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Establishing and Joining Syndicated CUP Contracts


The following conditions apply to agencies establishing and joining syndicated common use provision or "CUP" contracts.

Agencies are expected to follow good practice when establishing other syndicated or government arrangements. For guidance, see the Office of the Controller and Auditor General's Procurement Guidance for Public Entities

Conditions

For the use of CUP Syndicated Arrangements

  • Agencies shall not approach the market with common use provision (CUP) syndicated arrangements without prior approval from the Syndicated Contracts Review Board
  • CUP syndicated arrangements that have not achieved endorsement must not be promoted to agencies for joining (see note 1)
  • Eligible agencies (see note 2) may join endorsed CUP contracts, subject to supplier(s) and Lead Agency agreement. (Subsidiaries and other types of agencies may be considered for eligibility on a case-by-case basis by the Lead Agency and supplier, in consultation with MED.)
  • Agencies shall not join unendorsed CUP contracts (See note 1)
  • The terms and conditions of the CUP contract ("Master Agreement") apply to all participating agencies. Core terms and conditions, including pricing, must not be re-negotiated for individual participants
  • The expiry date of the CUP contract ("Master Agreement") applies to all participating agencies. Agencies may join only for the period remaining under the Master Agreement and shall not re-negotiate the contract term

For including a common use provision (CUP) in a contract

  • The procurement process must be conducted in accordance with the Government Procurement Policy Framework and meet the requirements of Mandatory Rules and Standards
  • Procurement must be by way of open tendering
  • A notice of the intended syndicated procurement must be published on the Government Electronic Tenders Service (GETS) website (See note 3)
  • All tender advertisements and documents must clearly state that a CUP will be included in any subsequent contract, subject to endorsement
  • The contract must have a finite term
  • The contract must make provision for periodic market price benchmarking, where appropriate
  • The contract must be endorsed (See note 1)

Note 1: Except as provided under transition arrangements

Note 2: Public Service departments; Non-Public Service departments; Crown entities (with the exception of School Boards of Trustees); Public Finance Act Fourth Schedule Organisations; the Reserve Bank of New Zealand; Offices of Parliament; State-owned enterprises; and Local Authorities. For agency listings, see the SSC website.

Note 3: Specific reference to syndicated procurement must be made in the advertisement published on GETS (general information field) as well as any attached documentation.

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