Feature

Model Agreement

MISMA

Project Type

Large, complex new-build ICT or technology-enabled change.

Small to medium, second/third generation, outsourced ICT services which involve little or no application development activity.

New development activity

Significant and possibly high risk.

Not significant and low risk.

Core services

Operational services;

Additional services;

Future services.

Transition services/activities;

Legacy services;

Transformed services.

Due diligence

Expected to be a significant task, particularly in relation to the Operating Environment. Risk in not completing adequate due diligence could be high.

Operating Environment issues not significant, reducing the amount of due diligence required and the associated risks.

Pre-service commencement

Not applicable.

Transition and services/activities in accordance with contractual Transition Plan and transition milestones.

Service commencement and ATP

On Service Commencement Date following "Authority To Proceed" (ATP) after development, implementation and successful testing.

Legacy services from the Service Commencement Date.

Transformed services following testing and ATP (see Section 3)

Pre-ATP activity

Implementation and testing phases containing a number of contractually fixed milestones.

Transformation phase in parallel with delivery of legacy services ending in ATP milestone (other milestones are optional). Transformation in accordance with contractual Transformation Plan and milestones (including ATP).

Pre-ATP testing

Detailed test plans.

Test plans proportionate to delivery risk of new service arrangements.

Assets

Title of assets normally assigned to service provider creating duty of care and insurance responsibilities.

Some or all assets will transfer to the Contractor at Service Commencement Date. Title of assets procured in support of transformation likely to be with Contractor.

Intellectual Property Rights

Rights ownership with the party best able to exploit them. Source code for project specific software held in Escrow.

Insignificant project-specific IP. No automatic associated Escrow obligations.

Supply Chain

Key subcontractors can play major delivery role. Hence option for Authority to possess significant supply chain rights and require flow-down of key clauses into subcontracts.

Subcontracting typically not significant and full supply chain rights not required.

Step-in

Various triggers for full or partial step-in.

No step-in rights.

Authority termination for convenience

Right exists and may be unfettered.

No right.

Payment

Recoverable (until Contract Performance Point) payments on successful achievement of milestones.

Option of fully recoverable phase payments (down payments on milestone payments).

Monthly service payments.

No CPP. Phase and milestone payments unlikely although there may be a single non-recoverable payment at ATP.

Monthly service payments.

Financial Model

Contractualised basis of payment calculation, change control pricing, termination payment calculation, etc.

No detailed financial model.