QITC IT contracts framework an introduction

In August 2017, the Queensland Government introduced the Queensland Information Technology Contracting (QITC).  The QITC framework replaces the Government Information Technology Contracting (GITC) framework.^[1]  It was designed for the purpose of guiding all Queensland Government Information and Communications Technology (ICT) contracts.^[2]

What are the differences with the GITC?

In the 1990s, the GITC framework was developed to provide a standard form contract for the procurement of ICT products and services by all Australian governments, however a 2015 review by the former Department of Science, Information Technology and Innovation determined the framework failed to meet the needs of both the government and industry suppliers.^[3]

The QITC framework attempted to rectify these issues by apparently streamlining and safeguarding the ICT procurement process, with particular regard given to impacts on contracts involving smaller enterprises and start-ups.^[4]

Amendments included increasing the contracting options available and introducing variations for moderate and high-risk agreements, which did not exist previously.

Furthermore, the QITC removed the need for ITC suppliers to hold mandatory accreditation to provide products and services to agencies, irrespective of the contract value.  Removing accreditation requirements also eliminated the need for suppliers to enter into a head agreement with the Queensland Government to ascent to standard terms of contract conditions.^[5]

Lastly, while agencies are required to have regard to the recommendations, it is no longer mandatory to use a specific contracting option in particular circumstances. If an agency uses one of the four contracting options, it will be complying with the QITC framework.^[6]

These changes apparently make procurement a more efficient and supplier-friendly process, despite placing a greater burden on agencies to undertake adequate due diligence and independent risk assessments.

What is the QITC contracting framework and how does it work?

The QITC framework consists of four (4) different contract bases, including:

• general contract;
• comprehensive contract;
• supplier’s terms and conditions; and
• bespoke contract.^[7]

The general and comprehensive contract bases are most commonly used as they provide for low through high-risk agreements which make up the bulk of ICT procurement by the Queensland government. Supplier terms and conditions are recommended only for the lowest risk contracts with a value less than $100,000, while bespoke contracts are only applicable for very high and extreme risk procurements, making both options less widely used.^[8]

QITC general contract

The QITC general contract is recommended for contracts which are low risk and are valued at or less than AUD $1 million.^[9]  The QITC general contract includes two (2) documents:

• general contract conditions; and
• general contract details.

The general contract conditions document sets out the definitions and interpretation for the general contract details, which is the actual contract that needs to be filled out and completed.

QITC comprehensive contract

The QITC comprehensive contract is generally used for contracts which are moderate or high risk (regardless of value), or are valued more than AUD $1 million.^[10]

The QITC comprehensive contract is comprised of the comprehensive contract conditions and details, both functioning the same as the equivalent general contract documents explained above. 

In support of these documents, there are also eleven (11) schedules, seven (7) modules, and seven (7) module order forms (MOF) for those modules.  The schedules consist of optional documents and templates, meanwhile, the modules address particular transaction types. The schedules and MOFs must be filled out and completed, meanwhile, the modules themselves set out definitions and interpretation for the MOFs. These are all set out below.^[11]

Schedules

The schedules within the QITC comprehensive contract include:

• schedule 1 (price and payment terms updated);
• schedule 2 (project implementation and payment plan);
• schedule 3 (statutory declaration by subcontractor);
• schedule 4 (confidentiality privacy and conflict of interest deed);
• schedule 5 (escrow agreement);
• schedule 6 (financial security);
• schedule 7 (performance guarantee);
• schedule 8 (service levels);
• schedule 9 (acceptance testing);
• schedule 10 (statement of work); and
• schedule 11 (change request).

The QITC comprehensive contract User Guide sets out that schedules 1, 2, 8, 9, 10 and 11 can be used as a starting point for developing a QITC comprehensive contract. Meanwhile, schedules 3 – 7 are are purpose-specific legal agreements, deeds or declarations.

Modules and MOFs

The modules within the QITC comprehensive contract include:

• module 1 (hardware);
• MOF 1 (hardware);
• module 2 (software);
• MOF 2 (software);
• module 3 (as a service);
• MOF 3 (as a service);
• module 4 (systems integration);
• MOF 4 (systems integration;
• module 5 (telecommunications services);
• MOF 5 (telecommunications services);
• module 6 (managed services);
• MOF 6 (managed services);
• module 7 (ICT professional services); and
• MOF 7 (ICT professional services).

Links and further references

QITC contracts

QITC General Contract Conditions

QITC General Contract Details

QITC Comprehensive Contract Conditions

QITC Comprehensive Contract Details

QITC comprehensive contract schedules

Schedule 1 – Price and payment terms

Schedule 2 – Project implementation and payment plan

Schedule 3 – Statutory declaration by subcontractor

Schedule 4 – Confidentiality, privacy and conflict of interest deed

Schedule 5 – Escrow agreement

Schedule 6 – Financial security

Schedule 7 – Performance guarantee

Schedule 8 – Service levels

Schedule 9 – Acceptance testing

Schedule 10 – Statement of work template

Schedule 11 – Change request template

QITC comprehensive contract modules

Module 1 – Hardware

MOF 1 – Hardware

Module 2 – Software

MOF 2 – Software

Module 3 – As-a-Service

MOF 3 – As-a-Service

Module 4 – Systems Integration

MOF 4 – Systems Integration

Module 5 – Telecommunications Services

MOF 5 – Telecommunications Services

Module 6 – Managed Services

MOF 6 – Managed Services

Module 7 – ICT Professional Services

MOF 7 – Hardware

Other links

ICT contracting framework

Create an ICT contract

Mind your Gs and Qs – The new ICT contracting framework

About the QITC framework

Further information

If you are a software developer, managed service provider or Saas Provider and need a QITC compliant contract compiled or advice on a QITC contracts, contact us for a confidential and obligation free and discussion:

Disclaimer

This article contains general commentary only.  You should not rely on the commentary as legal advice.  Specific legal advice should be obtained to ascertain how the law applies to your particular circumstances.

[1] Queensland Government, ‘ICT Contracting Framework’ (Web Page, 9 July 2022) https://www.business.qld.gov.au/industries/science-it-creative/ict/tendering-government/contracting-framework.

[2] Queensland Government, ‘About the QITC Framework’ (Web Page, 30 June 2022) https://www.forgov.qld.gov.au/finance-and-procurement/procurement/buy-for-queensland-government/buying-categories/ict-products-and-services/about-the-qitc-framework.

[3] Crown Law Queensland, ‘Mind your Gs and Qs – The new ICT contracting framework’ (Web Page, 23 August 2017) https://www.crownlaw.qld.gov.au/resources/publications/mind-your-gs-and-qs-the-new-ict-contracting-framework.

[4] Crown Law Queensland, ‘Mind your Gs and Qs – The new ICT contracting framework’ (Web Page, 23 August 2017) https://www.crownlaw.qld.gov.au/resources/publications/mind-your-gs-and-qs-the-new-ict-contracting-framework.

[5] Crown Law Queensland, ‘Mind your Gs and Qs – The new ICT contracting framework’ (Web Page, 23 August 2017) https://www.crownlaw.qld.gov.au/resources/publications/mind-your-gs-and-qs-the-new-ict-contracting-framework.

[6] Crown Law Queensland, ‘Mind your Gs and Qs – The new ICT contracting framework’ (Web Page, 23 August 2017) https://www.crownlaw.qld.gov.au/resources/publications/mind-your-gs-and-qs-the-new-ict-contracting-framework.

[7] Queensland Government, ‘ICT Contracting Framework’ (Web Page, 9 July 2022) https://www.business.qld.gov.au/industries/science-it-creative/ict/tendering-government/contracting-framework.

[8] Queensland Government, ‘Create an ICT contract’ (Web Page, 14 June 2021) https://www.forgov.qld.gov.au/finance-and-procurement/procurement/buy-for-queensland-government/buying-categories/ict-products-and-services/create-an-ict-contract.

[9] Queensland Government, ‘Create an ICT contract’ (Web Page, 14 June 2021) https://www.forgov.qld.gov.au/finance-and-procurement/procurement/buy-for-queensland-government/buying-categories/ict-products-and-services/create-an-ict-contract.

[10] Queensland Government, ‘Create an ICT contract’ (Web Page, 14 June 2021) https://www.forgov.qld.gov.au/finance-and-procurement/procurement/buy-for-queensland-government/buying-categories/ict-products-and-services/create-an-ict-contract.

[11] Queensland Government, ‘Create an ICT contract’ (Web Page, 14 June 2021) https://www.forgov.qld.gov.au/finance-and-procurement/procurement/buy-for-queensland-government/buying-categories/ict-products-and-services/create-an-ict-contract.

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