News

OGC publishes new model contract for public sector ICT procurement

Released on 18/06/2008

The Office of Government Commerce (OGC) has announced a new version of the free Information Communication Technology (ICT) model contract and associated guidance. The new model contract aims to help achieve better outcomes for projects with complex ICT procurements, while at the same time saving time and money. It has been produced in conjunction with the delivery partner of the contract, Partnerships UK (PUK), and follows consultation with industry body Intellect, the legal profession and key government stakeholders.

The new version addresses a number of issues, including refinement of the financial distress provisions, and further guidance on supply chain rights and benchmarking. It also introduces a number of drafting improvements to revise and clarify clauses that have commonly caused undue delays to negotiations.

The model ICT contract is a key component of the OGC's new Policy and Standards Framework, and is also a core part of the Chief Information Officer Council's Supply Transformation Programme. The model ICT contract website has over 2300 registered users and the contract itself is widely supported by government, industry and the legal profession. As a result, it is now being adopted for use across the public sector, including several major programmes.

Nigel Smith, Chief Executive of the OGC commenting on the new model contract said, "Success of projects or programmes that require ICT support can depend on those services being contracted in the most appropriate and efficient way. The ICT model contract that we have developed with industry bodies and other stakeholders goes some way in providing those assurances.

"I would recommend that any public sector organisation acquiring such services should consider adopting the model contract if it is appropriate for their requirements. This will not only allow them to save time and money with not having to develop contracts from scratch, but it will also provide additional peace of mind with the knowledge that important factors have already been considered. Many organisations have already benefited from the model contract, and we look forward to providing additional developments and adaptations of the guidance in the future to cater for the evolution of the marketplace, products available and the specific requirements of the services."

Notes to Editors

The model contract is hosted on the Partnerships UK website.

Policy background

Published guidance since 2004

Today's announcement is on the publication of version 2.2 of the ICT Services Model Contract.

Version 1 of the Model Contract for output-based ICT service contracts was launched in 2004 incorporating a payment model and other provisions designed specifically to reflect the inherent features, and risks, of ICT procurement.

Since the publication of the contract and its associated guidance, it has been used widely across UK public sector ICT procurement and in response to requests from various users of the guidance, OGC commissioned work in 2005 to develop the drafting and guidance for the set of Schedules relating to the Model Terms & Conditions.  This new set of documents was launched as Version 2.0 in September 2006. 

A programme of ongoing improvement, taking account of both public and private sector experiences in applying the contract led to the publication of Version 2.1 in July 2007 and now to Version 2.2. 

About OGC

The Office of Government Commerce (OGC) leads government departments and the wider public sector to make improvements in buying goods and services. As an office of HM Treasury, the OGC works with central Government departments, and other public sector organisations, to ensure the achievement of five key goals:

• Delivery of value for money from third party spend;  
• Delivery of projects to time, quality and cost; realising benefits;   
• Getting the best from the Government's £30bn estate;  
• Driving forward the improvement of central Government capability in procurement, Project and Programme Management, and estates management through the development of people skills, processes and tools;  
• Assisting departments in the delivery of Government's policy goals on sustainability, innovation, equality and support for small and medium sized enterprises.

OGC is an expert in providing guidance and standards on procurement best practice, fostering productive partnerships and realising the benefits of collaborative solutions to meet the buying needs of the public sector.

It provides innovative ways to develop further central Government's capability in procurement, and leads the Government Procurement Service, which supports those operating as procurement professionals and those working towards gaining professional status within the civil service.

Media Contact:
Michael Dunning
T: 020 7271 1318
F: 020 7271 1345
E: press@ogc.gsi.gov.uk

Contact details:
OGC Service Desk
Tel: 0845 000 4999
E-mail: ServiceDesk@ogc.gsi.gov.uk