A Local-State Government Spatial Data Sharing Partnership

Chapter 3 – Collaboration, Partnerships and the Government Environment
of the agreement is less definitive, but the terms of the agreement need to be long enough
for each organisation to grow and evolve within the partnership. Ledrum suggests a
minimum of five years, but also identifies the most successful partnerships as those that
work on the basis of “no contract and no term”.
Importantly, this definition implies that partnerships need to be strategic from the outset,
with a view to evolving over time and taking advantage of collaborative opportunities.
Mutual trust is correctly defined as a critical and essential element of partnerships which is
supported by most other literature. The term “world-class” is taken to represent the need
to incorporate world best practice by looking outside the immediate arrangement in order
to learn from successful world-wide initiatives.
The definition also identified the need for sustainability of the venture to ensure that the
initial efforts are not wasted but are converted into a sustaining operation. Finally, it states
that the partnership should have a separate and positive impact on the operations outside of
the actual partnership. These positive impacts would be a clear indication of the value of
the partnership and could be used more widely as a model for further co-operative
approaches.
3.3.3 Partnership Agreements and Models
Partnership agreements may comprise informal or formal agreements. Informal
agreements may consist of a letter of intent, a heads of agreement or memorandum of
understanding. In each case the intent is to establish a non-legally binding framework that
provides each party defined objectives over a specified period of time (Gerdes 2003). On
the other hand, formal agreements may take many forms including licensing and
distribution agreements, marketing agreements, or master agreements. Gerdes identified
that licensing and distribution agreements are common, and generally consist of five
critical components, including:
1. a licensing grant – what is being licensed and its limitations of use;
2. performance measurements – defining how objectives are to be achieved and
measured;
3. performance level – defines the standard of expected or minimum performance;
4. licensing payments – usually based on the above; and
5. guarantees – to ensure continuity. (Gerdes 2003, pp. 142-7)
Most partnerships are managed through a written contract or formal agreement and do not
involve the formation of a legal entity such as a joint venture. The nature of the formal
77