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DTA moves to end ‘set and forget’ in IT contracts

DTA moves to end ‘set and forget’ in IT contracts

Buyers must review performance and deliverables before extending deals

Credit: Dreamstime

The Digital Transformation Agency (DTA) is attempting to wrest itself from old and defunct technology in new changes to its contracting rules.

The agency has introduced new rules to its ICT Contract Capped Term and Value Policy that will compel buyers to review “performance and deliverables” of their IT providers’ solutions before extending contracts.

“We are making sure there is no default ‘set and forget’ in our digital sourcing contracts so we aren’t left with old technology or solutions that aren’t working,” the DTA said in a blog post.

Now known as the  Digital Sourcing Contract Limits and Reviews Policy, the new rules will allow contracts to be extended for any length up to three years. 

Previously, channel suppliers could only renew contracts for the length of the initial deal, which partners complained was preventing them from allowing trials and proofs-of-concepts

The DTA admitted that it had “heard the previous policy could stifle innovation” during a consultation with government buyers and partners.

Meanwhile, the DTA will continue its policy of capping contracts at $100 million, a move first introduced in 2017 to encourage more uptake from small-to-medium sized businesses. 

In addition, the initial term cannot be longer than three years. The new policy will be enforced from February 1.


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Tags IT contractDTAinnovation

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