Press Releases

New guidance helps government departments improve their strategic approach to IT contracting

Ref: 27/03

The Office of Government Commerce (OGC) has issued new guidance to help government departments decide which approach to use to deliver IT projects successfully.

Following the announcement in July that the Government's approach to IT procurement would be based on a presumption against PFI, OGC has produced guidance to help departments decide on the best strategy for procurement of IT. 

The new publication, a Decision Map for Procurement and accompanying Guidance for IT Contracting, is the product of a consultation programme with departments and the IT industry, and is in line with HM Treasury proposals to set out new approaches to IT projects.  

Suppliers are likely to benefit from the new consistency of approach the guidance proposes.  Model contract clauses are also being developed and, subject to consultation, will be adopted by Government.  More will follow in the coming months.

Speaking about the new guidance, OGC chief executive Peter Gershon said:

"We expect this guidance to help government departments improve their strategic approach to procurement.  Used appropriately, it will increase their chances of success in IT projects."

The overall step-by-step guidance takes those responsible for projects through the stages from identifying the desired outcome of the project to establishing whether to use a number of smaller contracts or one large one to deliver the outcome.

The first version of the guidance, published today, covers a new approach for procurement.  OGC will therefore consult on it over the next six months, with the aim of producing a second, revised version after 31 May 2004 which will take account of the views received.

Notes to editors

The guidance starts by encouraging those responsible for projects to consider how the desired outcome of the project will contribute to the goal of the organisation, and whether it is appropriate to contract for an outcome, output or input. It also gives consideration to essential issues such as skills, capabilities, the allocation of risk to the party best placed to manage it, and making full use of an analysis of what the market is able to provide.

We are publishing the first version of the guidance now and from January we will initiate a full consultation with both the public and private sector, ending on 31 May.  We will then issue a revised version. This will take full account of users' experiences in implementing the guidance, and other comments.  The January  consultation will start with us putting to both the public and private sectors a list of questions and a request for more general comments.  These will also be posted on the above website.

We are also working on draft precedent legal clauses (the draft change control schedule annexed at the end of the guidance is the first of these) and wish to consult on these.  We will post them on the website over the next two to three months. However they cannot yet be regarded as part of an OGC standard.   We intend to set up meetings between our legal advisers and industry legal advisers to consider the clauses further.  These meetings will take place in the period March to May next year. 

In addition to the formal consultation from January, we have set up an arrangement with the OGC service desk to ensure that all comments are recorded and taken into account, and any requests for meetings are properly dealt with.  We are encouraging readers to send in their comments to service.desk@ogc.gsi.gov.uk with the title "decision map for procurement" even if they already have had contact with individuals in the Contract Innovation or Consultancy teams.  To help us analyse their comments we have asked readers to add to the title the part numbers (1 to 7 and/or legal annex) they are commenting on.  We have also asked them to state which organisation they are from. 

Those with queries about the guidance  can call us on 0845 000 4999. They can also contact us on this number if they want to be included in the series of meetings and seminars we are organising to collect further comment.

The guidance follows proposals contained in HM Treasury's publication PFI: Meeting the Investment Challenge, published last July, to develop new approaches to IT projects.

The Office of Government Commerce (OGC) is an office of HM Treasury, which works with central civil Government as a catalyst to achieve value for money in commercial activities.  OGC aims to provide guidance and expertise to support successful delivery of procurement-based projects and other commercial activities; develop the Government market to make it more efficient and attractive to suppliers and customers; and develop a clear and supportive framework for best-in-class procurement activity, while making a leading contribution to Government modernisation.

Press enquiries to Paula Harrington at the Office of Government Commerce