What is a Framework purchase Order?

A Framework Purchase Order (FPO) is a type of procurement agreement that establishes the terms and conditions for a series of future transactions between a buyer and a supplier. It typically sets out pricing, delivery schedules, and other essential details without committing to a specific quantity or delivery date at the outset. This arrangement allows for flexibility and efficiency in purchasing, enabling the buyer to place orders as needed under the agreed framework. Framework purchase orders are commonly used in industries where ongoing supplies or services are required.