New Model Services Contract — New Model Contract precedent for government ICT and business process outsourcing contracts

By Nichola Watts

The Crown Commercial Service and the Government Legal Service have developed what they term ‘a substantially revised set of model terms and conditions for major services contracts for use by government departments and many other public sector organisations’ (the Model Services Contract).

The Model Services Contract is intended to reflect current government priorities and recommended ways of doing business. It has been crafted for used with a range of government-procured business services, in particular business process outsourcing and IT services.

The Cabinet Office has stated that the Model Services Contract replaces the OGC Model ICT Contract (version 2.3) and has been designed for use for service contracts with a value of more than £10m. The Cabinet Office has also indicated that the Model Services Contract is designed to be a template for services where the procurement ‘will typically require some form of formal dialogue with potential suppliers’ — in other words, a competitive dialogue or negotiated procedure procurement (and not a procurement under the open or restricted procedure). It is highly likely, however, that it will be used as a base template from which to create a bespoke contract to work under any procurement regime. This is, in essence, no different to the approach previously taken with the OGC Model Contract…

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