A collaborative arrangement is a contractual arrangement that involves a joint operating activity.

These arrangements involve two (or more) parties that meet both of the following requirements:

  • They are active participants in the activity
  • They are exposed to significant risks and rewards dependent on the commercial success of the activity

    Central Procurement Directorate establishes contracts and agreements which can be used by a number of government departments, agencies and other non-departmental public bodies – these are defined as ‘collaborative arrangements’.

    You may have heard the phrases ‘pan-government contracts’ or ‘framework agreements’ used – these are examples of collaborative arrangements.

    Who will find the ‘collaborative arrangements’ information useful?

    If you work in a public sector organization, and your business area needs some supplies, services or works, you should first check the list of current arrangements to establish if there is already a pan-government contract or agreement available for you to use. A list of organizations which can use the collaborative arrangements is provided. If it is not clear whether your organization can use the contract, contact the relevant CPD branch.

    Alternatively, if you are a supplier organization interested in selling to the government, the list of current arrangements will let you know who the current contractors are, and the expiry dates for the arrangements. You may wish to contact the current contractor about subcontracting opportunities.

Books: Wiley GAAP 2017 – Interpretation and Application of Generally Accepted Accounting Principles – Joane M Flood