IT procurement enhanced by Australian government

Simplifying the procurement of information technology is the aim of the Australian government with the recent launch of version two of the SourceIT model contracts and user notes, a year after releasing the first version.

Special Minister of State, Gary Nairn, said version two represents the government responding to feedback from industry and agencies.

“These revised contracts include our response to concerns over capping of supplier liability and also provide for more commercially flexible terms regarding intellectual property developed during the delivery of a government contract,” Nairn said.

“These changes improve the SourceIT model contracts and user notes by aligning them with the government’s aim of minimizing administrative and legal costs associated with IT procurement, while ensuring compliance with relevant legislation and guidelines.”

Nairn believes the model contracts will help to reduce the complexity, and possibly the cost, associated with doing business with government, opening the way for a broader range of companies to bid for government work.

“These are important steps towards revamping government ICT (Information and Communication Technology) procurement practices, and addressing some of the issues raised in the National ICT Industry Alliance “Strategic Vision of Australia’s Future Prosperity” released just last week,” he said.

A change management process will be implemented to ensure that the model contracts and user notes continue to remain usable and reflect user feedback, Commonwealth government procurement policy, and best practice ICT contracting methodologies.

“It is intended that the SourceIT model contracts and user notes will continue to evolve in response to policy shifts and practical feedback from both agencies and industry,” Nairn said. “Accordingly, there will be opportunities for further refinement of the documents over time.”

The new model contracts and user notes can be accessed via the SourceIT Web site at along with a range of support and information for agencies and suppliers on the use of the model contracts.

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