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OGC Model ICT Contract replaced by New Model Services Contract
Trowers Public Insight

OGC Model ICT Contract replaced by New Model Services Contract

The new Model Services Contract, which replaces version 2.3 of the OGC Model ICT Contract, should be used with immediate effect as the basis of the draft contract for all procurements for IT delivery services and Business Process Outsourcing services with a value of £10 million or more.

All Central Government as well as Executive Agencies and Non Departmental Public Bodies (In-Scope Organisations) must adopt this model.

The new model services contract can be viewed on the Crown Commercial Service website.

The contract should be adopted for contracts with a value over £10m over the whole of the intended contract term.

The new contract was developed by the Crown Commercial service (CCS).  The Cabinet Office procurement policy note 04/14 states that the contract “reflects current Government priorities and recommended ways of doing business” and “aims to aid delivery assurance and reduce administration, legal costs and negotiation time”.

The model is suitable for use with the range of business services that Government purchases, with provision in particular for IT and BPO services.  The model anticipates some form of formal dialogue with potential suppliers.

Ahead of the publication of guidance notes on the new model (expected to be available during the summer of 2014) we have looked at the new model and can advise In-Scope Organisations on any specific procurements where it will be adopted.

Despite the improvements to the contract, the 'devil' is in the detail and in our experience this contract, whilst providing a helpful and improved starting point for discussions between consumer and supplier, will always require due consideration of the pertinent commercial and operational 'drivers' of the particular procurement.

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