A framework contract is a long-term sales contract with a seller that contains conditions for the material to be delivered by the seller. Step 2 – Indicate the number of the delivery plan. Supplier selection is an important process in the procurement cycle. Suppliers can be selected through the offer process. After pre-selecting a supplier, an organization enters into an agreement with that particular supplier to deliver certain items under certain conditions. When an agreement is concluded, a formal contract is usually signed with the supplier. A framework contract is therefore a long-term sales contract with a supplier. − A contract is a long-term framework contract between a supplier and a customer for a predefined material or service over a specified period of time. .