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About MoUs & BLAs

A Memorandum of Understanding (MoU) is an agreement between a software owner and the UK public sector, which Government Procurement Service manages on its behalf. It usually contains the structure of the pricing and discount levels that a software owner is willing to offer to a Government Entity that purchases commercial software and services. This can either be directly or through a 3rd party, for the use of that Government Entity. An MoU is not in itself an EU compliant route to purchase. Purchases made under an MoU are still subject to compliance with appropriate UK and European Community procurement legislation as well as all other applicable laws.

Some software owners operate Bulk Licence Agreements (BLAs), which may be more cost effective than purchasing individual licences. These licensing initiatives are intended to lower the cost of software purchases for commonly used software applications. BLAs consolidate the purchasing power of the UK public sector to obtain optimal pricing and/or preferred terms and conditions for widely used commercial software. These agreements provide users with lower prices while software owners get potentially higher sales volume at a lower cost due to the simplified approach to dealing with the UK public sector. Again, a BLA is not in itself an EU compliant route to purchase.

Benefits

Using the MoUs and BLAs provides organisations with:

  • Significant discounts from economies of scale
  • General lowest price across Government
  • Relationships with existing resellers can be maintained
  • No need for specific negotiations
  • Improved terms and conditions for public sector
  • Government-wide issues addressed

Who can use these Software Licensing Agreements?

In general, all public sector organisations can benefit from the terms of these agreements. Exceptions for some of the MoUs and BLAs include charitable organisations, regulated industries and utilities and certain bodies not funded directly by Government.  Each MoU and BLA defines who can use it but if you have any queries on whether your organisation is eligible, please contact the Government Procurement Service Customer Service Desk on 0345 410 2222 or email info@buyingsolutions.gsi.gov.uk.