Framework agreements are among the most popular strategic tools in public procurement. They offer a way to aggregate demand, secure value-for-money pricing, and simplify compliance. Yet beneath the headline advantages lies a quieter problem, the underutilised or “ghost” framework.
What Is a Ghost Framework?
A ghost framework is a procurement agreement that exists legally and formally but remains practically unused. It’s set up, suppliers are appointed, but no meaningful call-offs are ever made. Sometimes it sits idle due to changing internal needs; sometimes it simply falls off the radar.
Interviews and case reviews by the UK’s National Audit Office and internal procurement audits conducted within local councils in Ireland indicate that up to 30% of some frameworks experience minimal or even zero usage during their lifespan. This points to a systemic issue that remains largely unaddressed in procurement literature.
The Cost of Inactivity
Establishing a framework is not free. Legal consultations, tender evaluation, panel reviews, and stakeholder alignment all require significant resources. When the framework is underused or forgotten, these become sunk costs. Suppliers, too, face consequences. Many invest time, money, and personnel in winning a place on a framework, only to see no return on investment.
In an era of tight public sector budgets, this misallocation of resources is more than a technical issue, it is a strategic failure.
Root Causes: Misalignment and Assumptions
Ghost frameworks often result from poor internal engagement. Procurement teams build agreements without securing buy-in from the business units who are supposed to use them. In many public bodies, procurement is seen as a compliance function, not a strategic partner, resulting in frameworks that miss the mark.
In other cases, procurement teams overestimate future demand or duplicate existing routes to the market. A health authority, for instance, may create a framework for office supplies unaware that a national contract already exists.
Implications for Suppliers
From the supplier’s perspective, ghost frameworks are demoralising. SMEs in particular depend on the credibility and cash flow associated with public contracts. When frameworks go unused, these smaller players lose trust in the system. It also creates barriers to entry, as firms become more selective about what they bid for.
Solutions and Best Practice
Authorities like the UK’s Crown Commercial Service and Ireland’s Office of Government Procurement are increasingly focused on post-award governance. Best practices include:
- Usage tracking dashboards
- Sunset clauses for dormant frameworks
- Mandatory internal stakeholder consultation pre-framework design
- Transparent call-off reporting mechanisms
Frameworks are not inherently flawed. But without active management, they risk becoming bureaucratic ghosts, haunting spreadsheets but delivering little real-world value.
Sources:
Office of Government Procurement (Ireland) – Public Procurement Guidelines for Goods and Services
