New Model Services Contract Published By The Crown Commercial Service

A new model services contract has recently been published by the Crown Commercial Service (CCS), part of the Cabinet Office. The CCS adopted the responsibilities of the Government Procurement Service (GPS) last year and aims to establish a new commercial service for Government, acting on the Crown's behalf, resulting in additional tax & procurement savings and improved quality of commercial activity throughout the public sector. The CCS aims to provide greater commercial capability and customer service.

The new model terms and conditions replace the "widely used but out-of-date" OGC Model ICT Contract version 2.3 and are intended for use by government departments and other public sector organisations, in major services contracts with a value above £10 million. The contract is intended to reflect Government priorities and recommended business practices. Additionally, it is hoped that the contract will provide assurance with delivery, reduce negotiation and lessen legal and administrative costs.

Whilst the CCS have advised that the model contract is suitable for use across the range of services which the Government purchases, they point out that the model includes specific provisions applicable to contracts for business process outsourcing and/or IT delivery services.

The publication of the new model contract comes amongst a significant period of change which is expected to continue well into this year; Sally Collier, managing director of the CCS, has stated that she...