Common Capability contracts
Explains what common capability contracts are and how an agency can use them.
- A Common Capability contract (CC) is a type of approved collaborative contract. CCs establish various supply agreements with approved suppliers for selected common goods or services or works purchased across government. CCs may be established by a Functional Leader’s agency or by another lead agency that is approved and overseen by a Functional Leader, with prior approval from the Procurement Functional Leader.
- CCs may cover mandatory and/or voluntary common capabilities:
- Mandatory common capabilities: Some agencies may be directed to purchase certain goods, services or works from a CC. These are called mandatory common capabilities. The direction may be made by Cabinet, a Functional Leader, or under section 107 of the Crown Entities Act 2004. An agency that wants to opt-out of purchasing mandatory common capabilities must get approval from the relevant Functional Leader. Information about mandatory common capabilities is available on the Who can use collaborative contracts page and Buying products and services on the Digital.govt.nz website
- Voluntary common capabilities: when a common capability is voluntary, an agency should purchase from the CC when it reasonably meets the agency’s needs.
- Before approaching the market, an agency should check if there is an existing CC contract that meets its needs. CCs are listed on the contracts register.
What's different about Common Capability contracts?
Common Capability contracts (CCs) differ from All-of-Government and syndicated contracts because:
- in some instances, a private sector supplier may be authorised to purchase from a CC when it is an authorised agent acting on behalf of an agency
- in some CCs, the lead agency may charge a participating agency an admin fee or levy.
More information on CC-ICT contracts
Common Capability contracts are being used in the procurement of information, communication and technology (ICT) goods and services. These are called CC-ICT contracts.
CC-ICT contracts are usually overarching agreements entered into by a Functional Leader (or another agency with Functional Leader oversight) with suppliers. They can come in a number of contractual forms, such as a paper-based agreement or, in an online marketplace context (e.g. cloud services), online terms that suppliers must accept to participate.
These contracts are developed under the oversight of the Government Chief Digital Officer (GCDO) at the Department of Internal Affairs (DIA) (as the Functional Leader for Government ICT), in collaboration with others and with the approval of the Procurement Functional Leader.
Procuring ICT goods and services across government presents a range of unique challenges as well as great potential for collaboration. The development of CC-ICT contracts provides an opportunity to drive transformational change in the delivery of ICT services across government.
Seamless provision of ICT goods and services
Given the often complex nature of ICT, some of these contracts are designed to allow, where appropriate, private sector suppliers to work together to supply seamless end-to-end ICT goods and services to agencies. This means that agencies and, where authorised, suppliers acting on behalf of agencies or supplying services to agencies may purchase from these contracts.
How mandatory common capabilities apply across the public sector