Framework agreement type of procurement has become very important in developed asrnwell as developing countries. Few researches have been conducted to review factorsrnaffecting framework agreement procurement efficiency in public procurement andrnproperty disposal service of Ethiopia. Therefore, this research aims to examine factorsrnaffecting framework agreement procurement efficiency: the case of public procurementrnand property disposal service of Ethiopia. The researcher identified three factors thatrnaffect framework agreement procurement efficiency. These includes: criteria for supplierrnselection, Terms and conditions of framework agreement, and external factors. Thernhypothesis of the study was factors of framework agreement (independent variables) andrntheir impact on framework agreement efficiency (dependent variable) of PPPDS. Thernresearch design used was based on both descriptive and explanatory researchrnapproaches. The researcher distributed 86 questionnaires and 81were filled andrnreturned. Both primary and secondary data were used throughout this research. Forrnprimary data, both structured and semi structured type questionnaires were prepared.rnThe results of this study indicate that the independent variables (criteria for supplierrnselection, Terms and conditions of framework agreement) positively affect the dependentrnvariable (framework agreement efficiency) but challenges in FA implementationrnnegatively affect FA efficiency to a significant extent. These factors contribute 74.7% ofrnFA efficiency, while the rest 25.3% is explained by other factors, which are not subject ofrnthis study. Therefore, with this study finding, PPPDS is advised to emphasize more onrnchallenges that hinder FA efficiency and should be able to create efficient and responsivernprocurement system. It is critical to know the common items that need to be included in tornthe FA and particularly consider price fluctuations while going through the tenderrnprocess to attract suppliers for FA.rnKey words: