ICT industry briefing Review of Procure IT v3.1 Customer Contract 16 February 2016

Role of Procure IT Contract Framework NSW Procurement Board Direction requires all agencies to use the Procure IT Framework for the acquisition of ICT related products and services Exemptions and exceptions – how they are treated The Procure IT Framework is made up of:  · Part 1 – Head Agreement (for Scheme participants)  · Part 2 – Customer Contract and general order form  · Part 3 – Dictionary  · Part 4 – Modules, including order forms 2

Current Procure IT modules Module 1 Hardware acquisition and installation Module 2 Hardware maintenance services Module 3 Licensed software without SAAS Module 4 Development services Module 5 Software support services Module 6 Contractor services Module 7 Professional services Module 8 Training services Module 9 Data migration Module 10 As a service Module 11 Telecommunications as a service Module 12 Managed services Module 13 Systems Integration 3

Evolution of Procure IT contracts Procure IT v3.0  February 2011 – October 2013  Updated version contract Procure IT v3.1  13 June current  aligned contract with legislative changes  updated to meet the small and medium enterprises policy framework  new clause 25.2 (c) inserted in Customer Contract  new clause 19.1 (c) inserted in Head Agreement Procure IT v3.2 Now under development 4

Summary of proposed changes 1.Definition of open source software to be more closely aligned to industry’s definition 2.Adopting a consistent definition of loss throughout the contract 3.Requiring contractors to supply an irrevocable and perpetual licence for any existing material incorporated into a deliverable 4.Clarifying the contractor’s entitlements when a customer terminates for convenience 5.Limiting the contractor’s liability for loss of data to the last contemporaneous backup 6.Amend the system warranty but retain within module 13 7.Greater scope for agencies to change standard contract clauses for as-a-service, low value and some complex high-value contracts 5

Next steps Industry consultation  First released at industry briefing on 19 February 2016  Our suppliers to be invited  Feedback through the ProcurePoint website Draft contract  From August 2016  Earliest adoption from late 2016 More changes in 2016/17  Short form contract  Module 10 As a service  Module 13 Systems integration 6