This PPN outlines three standard contracts that may be used by central government departments, their executive agencies and non-departmental public bodies (collectively referred to as ‘in-scope organisations’) when awarding public contracts for goods and or services and or works, other than special regime contracts. These contracts are also available for use by any other public sector organisation as part of their commercial activity.
The three Standard Contracts in the suite are:
The Model Services Contract (“MSC”)
This is designed as a template for complex services/services procurements which will typically require some form of formal dialogue or negotiation with potential suppliers, for example clarifying the scope of existing arrangements or desired service outcomes, or ensuring that there is an appropriate balance of risk and reward. It is particularly suitable for Business Process Outsourcing (BPO) and/or ICT delivery services. Use of the MSC is encouraged where the likely contract value (over the whole of the intended contract term) is £20m or more, or where a contract is rated ‘Gold’ using the Cabinet Office Contract Tiering Tool. The MSC is available on Gov.uk: https://www.gov.uk/government/collections/model-services-contract
The Mid-Tier Contract
This is designed as a template for goods and/or services procurements which are not particularly complex and do not require formal dialogue or negotiation with potential suppliers. The Mid-Tier Contract may be used where the likely contract value (over the whole of the intended contract term) is above the relevant procurement thresholds, but falls below approximately £20m. It may also be used if a contract is more complex or critical, but below the relevant procurement thresholds. The Mid-Tier Contract is available on Gov.uk: https://www.gov.uk/government/collections/the-mid-tier-contract
The Short Form Contract
This is designed as a template for low value, non-complex goods and/or services procurements. The Short Form Contract should be used when the likely contract value (over the whole of the intended contract term) is below the relevant procurement thresholds, unless the contract is more complex or critical, in which case, another contract, such as the Mid-Tier Contract may be used. However, in-scope organisations may use the Short Form Contract for non-complex above-threshold procurements where it is proportionate and appropriate to do so, within limits (e.g., Cabinet Office Contract Tiering Tool tiering level (Gold/Silver/Bronze) limits; value (£) limits; use by exception only limits) put in place by that in-scope organisation. In-scope organisations should also consider the risks of the particular procurement (e.g., data protection, security, intellectual property rights, SME access) as well as
proportionality and value.
If used for an above-threshold procurement, the Short Form Contract will be missing several clauses as compared to the Mid-Tier Contract, and is likely to need to be amended to work for the procurement (e.g., by introducing additional clauses from the Mid-Tier Contract to cover missing but required clauses). The Short Form Contract Guidance note is available on Gov.uk and sets out the missing clauses:
https://www.gov.uk/government/publications/guidance-on-the-short-form-contract
The Short Form Contract is available on Gov.uk:
https://www.gov.uk/government/publications/short-form-terms-and-conditions
In2 the bargain 