Suppliers may be pleased to see that elements of the OGC's model IT contract and the accompanying guidance, hosted by Partnerships UK, have been revised to take account of lobbying from the IT trade organisation Intellect (among others). Draft revisions are available here (though to access this document you'll need to register with Partnerships UK if you've not done so before). Input on the proposals is requested before 20 June before the amended version is finalised.
The OGC contract has become the standard for significant public sector IT procurements, though there is no hard-and-fast rule about the size or scope of deal it should be used for. At last year's SCL conference one speaker reckoned it was best used only in procurements over £5m, though I've certainly seen it used in rather smaller contracts, albeit in a simplified format. Undoubtedly, it forms a useful reference work for public sector IT projects of any size.
There are some changes in the proposed revisions to the guidance that will certainly strike a chord with suppliers' legal and commercial teams. Lawyers acting for buyers will I am sure be familiar with negotiations with suppliers on a number of the issues that have been addressed (eg what happens if the supplier does not have the opportunity to carry out due diligence, how much control should a buyer have over the supplier's existing sub-contractors, what are the risks of exercising a right to step-in?). On the other hand, suppliers may be disappointed to note that no revisions are proposed to the extensive audit provisions because "the rights as stated in the Model Agreement are essential if Government is to ensure full accountability for public services and spending".
A further revision addressing the controversial "financial distress" provisions is expected later in the year.
The government have announced this month that they are making more low value contract opportunities available for free
Posted by: | October 02, 2009 at 06:08 AM