What is a Framework Agreement?

  • A Framework Agreement is a legal instrument executed initially between PPI and suppliers who are owners of exclusive proprietary technology and/or their exclusive representative.
  • The terms and conditions of the Framework Agreement are pre-negotiated and apply to all future contracting by the end users via the Framework Agreement.
  • After the Agreement is signed, PEMEX and its subsidiaries become legal parties to it via a notice of accession and then issue orders to suppliers.
  • Framework Agreements are used by PEMEX and its subsidiaries to implement strategic sourcing.

Benefits that these agreements offer to PEMEX:

  • Provide an effective and efficient means for purchasing goods and services under an international procurement framework
  • Allow them to leverage their spend volume
  • Establish electronic delivery of purchase ordere
  • Secure standardized best terms and conditions that would apply throughout the enterprise
  • Drastically reduce paperwork and delivery times
  • Accomplish a one-time comprehensive negotiation of terms and conditions

Benefits to Suppliers and Service Providers:

  • Pre-negotiated and standardized terms and conditions
  • Better payment terms
  • Better delivery terms
  • Reduced transportation risks (or none in some cases)
  • Proof of delivery is obtained directly by PPI (depending on delivery term)
  • Flexibility to add new products
  • Multiyear blanket orders