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ICANN Resolutions » Approval of Agreement with Australian Continuous Improvement Group Pty Ltd. for Secretariat Support to the GAC

Important note: The Board Resolutions are as reported in the Board Meeting Transcripts, Minutes & Resolutions portion of ICANN's website. Only the words contained in the Resolutions themselves represent the official acts of the Board. The explanatory text provided through this database (including the summary, implementation actions, identification of related resolutions, and additional information) is an interpretation or an explanation that has no official authority and does not represent the purpose behind the Board actions, nor does any explanations or interpretations modify or override the Resolutions themselves. Resolutions can only be modified through further act of the ICANN Board.

Approval of Agreement with Australian Continuous Improvement Group Pty Ltd. for Secretariat Support to the GAC


Resolution of the ICANN Board
Topic: 
Approve longer term engagement with ACIG
Summary: 

Board to approve a longer term agreement with ACIG Consulting Firm

Category: 
Board
Meeting Date: 
Wed, 29 Oct 2014
Resolution Number: 
2014.10.28.01
Resolution Text: 

Whereas, Australian Continuous Improvement Group Pty Ltd. (ACIG) is a consulting firm that has provided secretariat support to the GAC pursuant to temporary short-term interim agreements.

Whereas, the GAC, ACIG and ICANN desire to finalize a longer-term engagement.

Whereas, the temporary short-term agreements to date have not required Board approval; however, the longer-term engagement now under consideration would likely exceed the US$500,000.00 contracting and disbursement limits of the current Disbursement Policy and would therefore require Board approval.

Whereas, the GAC has secured the informal commitment of certain donor country GAC members to reimburse ICANN for any disbursements ICANN makes under the proposed agreement and the donor countries have established a not-for-profit association in Switzerland, the GAC Secretariat Funding Association, to provide the funding under this agreement.

Whereas, ICANN's acceptance of and reimbursement for these disbursements from the donor countries shall be subject to confirmation that such payments and reimbursements comply with requirements of the Office of Foreign Assets Control (OFAC), the Foreign Corrupt Practices Act (FCPA), and other applicable laws and regulations focused on compliance with anti-corruption and government imposed economic sanctions.
Resolved (2014.10.28.01), the Board authorizes the President and CEO, or his designee(s), to take all actions to enter into the required contracts with, and make all required disbursements to Australian Continuous Improvement Group Pty Ltd. (ACIG), under the following terms: the ACIG agreement shall provide for a one-year term, with ICANN having the right to extend the term of the agreement for an additional successive one-year term, and a second successive term to expire at or around 31 July 2017, upon at least 90-days written notice prior to the expiration of the then current term, with total disbursements during any one-year period not to exceed US$900,000.

Rationale for Resolution: 

Secretariat support services for GAC activities are important to ensure that the GAC is able to fulfill its role of providing advice to ICANN on issues of public policy, and especially where there may be an interaction between ICANN's activities or policies and national laws or international agreements. The GAC and its Chair and Vice Chairs require considerable secretariat support in connection with their activities in support of ICANN. To date such support has been provided pursuant to temporary short-term interim agreements with Australian Continuous Improvement Group Pty Ltd. (ACIG).

The GAC and ICANN wish to provide for longer-term secretariat support for the GAC.

Because the GAC is not a legal entity with an established budget, a mechanism needs to be established for engaging a consulting group to provide such services to the GAC. ICANN's Disbursement Policy limits ICANN officers from contracting for or disbursing more than US $500,000.00 per obligation. Fees payable to ACIG could exceed the contracting and disbursement limits of the Disbursement Policy.

Accordingly, to ensure that the GAC receives secretariat support services, the Board is therefore authorizing the President and CEO to enter into all required contracts and make all required disbursements, with ACIG, with the understanding that disbursements under the proposed contracts are anticipated to be reimbursed by one or more donor countries. The GAC has secured the informal commitment of certain donor country GAC members to reimburse ICANN for any disbursements ICANN makes under the proposed agreement and the donor countries have established a not-for-profit association in Switzerland, the GAC Secretariat Funding Association, to provide the funding under this agreement. Because that Funding Association is not otherwise staffed nor has the ability to monitor the performance of the Secretariat, it is not feasible for the ACIG to be directly engaged through there. The Board's action will have a positive impact on the community because it supports the important role that the GAC plays in providing advice to ICANN on issues of public policy.

Although ICANN did not follow its usual Procurement Guidelines or issue RFQs or RFPs in connection with this engagement, the GAC prepared a request for proposals and selected the vendor in a competitive bidding process and finds the proposed contract to be a viable, cost-effective solution. The process for selection of this vendor does not call for public consultation, as the GAC's assessment of the suitability of the vendor is the primary consideration.

If the donor countries reimburse ICANN in full for all expenditures under the agreement, there will be no financial impact on ICANN to enter into the agreement. If the donor countries fail to reimburse ICANN in full for all expenditures, ICANN could be responsible for payment of as much as US$900,000 per year under the agreement, but financial exposure and risk is mitigated by ICANN's having the right to terminate the agreement on ten days notice if termination is necessary to ICANN's overall business needs.

There is no impact on the security or the stability of the DNS due to the engagement of ACIG to provide GAC secretariat support.

This is an Organizational Administrative function that does not require public comment.