Streamlined
Contracting
Framework
A quick guide
March 2015
Streamlined contracting is a new approach to purchasing social services across government, which
aims to improve how we contract with NGO providers.
The key elements are:
 a common contract template (Outcome Agreement)
 standard government terms and conditions (Framework Agreement)
 a collective approach to measuring outcomes (Results Based AccountabilityTM - RBA).
Anticipated benefits
Over time, the Streamlined Contracting Framework (SCF) will reduce duplication of work and
compliance costs, and increase efficiency across NGOs and government agencies. This will enable us
to focus on creating better outcomes for whānau and vulnerable people living in New Zealand.
The new framework offers:
 Fairer and more balanced contract terms for NGO providers.
 Standard terms and conditions for contracts, so NGOs can focus on service delivery.
 A focus on identifying and measuring improved client outcomes using RBA.
 Tools and templates that support more consistent contract management.
 Enhanced ability for NGOs to work collaboratively across multiple government agencies,
based on a common understanding and approach (using SCF and RBA).
 Better decision-making based on collected data. This will identify opportunities for
collaborative contracting and reduce duplication of contract management activity, such as
audit and monitoring.
Background
Cabinet directed the Ministry of Business, Innovation & Employment (MBIE) to lead a programme
of work to begin transitioning public service departments (and the wider state services agencies that
contract with NGOs) into a new outcome-focused contracting framework. The SCF was developed
during a pilot programme undertaken in late 2012.
The framework encourages greater consistency, coordination, collaboration and information sharing
by government agencies and Crown entities. It also aims to reduce the duplication of contract
management activity, especially audit-related activities, and the compliance burden on NGO
providers. This should enable NGO providers to focus on service delivery.
March 2015 Ver 5.0
The SCF includes a focus on outcomes; measuring the things that make a difference rather than
simply measuring activity.
The framework creates a new standard contract when a government agency purchases services from
a NGO provider. The framework should have the same look and feel no matter which government
agency uses it.
Fairer and more balanced contracting terms
The Framework Terms and Conditions (see below) and Operating Agreement provide more balanced
and fairer contracting terms and conditions. There is an optional remedy plan to precede
termination and a narrower indemnity.
Increased focus on outcomes
Historically, funders have been very good at counting activity, rather than the effectiveness of a
service. The SCF brings a greater focus on the desired client outcomes and whether they are being
achieved.
It uses RBA principles to help identify, measure and monitor outcomes, asking if we are doing and
measuring things that make a difference, rather than just counting activity.
More information is available in the Results Based Accountability quick guide and from:
 MBIE website - an overview
 Ministry for Social Development website - guidelines
 Results Based Accountability website - implementation.
User guides
We have developed user guides for the FTC and OA templates. The guides explain why each clause
has been included, some key points and things to think about when drafting an OA.
User guides for the OAMP and DST that step you through when and how to use these documents are
also available at: procurement.govt.nz.
Education and training
MBIE has produced a series of training videos to help government agencies and NGOs understand
more about the SCF and RBA.
If you have any questions about SCF and RBA, please contact:
Adrienne Percy
streamline@moh.govt.nz
March 2015 Ver 5.0
Contracting framework
Definitions
Framework Terms and Conditions
more information about FTC
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Outcome Agreement
OA template: bilateral
OA template: integrated
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The Framework Terms and Conditions (FTC) is a
standard, web-based set of general terms and
conditions. These are incorporated by reference in all
Outcome Agreements between government agencies
(purchasing agencies) and NGOs (providers).
This approach maintains the benefit of the standard
terms and conditions used across all government
agencies.
As the FTC is web-based, there is no need to
physically sign this document.
The OA is a contractual document between a
government agency and an NGO. The OA details the
specific services to be purchased, pricing, reporting,
etc.
The FTC are incorporated by reference into each OA.
The OA template also includes provision for
documenting any variation from the standard FTC,
such as the position on ownership of intellectual
property, agreements on the sharing of confidential
information, and any specific conditions required
following assessment of the provider and services
using the Decision Support Tool (DST).
March 2015 Ver 5.0
Outcome Agreement
Management Plan
OAMP template

The OA can be used for integrated or classical 1:1
contracting arrangements.
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The OAMP is a contract management tool to support
the implementation of the Outcome Agreement. It
does not contain any contractual obligations.
The OAMP is intended to be a flexible document, with
a large number of optional content sections that can
be used (or not) depending on the level of detail
required to support the effective management of the
Outcome Agreement.
The use of an OAMP is discretionary, particularly for
low value low risk short duration engagements (eg <$
50k in value and less than 6 months in duration).
MBIE encourages its use as a matter of good contract
management practice.
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Decision Support Tool
On-line tool
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The DST is an Excel-based tool designed to help
government agencies use a consistent and robust
approach to identifying and managing risks when
planning to enter into an Outcome Agreement with an
NGO.
The DST helps government agencies develop an
overall picture of an NGO in relation to the proposed
services to be purchased, and ensure their proposed
contracting and contract management approach is
appropriate for the risks identified.
It is important to note the DST is designed to be used
after a government agency has decided to enter into
an agreement with an NGO. It is not a suitable tool
for selecting a provider in a competitive process.
March 2015 Ver 5.0