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In the video "What is a Framework Part 1: The Basics," the concept of a framework agreement is explained. A framework agreement is a type of multi-supplier contract that establishes long-term relationships with suppliers for the delivery of goods or services over time. The benefits of using a framework include access to compliant agreements, reduced procurement time, and competitive pricing from suppliers who anticipate consistent business. This approach allows end users to spend funds efficiently without extensive due diligence, making it a valuable option for organizations looking to procure goods or services effectively.