What is a Framework Agreement?

Framework Agreements make global trading a more efficient and agile process. These long term contracts are agreements for the purchase of goods and contracting of services.

Framework Agreements are negotiated between PPI and original equipment manufacturers, producers, licensed distributors, and certified service providers which allow PEMEX and its subsidiaries to effectively purchase/contract equipment, parts, information technology, consumables, repairs, maintenance, and other products/services, while strictly complying with PEMEX’s legal Framework and internal regulations.

  • A Framework Agreement is a legal instrument executed initially between PPI and suppliers who are owners or sole representatives of the owners of exclusive proprietary technology.
  • The terms and conditions of the Framework Agreement are pre-negotiated and apply to all future contracting by PEMEX, its State-Owned Productive Subsidiaries and affiliates via the Framework Agreement.
  • After the Framework Agreement is signed, PEMEX and its State-Owned Productive Subsidiaries become legal parties to it via a Notice of Accession and, therefore, entitled to issue purchase orders to suppliers through the Framework Agreement.
  • Framework Agreements are used by PEMEX and its State-Owned Productive Subsidiaries to implement strategic sourcing.

Benefits that these Framework Agreements offer to PEMEX:

  • Is an effective and efficient instrument for purchasing goods and services under an international procurement framework.
  • Purchasing volumes are consolidated taking advantage of economies of scale.
  • Orders are issued electronically.
  • 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.
  • Orders may be issued as multiyear blanket orders.
  • Orders are released faster.