OGC Model ICT agreement: Version 2.2 - evolution not revolution

Version 2.2 of the Office of Government Commerce (OGC) model information and communications technology (ICT) services agreement and guidance was published on 30 May 2008.

Version 2.2 can be found on Partnerships UK's website. It was produced following a significant period of consultation between Partnerships UK and the UK information and communication technology sector. Commenting on the release of Version 2.2, Partnerships UK stated:

"Version 2.2 introduces a number of changes and improvements. As well as addressing various commercial issues which have arisen during consultation, we have also sought to improve the contract by revising clauses which commonly cause undue delays to negotiations."

Although the changes in version 2.2 do not address all of the IT industry's key concerns regarding areas such as clawback, due diligence, supply chain rights and financial distress, Version 2.2 is an evolutionary step in the right direction. Mike Grundy, Chair of Intellect's Contracting Working Group, said:

"Whilst version 2.2 certainly represents a further step forward, Intellect acknowledges that there remain aspects of the model contract which cause concern for the industry. We will continue to work with OGC and Partnership UK to address these aspects and to continually enhance the contract through future versions."

OGC has already indicated during consultation, in which Wragge & Co has taken part, that version 2.3 of the model contract is likely to be published towards the end of 2008. It is expected that this will demonstrate evolution in other areas, including financial distress and change control.

The new guidance notes in the model ICT contract and the accompanying Key Commercial Principles should help to raise awareness of some of the IT industry's key concerns. As Partnerships UK suggests above, we anticipate that this will ease contract negotiations by clarifying for local authorities when it would be appropriate to depart from the model ICT contract wording e.g. such as where authority due diligence information is inaccurate or incomplete.

For those working in public sector ICT, whether as a customer or as a supplier, it will be important to understand the key changes to the model ICT agreement. Wragge & Co's experts in public sector IT have put together an analysis of what the key amendments in version 2.2 will mean for customers and suppliers.