The Digital Transformation Agency (DTA) has released the draft Panel Agreement terms for Software and Cloud under the Digital Marketplace Panel 2 (DMP2).
The terms are being shared ahead of the formal consultation period, which will open in October 2025, to give stakeholders ample time to review and prepare feedback.
Based on the DTA's research and consultation with industry experts, government CIOs and buyer agency representatives, three major changes to how software and cloud will be procured are being introduced.
Combining cloud and software
Previously, software and cloud procurements were divided into two panels: Software Marketplace and Cloud Marketplace.
Under DMP2, these will be combined into a single set of categories that encompass both.
Categories are organised by the function of the software or service, rather than by deployment method. This allows sellers to offer both Software-as-a-Service and on-premises solutions within one panel arrangement.
This change aims to reduce duplication across panel arrangements and minimise confusion for buyers and sellers.
Simplifying the purchase of AI products
The DTA has also added a category under software and cloud for AI and Machine Learning.
During the development of the new terms for DMP2, the agency said it has seen AI products "rapidly evolve", with demand growing for AI systems and experimentation.
This product category will complement the ‘AI Engineering’ category for professional services that will be open for applications in October 2025.
End User Licence Agreements
The DTA's research on End User Licence Agreements (EULAs) gathered thoughts on different approaches, such as a model Government EULA or a set of minimum terms that apply to all contracts as overarching principles.
The agency received feedback that buyers support a standardised model to reduce risk and streamline their procurements, as negotiations on EULA terms can be long, as well as sellers needing flexibility to allow for appropriate allocation of risk and terms specific to a proposed solution.
As a result, the DTA is proposing a model that does not include third party EULAs in contracts.
Instead, where the seller proposed solutions requires terms that do not align with the agreement, the seller can put those forward separately for the buyer to consider.
For contractual relationship between the buyer and publisher, the DTA has developed a Software and Cloud Licensing agreement.
This will be used where a reseller facilitates the arrangement, but is not responsible for the product or service.
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