Express law No. 55

6 June 2007

Release of revised SourceIT model contracts

The Australian Government has released revised versions
of the SourceIT model contracts and guidance, for use
by Australian Government agencies conducting simple ICT


As part of the Australian Government's plan to make
ICT contracting with agencies simpler and easier, draft
model contracts and user notes were made available on a
new SourceIT website in May 2006, for comment by industry
and agencies.

These documents consisted of a suite of model contracts
for simple procurement which are consistent with Australian
Government regulations and guidelines, and user notes to
assist agencies and suppliers.

Model contracts were developed for the following types
of procurement:

  • simple hardware acquisition and support
  • simple licence and support of commercial-off-the-shelf
    (COTS) software
  • simple IT consultancy services.

Second versions

Following consultation with industry and agencies, second
versions of the SourceIT model contracts and user notes
were released on 28 May 2007. These revised versions are
now available on the SourceIT website.

The second versions of the SourceIT model contracts and
user notes contain a number of changes from the earlier
draft versions. These include the following.

COTS licence

The suite of model contracts now includes a contract for
a simple licence of COTS software without support.

Intellectual property

The IP ownership provisions in the model contracts have
been revised in line with the Statement
of IP Principles
policy for Australian Government
agencies released in May 2007 by the Attorney-General's

Liability and indemnity

The liability provisions have been revised in line with
Finance Circular 2006/03 Limited
Liability in Information and Communications Technology
and DCITA's A
Guide to limiting supplier liability in ICT contracts

Endorsed Supplier status

The clause generally requiring the contractor to have
Endorsed Supplier status has been deleted to reflect the
cessation of Endorsed Supplier Arrangements on 29 November

Frequently Asked Questions

It is recommended that agencies carefully review the Frequently
Asked Questions on the SourceIT website, as these discuss
a range of issues arising from the industry consultation
process that vendors may raise with agencies. The Frequently
Asked Questions provide information on how agencies could,
if necessary, deal with issues raised by vendors in a way
that would not breach policy. It should be noted, however,
that these vendor issues are fall-back positions which
are not reflected in SourceIT itself and agencies should
consider the implications of accommodating them.

SourceIT, like GITC, remains a non-mandatory contracting
framework which can be used at agencies' discretion
for suitable situations.

The revised model contracts and guidance are available

For further information please contact:

Kate Brophy
Senior Lawyer
T 02 9581 7678 F 02 9581 7445

Important: The material in Express law is
provided to clients as an early, interim view for general
information only, and further analysis on the matter
may be prepared by AGS. The material should not be
relied upon for the purpose of a particular matter.
Please contact AGS before any action or decision is
taken on the basis of any of the material in this message.