SourceIT Model Contracts & SourceIT Plus

The model contracts provide templates for Commonwealth entities to develop sound commercial agreements efficiently and effectively. It is expected that this will encourage good business practice and minimise the risk of conflict and disagreements between Commonwealth entities and suppliers.

The detailed legal terms suggested in the model contracts have been developed with significant feedback from Commonwealth entities and industry. The contracts are flexible enough to allow inclusion of project-specific details.

While the model contracts do not necessarily remove the need for professional legal advice altogether, it will make the preliminary stages of agreeing terms more efficient.

The original suite of SourceIT model contracts are designed to cater for simple procurement of;

  • Hardware Acquisition and Maintenance;
  • Licence and Support - Commercial off-the-shelf Software;
  • Licence (not covering support) - Commercial off-the-shelf Software; and
  • ICT Consultancy Services.

SourceIT Plus caters for semi-complex procurement of IT services (and the provision of related products) such as consultancy services, system integration, software development and managed services.

 

Simple procurement

Simple procurement is conducted in an environment where routines, methods and procedures are well established. It usually involves the purchase of standard services or "commercial-off-the-shelf" (COTS) items where:

  • The level of risk is minimal;
  • Standard terms and conditions are used with minimal or no alteration;
  • The goods and/or services do not require any development to be undertaken prior to acceptance;
  • Value for money considerations are restricted to price, quality, fitness for purpose and compliance with required timeframes and delivery needs;
  • Payment of the contract price will generally only be made following delivery and acceptance of the supplies and/or services; and
  • Specialist advice on legal, contractual, technical or financial considerations is not likely to be required.

Use of the original model contracts is strongly encouraged to support establishment of an appropriate agreement between agencies and suppliers for the provision of ICT goods and services.

Semi-complex procurement; more than simple procurement

The more complex a procurement becomes, the more preparation needs to be carried out, including contracting considerations. It is likely that your agency has conducted a procurement in the past that is beyond that of simple procurement. Using your agency's previous procurement contracts as a starting point can be very useful, likely being tailored to your agency's requirements and providing benefit in building on lessons learnt.

The SourceIT Plus model contract can be used to cater for moderately complex ICT procurement.

SourceIT Plus was developed from the now retired Commonwealth Government Information Technology and Communications (GITC) contractual framework.

It is important that before using SourceIT Plus, you seek specialist advice to ensure that the scope and risks of each procurement exercise are managed effectively.

SourceIT and SourceIT Plus are not designed to cater for complex procurements such as departmental-wide outsourcing of your entity's IT System. For procurements of that magnitude, it is recommended you seek bespoke legal advice.

Downloadable Model Contracts

Version 2.6 of the SourceIT and SourceIT Plus Model Contracts reflects the introduction of the Indigenous Procurement Policy (IPP) which commenced on 1 July 2015.

For more information and guidance regarding the Indigenous Procurement Policy, refer to the Department of the Prime Minister and Cabinet website.

Procurement Type/Release Date/Version

User Notes

The User Notes provide clearly written explanatory material, to assist non-expert staff to understand the model contracts, and identify situations where the contracts may not be applicable without some change.

They contain an explanation of the purpose for each contract template, the clauses for each of the model contracts, hints for their use and a description of the risks and issues with each clause.

The User Notes are divided into the following three components:

  • Four sections (one for each Contract template) explaining the clauses specific to each Contract template;
  • A section providing guidance on the 'general requirements' common to all Contract templates; and
  • Three sections, one for each Contract template, except for the SourceIT Licence (only) Contract for Commercial off-the-shelf Software. Each section provides guidance on the Schedules contained in the relevant Contract template.

Note: Left click to view, or to save, right click on the document you wish to download and select 'Save Target As' then select a location to save the documents to and click OK.

Downloadable User Notes for the basic SourceIT suite of Model Contracts

 Procurement Category
Subject matterHardwareSoftware (licence and support)IT ConsultancySoftware (licence only)
Specific Clauses [PDF 956 KB] [PDF 1 MB] [PDF 886 KB] [PDF 1 MB]
General Requirements [PDF 921 KB] N/A*
Schedules [PDF 644 KB] [PDF 866 KB] [PDF 641 KB] N/A*

* Covered by the user notes for specific clauses of the software licence (only) contract.

Downloadable User Notes for SourceIT Plus [PDF 1.22 MB]

If you have any feedback on the user notes, please contact the SourceIT Helpline. Your comments will be considered for inclusion in the next release of the suite of contracts.

Frequently Asked Questions about SourceIT

Further guidance to answer many questions including what is meant by simple procurement, what is meant by a consultancy service, how does Section 23(3) apply, and intellectual property rights.

Please go through to our SourceIT FAQ page for more information.

Useful Links 

For useful references about SourceIT and procurement more generally, please see our SourceIT Useful Links page.

Contact Information - ICT Procurement Hotline

Contact for information on this page: ICT Procurement

Finance provides general advice regarding the use of SourceIT model contracts, and clarification of information on this web site.

Finance does not offer specific procurement or legal advice to agencies. Agencies should contact their own internal advisory units for specific enquiries.

Helpline - phone, fax and email

Telephone: (02) 6215 1597
Facsimile: (02) 6215 1698
Email: ICT Procurement

Mailing Address

ICT Hardware, Software and Services Team
ICT Procurement Branch
Department of Finance
John Gorton Building
King Edward Terrace
PARKES ACT 2600 AUSTRALIA


Model Contract Archives

This section allows you to download ICT contract documents that have been superseded.

Please note that this documentation is available for reference only and should not be used to interpret a contract that may already be in place between a customer and its contractor.

A contract template will cease to be authoritative if any of the Agreed Terms are modified. Finance strongly advises against modifying or using a modified version of the Contract template without having consulted your legal or procurement adviser. Users should download the templates from the website each time a contract is required, to ensure that the authoritative version is used.

Version 1.0 released May 2006

Version 2.0 released May 2007

Version 2.1 released October 2009

Version 2.2 released March 2010

Version 2.2 of the SourceIT Model Contracts includes a Fair Work Principles Policy. For more information refer to the Department of Education, Employment and Workplace Relations website.

Version 2.3 released October 2012

Version 2.3 of the SourceIT Model Contracts includes:

  • a clause to address the Work Health and Safety Act 2011 (WHS Act);
  • a clause to address the Australian Government ICT Sustainability Plan;
  • a clause in the event that a trustee contractor is used;
  • significant amendments to security requirements; and
  • an update to the payment of simple interest for SMEs.

For more information and guidance regarding the WHS Act, refer to the Comcare website

Procurement Type/Release Date/Version

Version 2.4 released November 2013

Version 2.4 of the SourceIT Model Contracts includes:

  • an updated clause to reflect the new Gender Workplace Equality Act 2012 (Cth) that replaces the Equal Opportunity for Women in the Workplace Act 1999 (Cth)

For more information and guidance regarding the Gender Workplace Equality Act 2012, refer to the Workplace Gender Equality Agency website

Procurement Type/Release Date/Version

Version 2.5 released November 2014

Version 2.5 of the basic SourceIT Model Contracts r includes:

  • changes to reflect the introduction of the Public Governance, Perform0.00.0.ance and Accountability Act 2013 (Cth) (PGPA Act), replacing the Financial Management and Accountability Act 1997 (FMA Act)
  • the removal of reference to the Fair Work Principles under the Fair Work Act 2009 (Cth)
  • amendments to the Privacy Principles under the Privacy Act 1988
  • updates to linked web pages and references

For more information and guidance regarding the PGPA Act, refer to the Department of Finance website.

For more information and guidance regarding the Fair Work Act 2009, refer to the Fair Work Ombudsman website.

For more information and guidance regarding the Privacy Act 1988, refer to the Office of the Australian Information Commissioner website

Procurement Type/Release Date/Version

Last updated: 14 January 2016