Are ‘evergreen’ contracts allowed under the CPGs?
No. Evergreen contracts are contracts which have no expiry date or which include a perpetual option. They are not consistent with the policy framework in the CPGs as there is usually no way of demonstrating and ensuring that the principle of value for money is being achieved without an approach to the market within a reasonable period. These contracts are also likely to limit competition. All contracts should regularly and objectively be reviewed to test that they continue to represent value for money. In practice this generally occurs when an agency approaches the market.
