Direct link: https://www.buyict.gov.au/sp?id=resources_and_policies&kb=KB0010638
Responsible agency: Digital Transformation Agency
Last updated: February 2020
This policy provides agencies with a modern approach to structuring contracts that reduces risk, drives competitive outcomes and increases flexibility. This helps improve sourcing outcomes through responsible monitoring of contract performance, greater access to a diverse range of sellers and the flexibility to invest in emerging solutions.
It has 3 principles:
- Risk: de-risk large digital (including ICT) programs by breaking them down into manageable contracts (work orders).
- Competition: increase market access for business of all sizes by creating smaller, more focused packages of work.
- Flexibility: enable changes to strategic direction and allow earlier access to emerging technologies through regular reviews of performance and deliverables.
Applicability
Effective 1 February 2020 all Non-corporate Commonwealth entities (NCEs) (as defined by the Public Governance, Performance and Accountability Act 2013) must apply this policy.
This policy replaces the ICT Contract Capped Term and Value Policy, which was in effect from 23 August 2017.
Corporate Commonwealth entities are encouraged to apply this policy.
Exemption mechanisms
There are two mechanisms for exemption detailed in the policy:
- an Automatic Exemption, which in some cases requires notifying the DTA
- a Joint-Ministerial Exemption which requires a request which should be made at least 8 weeks prior to going out to market.
Access the policy
The BuyICT.gov.au website hosts the Digital Sourcing Contract Limits and Reviews Policy (full text).
For further information on the policy, guidance, and exemption process, please email digitalpolicy@dta.gov.au
Answers to frequent questions, and helpful advice on structuring contracts under the policy, is available in the Digital Sourcing Contract Limits and Reviews Policy guidance.
Policy Requirements
To comply with the policy, the following requirements apply on digital contracts and work orders:
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They must not exceed $100 million (ex GST whole-of-life cost), including all extensions.
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They must not exceed 3 years initial term.
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Each individual extension option must not exceed 3 years.
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Extension options can only be exercised after a review of the contractor’s performance and deliverables.