Core& contracts guidelines

Updated: 25 Oct 2021
How to use the mandated contract templates for low-risk ICT procurement up to $1 million.


The basics

The Core& contracts are contract templates available for the procurement of ICT/digital solutions that are low risk and involve expenditure of up to $1 million.

As part of the ICT Purchasing framework, the use of the Core& contracts is mandated by Procurement Board Direction 2021-02.

The Core& contracts consist of 2 versions depending on your procurement needs:

  • Core&One
  • Core&Combined.

Core&One

Core& One has been designed so you can use it when procuring one individual solution in one transaction.

For instance, if you’re only procuring as-a-service, then Core&One is the contract for you.

Core&One is made up of:

  • the Core&One Core Terms, plus
  • 4 separate Core&One Solution Requirements you can choose from (as-a-service, professional services, software or hardware).

The Core&One Core Terms are then combined with the relevant Core&One Solution Requirements to create the Core& One contract.

Core&Combined

Core&Combined has been designed to be used when you are procuring more than one solution in one transaction.

For instance, if you’re procuring both as-a-service and professional services under one transaction then, Core&Combined is the contract for you.

Core&Combined is made up of:

  • the Core&Combined Core Terms, plus
  • Part A (Combined Common Terms) and Part B (Combined Solution Requirements), which are in one document for ease of reference.

The Core&Combined Terms together with Part A and the relevant solution requirements that you have selected in Part B integrate to create the Core& Combined contract. You can choose more than one solution requirement in Part B.

When to use Core& contracts

The Core& contracts are for low-risk procurements where the contract value is up to $1 million (excluding GST).

Agencies are responsible for conducting a risk assessment for each procurement.

Core& contracts are not suitable for procuring ICT solutions which:

  • are critical inputs to other projects with a higher risk profile
  • could severely or critically affect an agency's functions or service delivery
  • involve personal information being stored or transferred off-shore, or being accessed remotely from offshore by persons who are not authorised
  • involve the performance of services or access to classified environments which require security or police clearances
  • involve multiple specialists from different vendors, increasing risks around coordination and the provision of deliverables within a budget
  • could attract publicity or media attention, increasing the likelihood of additional probity or risk management requirements or political scrutiny.

For further guidance, please refer to the risk identification toolkit XLSX, 90.3 KB available in the ICT Services Scheme. The toolkit is not designed to replace a comprehensive risk assessment and does not override agency policies on risk management or procurement (contracting) requirements.

How to use the Core& contracts: step by step

Step 1: Assess risk and estimate the contract value

  • Is the procurement low risk?
  • Does the total contract value fall within the $1 million threshold (excluding GST)?

If yes, continue to Step 2.

If no, your procurement falls outside these parameters, please continue to use the most appropriate agreement type. Most likely this will be MICTA/ICTA contracting framework.

Good to know

For the purposes of calculating the contract value, this value:

  • should not be split into lower-price components, and
  • must be the estimated total price over the term of the contract, including any optional extension periods, and not a price per annum.

For more information, please refer to our ICT/Digital Sourcing Handbook for Buyers PPTX, 11147.19 KB.

Step 2: Using the right Core& contract for your procurement

  • Are you procuring only one individual solution? For example, only procuring software.

If yes, continue to Step 3a.

If no, you are procuring more than one solution, go to Step 3b.

Step 3a. Procuring one individual solution

Use the Core&One Core Terms.

Choose one of the Core&One Solution Requirements templates that matches your procurement needs from the following options:

This template is for services performed by personnel, based on the buyer’s requirements.  It is available for both ICT and non-ICT professional services.

Professional services do not include resources provided under the direction, control and supervision of the customer. This type of external labour is covered by the Contingent Workforce Scheme.

This template is for services delivered ‘off premises’, outside the buyer’s environment via a service stack (including software/hardware components). Characteristics of as-a-service commonly include:

  • services are shared, delivered to multiple clients
  • pricing is subscription or consumption-based
  • solution requirements are focused on service performance and outcomes, rather than how the supplier manages back-end service delivery.

This template is for licensing software that is hosted in the buyer’s environment, with options for software maintenance and support.

This template is for the supply of ICT hardware.

Complete and sign the chosen Core&One Solution Requirements template.

Each Core&One Solution Requirements template you fill out and sign creates a separate contract incorporating the Core&One Core Terms.

The Core&One Core Terms govern performance of that contract, including how the solution described in the solution requirements will be supplied.  They take priority over these solution requirements.

Download Core&One templates.

Step 3b. Procuring more than one solution

Use the Core&Combined Core Terms.

Use the Part A Combined Common Terms and Part B Combined Solution Requirements:

  • complete Part A
  • identify categories included in the agreement (professional services, as-a-service, software or hardware) on Part A Signing Page
  • complete information for each selected category in Part B.

Download Core&Combined templates.

Good to know

If you're procuring as-a-service using Core&Combined and decide to terminate the agreement for convenience, there is a risk that any pre-paid amounts will be forfeited.

As such, we recommend assessing the appropriate method of payment earlier on. For example, quarterly payments might help you to minimise risk.

Frequently asked questions

Are the Core& contracts mandatory?

Yes. The Core& Contracts are mandatory for low-risk ICT procurement up to $1 million (excluding GST).

Refer to Procurement Board Direction PBD-2021-02.

Can I vary any of the terms?

Government agencies are permitted to vary the Core& Contracts.

Agencies are not required to seek the written approval of the Department of Customer Service subject to meeting the Governance and Reporting Framework (GRF) requirements. This is as per Procurement Board Direction 2021-02. 

To find out more about the GRF requirement, please email ICTServices@customerservice.nsw.gov.au

How can I provide feedback?

If you have any comments or questions about the Core& contracts, please email us at ICTServices@customerservice.nsw.gov.au