New OGC Model Services Agreement and Guidance

August 4, 2009

Version 2.3 of the OGC Model Services Agreement and Guidance is now available on the Partnerships UK Web site.   Significant updates to two of the contract schedules are of special interest. 

Schedule 7.4 (Financial Distress) has been revised to reflect the recommendations of the multi-stakeholder Advisory Panel which was set up by OGC in 2008 to review the fitness for purpose of the financial distress provisions.  The key changes include:
• an increase in the contract value threshold for applying the full provisions from £50M to £150M
• the introduction of a short form of the Schedule which contains only the provisions from Risk Level 1 of the full Schedule and which is expected to be used on all projects
• credit ratings given primacy over other “triggers”
• a new obligation on key subcontractors to report and plan to mitigate the effects of Financial Distress events.
Schedule 2.5 (now named the Security Management Plan) has also been revised to take account of user feedback received since the security related provisions were mandated by Cabinet Office in 2008.  Changes include refocusing the provisions towards the maintenance of an Information Security Management System.

A number of other revisions have been made which aim to help improve the contract structure and balance and to provide guidance and links to relevant government initiatives including the Digital Continuity programme, the Carbon Reduction Commitment, the Cabinet Office’s Open Source Software Government Action Plan and OGC/NAO Good Practice Contract Management Framework.

To access the new version, click here (registration required).