The Cabinet Office has issued Procurement Policy Action Note 04/14 to announce that a revised set of terms and conditions (the “Model Services Contract”) has been developed for major services contracts to replace the old OGC Model ICT contract.

The Model Services Contract must be used in future procurements run by Central Government departments (including their Executive Agencies and Non-Departmental Public Bodies) for IT delivery services and Business Process Outsourcing (BPO) contracts with a value of over £10m.  PPN 04/14 indentifies 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” i.e. a competitive dialogue or negotiated procedure procurement.

It is intended that the use of the Model Services Contract will “aid delivery assurance and reduce administration, legal costs and negotiation time”.  Eversheds will shortly be issuing a client briefing on the Model Services Contract while guidance notes are due to be issued by the Cabinet Office during Summer 2014.

The Model Services Contract is accessible on the Crown Commercial Services website: