Memorandum of Understanding
Memorandum of Understanding (Template)
Purpose: The purpose of the Memorandum of Understanding (MOU) is to establish the terms of the agreement among all external parties and the Public-Private Partnership (PPP). The MOU may include descriptions of the Partnership goals and objectives, an outline of the roles and responsibilities of all parties, discussion of resource contributions, the governance structure, and the period of performance. This MOU template is designed to help PPP partners draft the MOU by outlining the contents of each section and using a PPP case study as an example of how each section is to be completed.
The MOU is used to set forth the understanding and intentions of the two organizations that propose working together to achieve shared and complementary goals. It is used to gauge the intention and commitment of the transacting parties. Some situations warrant the use of a softer document that only captures the intentions of the parties, and thus an MOU is not legally binding.
The MOU should not be used to acquire or establish a partnership for procurement of new work. The interested parties should use a teaming agreement for that purpose. The MOU should be used only when partnering with an established organization for a common goal. The MOU is used solely to outline the working responsibilities of each organization. Although the participating organizations may choose to outline the costs for which each will be responsible under the agreement. A monetary value should not be assigned to the MOU.