14 December 2005
Key Points:
Both vendors and purchasers of Government ICT products and services in Queensland need to prepare for contracting under the new GITC version 5.
Government ICT contracting in Queensland has taken a long-awaited step forward this year with the release of the new Queensland Government Information Technology Contracting Framework, known as GITC version 5.
What is the GITC?
The GITC is a standard form contract for use by Government when obtaining ICT products and services. Originally designed as a national template, it has now split into a number of different versions used in different jurisdictions.
In Queensland, use of the GITC in ICT projects has a broad footprint. It is mandated for Government departments and it may also be used by other Government agencies such as Government Owned Corporations (GOCs).
Why is a new version needed?
The previous version of the Queensland GITC (version 2) was introduced in 1994, so the contract is nearly 10 years old. The ICT industry has changed dramatically in that period, with significant advances including the internet revolution, the rise and fall of the dot coms, the return to vogue of outsourcing and the opening up of the telecommunications industry in Australia. There have also been many changes in the law over the last 10 years that affect ICT deals, such as copyright, privacy, tax and electronic transactions.
This has lead to GITC version 2 becoming outdated and unsuitable for modern and more sophisticated projects. In addition, version 2 has been criticised for being complex and difficult to use. In response to these concerns, Queensland has released version 5.
Key features of version 5
Version 5 introduces a number of new modules for specific transactions. There are three separate modules for obtaining ICT services, covering contractors engaged under either a recruitment provider or direct engagement model, as well as consulting services. There is also a new module for internet services, which covers hosting, internet access, domain names and filtering services.
Some key changes have been made to individual provisions. For example, the default position on liability is now to exclude liability for consequential loss. This is a significant concession by the State, and will make the GITC more attractive to industry.
The State has also attempted to make it easier for the position on intellectual property rights to be negotiated by providing four basic models for ownership, so that the parties can select the appropriate model for each contract.
Version 5 also provides for more information on contracts to flow back to the contract authority. This will enable the State to better understand how the GITC is being used in practice, how suppliers are performing and whether Government policy is being followed.
Transition process
The State has implemented a 12 month transition period from March 2005 to February 2006 to move the 1,700 suppliers who are currently on the version 2 panel to the new version 5.
State of the GITC nation
The release of version 5 highlights the diversity of requirement for suppliers which contract with government across Australia for supply of ICT products and services. Originally conceived as a single national model, there are now six different versions of GITC in use across the nation. This means additional cost and complexity for suppliers who supply Australia-wide, or even just to more than one State, as they have to be up to speed with each jurisdiction's version of GITC.
There have been some working group discussions to consider whether a nationally consistent framework for the GITC could be implemented, but given the difficulty in getting all of the States, Territories and the Commonwealth to reach agreement, this seems unlikely to happen in the foreseeable future.
Meanwhile, for Smart State customers in Queensland, version 5 is a timely modernisation of the GITC, which will provide them with procurement tools for their evolving ICT projects.
What you need to do
Anyone involved in Queensland ICT procurement activities, including procurement and legal officers, will need to understand the new documentation and prepare for contracting under version 5. This will involve developing your documentation, adopting a transition plan and training personnel.
For further information, please contact Simon Newcomb.
