Syndicated CUP Contracts: Expectations and Responsibilities

Lead Agencies

The role of "Lead Agency" comes with a responsibility to achieve successful procurement outcomes on behalf of other agencies.  

Agencies that join CUP contracts may have had little or no involvement in the up-front tender process and may not have the level of expertise required to fully investigate and analyse the market themselves before joining.  Agencies joining CUP contracts, therefore, rely on the Lead Agency to ensure that a robust procurement process that allows participants to meet to their obligations under the Government Policy Framework, Mandatory Rules and Standards has been followed and that the CUP contract will enable participants to achieve best value for money over the life of the contract.  The syndicated contracts review and endorsement process will help to provide agencies interested in joining endorsed CUP contracts with greater assurance that this is the case.

Lead Agencies of syndicated CUP arrangements are expected to:

• Conduct procurement activities within the Government Procurement Policy Framework and in accordance with Mandatory Rules and Standards
• Adhere to the conditions for including a common use provision in the contract and for the use of CUP contracts
• Operate in the best interest of participants, as well as their own agency
• Structure the arrangement to meet the core requirements of participants
• Ensure that the Master Agreement is well structured, contains robust conditions to facilitate the syndicated arrangement, and is legally sound
• Promote only endorsed CUP contracts*
• Provide a single point of contact for agencies interested in joining the CUP contract for publication on the Procurement website (www.procurement.govt.nz). 
• Develop and implement a contract management plan to ensure that the respective contract management responsibilities/commitments of the Lead Agency and participating agencies are clear and benefits anticipated from the contract are achieved
• Appoint someone to manage the relationship with the supplier
• Ensure participating agencies are appropriately informed/consulted (as agreed up-front) on Master Agreement variations, reviews, price changes, decisions on options to extend the contract for additional terms, and completing the arrangement.

* Except as provided under transition arrangements.

CUP Contract Suppliers

Suppliers of CUP contracts are expected to:

• Promote only endorsed CUP contracts*
• Provide a single point of contact for agencies interested in joining the CUP contract for publication on the Procurement website (www.procurement.govt.nz)
• Sign agencies up only to endorsed CUP contracts*
• Adhere to the conditions of use for CUP contracts
• Sign an addendum to the Master Agreement to create a separate binding contract with each participating agency
• Offer participating agencies the core terms and conditions of the Master Agreement and limit negotiation to service levels and schedules
• Ensure the term of contractual arrangements with participating agencies is limited to the term remaining under the Master Agreement
• Keep the Lead Agency appropriately informed of participation in the CUP contract

Suppliers are also encouraged to advise MED's Government Procurement Development Group of any unendorsed CUP contracts being promoted in the market*

* Except as provided under transition arrangements.

Participating Agencies

Agencies joining CUP contracts are expected to:

• Conduct procurement activities within the Government Procurement Policy Framework and in accordance with Mandatory Rules and Standards
• Ensure their Annual Procurement Plan includes procurement needs that may be met by joining syndicated arrangements rather than going to market
• Undertake sufficient market analysis and research to establish that joining an endorsed CUP contract offers value for money and meets the needs of their agency
• Join only endorsed CUP contracts*
• Adhere to the conditions of use for CUP contracts
• Sign an addendum to the Master Agreement to create a separate binding contract with the CUP contract supplier
• Use the core terms and conditions of the Master Agreement and limit negotiation with the CUP contract supplier to service levels and schedules
• Ensure that the term of the contractual arrangement between the agency and the CUP contract supplier is limited to the term remaining under the Master Agreement
• Ensure contract award notices for procurement needs met through syndicated arrangements are posted on GETS, where required
• Honour non-disclosure/confidentiality agreements and use information relating to CUP contracts appropriately
• Ensure the Lead Agency's role and commitments in relation to managing the Master Agreement are understood
• Manage the agency's contractual relationship with the supplier
• Advise the Lead Agency as early as possible of supplier performance issues; their intention to participate for any additional terms provided for under the Master Agreement; and any intention to terminate or withdraw from the contract
• Advise MED's Government Procurement Development Group of any unendorsed CUP contracts being promoted in the market*

* Except as provided under transition arrangements.

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