When entering into an arrangement with a supplier for the procurement of information and communications technology (ICT) related goods and services, a government agency (within the meaning of the Act) must use the Procure IT Framework. 

For the benefit of suppliers and Government, and to ensure consistent ICT contract terms, government agencies are not permitted to amend the standard terms of the Procure IT Framework without the written approval of the Department of Finance, Services and Innovation. The Department will approve changes that are reasonable and necessary to accommodate unique features of a particular procurement.

Intellectual property

The revised Procure IT Framework creates the default (or the starting contractual) position in favour of the ICT supplier owning the intellectual property (IP) in the information and communications technology (ICT) product that the supplier develops under the contract with a government agency. 

Under the default position the supplier grants the agency (as the 'customer') a broad free-of-charge licence to use the IP, and transfer it between agencies.

An agency can elect on the General Order Form within the Procure IT Framework for IP to be vested with the agency, on the bases of public interest, ‘exceptional circumstances’ or where the agency (alone or in partnership) has undertaken substantial research and development of an ICT product or service and where retention of IP benefits the agency.

Examples may include: security and/or strategic (including commercial) interest; law enforcement; IP applying to critical government ICT systems; and IP that includes personal information. Agencies should satisfy themselves that these circumstances exist when taking measures to retain the IP in ICT procurement contracts. 

Documented reasons for retaining the IP should be kept by the agency. In these cases of retained IP, the agency grants the supplier a full use licence without charge (including the right to commercially exploit).

This direction applies from 1 September 2012 until it is withdrawn.