. Schedule 5 - Performance Levels and KPIs: Detailed performance requirements and measurement criteria

6. Schedule 6 - Award Criteria: Criteria for awarding call-off contracts or mini-competitions

7. Schedule 7 - Template Forms: Standard forms for call-offs, variations, and other procedures

8. Schedule 8 - Supply Chain Members: Approved subcontractors and supply chain members

9. Appendix A - Framework Supplier Details: Detailed information about each framework supplier

10. Appendix B - Compliance Documents: Required certificates, licenses, and compliance documents

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Law
Award Criteria
Background IPR
Business Day
Call-off Contract
Commencement Date
Confidential Information
Contract Price
Contract Period
Contracting Authority
Deliverables
Framework Manager
Framework Period
Framework Prices
Framework Supplier
Goods
Intellectual Property Rights
Key Performance Indicators
Malaysian Ringgit
Material Breach
Mini-Competition
Ordering Procedure
Performance Security
Performance Standards
Procurement Authority
Quality Standards
Relevant Authority
Services
Specification
Subcontractor
Supply Chain
Treasury Instructions
Variation
Working Day
Clauses
Interpretation
Appointment
Duration
Framework Scope
Call-off Procedures
Mini-Competition
Pricing
Payment Terms
Performance Standards
Quality Assurance
Compliance
Supply Chain Management
Subcontracting
Confidentiality
Data Protection
Intellectual Property
Liability
Insurance
Force Majeure
Termination
Exit Management
Dispute Resolution
Anti-Corruption
Environmental Compliance
Health and Safety
Record Keeping
Audit Rights
Notices
Assignment
Variation
Waiver
Severability
Entire Agreement
Third Party Rights
Governing Law
Relevant Industries

Public Sector

Construction

Information Technology

Healthcare

Education

Infrastructure

Defense

Transportation

Energy

Telecommunications

Professional Services

Manufacturing

Facilities Management

Relevant Teams

Procurement

Legal

Supply Chain

Compliance

Operations

Finance

Commercial

Risk Management

Vendor Management

Contract Administration

Project Management

Relevant Roles

Procurement Manager

Contract Manager

Legal Counsel

Supply Chain Director

Chief Procurement Officer

Compliance Officer

Commercial Director

Operations Manager

Finance Director

Project Manager

Tender Manager

Vendor Relations Manager

Risk Manager

Category Manager

Sourcing Specialist

Industries
Government Contract Act 1949: Primary legislation governing contracts made by the Government of Malaysia, establishing basic requirements for government procurement contracts
Contracts Act 1950: Fundamental law governing formation and enforcement of contracts in Malaysia, including essential elements like offer, acceptance, and consideration
Financial Procedure Act 1957: Regulates financial and accounting procedures in government procurement, including procurement processes and financial controls
Treasury Instructions and Treasury Circular Letters: Administrative guidelines and procedures for government procurement, including framework agreement requirements and procurement methods
Competition Act 2010: Ensures fair competition in commercial activities, including procurement processes and prevention of bid rigging
Malaysian Anti-Corruption Commission Act 2009: Addresses corruption prevention in procurement processes and establishes integrity requirements for government contracts
Treasury Circular Letter No. 5/2007: Specific guidelines on framework agreements in government procurement, including procedures for establishment and implementation
Government Procurement Policy & Guidelines: Comprehensive procurement policies including specific requirements for framework agreements and supplier selection
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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