Faroe Islands saves millions through framework agreements

The Faroese government has saved millions by using framework agreements for purchasing goods and services, according to a report by public broadcaster Kringvarp Føroya.

The national procurement office, Gjaldstovan, handled 19 tenders last year, with nine resulting in framework agreements covering items such as paper, soap, and insurance. A total of 64 bids were submitted by 15 suppliers.

In 2024, the government spent approximately five million Danish kroner on goods now covered by these agreements. Had the new framework agreements been in place, savings would have reached nearly three million kroner—equivalent to 53 percent of the total cost.

The reported savings range from 20 percent to 58 percent, depending on the product category. The government uses the Keypsportalin procurement portal to obtain offers for goods and services.