All organisations can use this asĪ baseline for exit clause discussions. The MoUs have a standard exit support clause. making sure the contract is with a UK provider.reducing combined negotiation time for departments and providers.allowing flexibility for departments to add additional requirements.using the government’s scalability to achieve better commercial outcomes, such as negotiating larger discounts for smaller departments.agreeing a baseline of commercial, technical, security and legal principles with each CSP.The agreed clauses are then incorporated into the contract signed between the organisation and the CSP. The terms agreed within the MoU are automatically passed on to qualifying organisations (typically, all public sector organisations) who fulfil criteria agreed with the provider, irrespective of the procurement route chosen. Any discounts agreed can vary between CSP. Also, any new departments/agencies joining the scheme would also benefit from the larger discount rather than the cost of entering into a single customer contract with that provider. Under a cross-departmental MoU, the 2 organisations would combine their spend commitments and receive a larger discount. If another organisation also commits to spend the same amount, they too would receive the same discount. This MoU aims to set out special terms and pricing for CSPs products and services which the provider will then make available to all public sector organisations.ĬSPs signing an MoU should view the government as a single customer with multiple points of purchase and consumption.įor example, if a single department commits to spending a large amount with a provider, they might receive a discount on the published rate. This MoU is a commercial tool for maximising the value of total government spend with any cloud service provider (CSP).Ĭrown Commercial Service have negotiated a common MoU cloud procurement process with multiple CSPs and continue to roll this out to additional providers. A Memorandum of Understanding (MoU) is a non-legally binding agreement between two parties, which shows intended common actions.ĭuring cross-departmental working initiatives, Crown Commercial Service identified a need for a new cross-departmental cloud MoU as part of the One Government Cloud Strategy (OGCS).
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