The Australian Government has introduced new rules for Departments and Agencies to follow when planning the appointment of an outside consultant or contractor.
Set out in the lead-up to Budget Paper No. 4 under the heading ‘Getting the Balance Right’ the new rules are to apply across the Australian Public Service, will require reporting on the total spend on contracts and consultancies and will be overseen by a specialist panel.
The Paper says that while the Government promotes a flexible approach to resourcing that strikes the right balance between a core workforce of permanent public servants and selective use of external expertise, it recognises that access to skills can come through training, recruitment and procurement.
“A contractor or consultant may efficiently address the need for specialist skills that could not be expected to be held in-house, or suit temporary or project-specific needs,” the Budget Paper says.
“When temporary contractors and consultants are used judiciously, the APS can avoid the ongoing costs that result from recruiting additional permanent public servants.”
It says the new rules will require reporting on the total spend on contracts and consultancies, as well as reports of the amount spent on the largest contracts, to ensure consistency across all Agencies.
“In recognition of the need to continue to get this balance right, the Department of Finance will establish a whole of Australian Government procurement panel for consultancy services,” the Paper says
It says the new panel will leverage the Commonwealth’s collective buying power to ensure best value when it engages with businesses to draw on their expertise and strategic advice.
‘The panel will be mandatory for non-corporate Commonwealth agencies and will consolidate a range of existing agency arrangements to provide a consistent framework, and reduce administration and tendering efforts for industry.”
It says the panel will also increase transparency through improved data and reporting.
“It is anticipated the first phase, for financial management advisory services, will commence by 1 July 2021,” the paper says, “with the other phases for corporate and commercial services, operational by mid-2022.”
