Recommendation: 35

Recommendation: 35

Deliver value for money and better outcomes through a new strategic, service-wide approach to using external providers

Overall status: Underway

Thodey guidance	Status	Delivery on Thodey
Finance to develop, for Secretaries Board endorsement and Government agreement, a framework for APS use of external providers. Framework to focus on better decision-making, value for money and outcomes.	Underway	The Department of Finance established a whole-of-government panel arrangement for the procurement of non-ICT consultants, labour hire and contractors. An Audit of Employment was completed by the Department of Finance and the APSC to establish a baseline of how much external workforce was used in 2021-22, and for what types of work. The Audit informs the APSC’s work to establish and embed a Strategic Commissioning Framework which was released in October 2023. The Framework consists of flexible, principle-based guidance to assist Commonwealth agencies to make well-informed decisions about when roles should be filled by APS employees, and when the external workforce may be an appropriate option. It will provide support for agencies to follow best practice for the identified resourcing approach, such as ensuring value for money, when the external workforce is engaged. The Department of Finance is currently working to establish a whole-of-service approach to outcomes-based contracting. This will increase APS skills in writing statements of requirements for the circumstances when it is appropriate to use external consultants. The newly established Australian Government Consulting function is preparing Guidance on Engaging External Consultants
Finance Centre of Procurement Excellence to drive innovation and better outcomes in APS procurement, including aggregating and applying procurement information to deliver efficiencies.	Underway	The Centre of Procurement Excellence within Finance is working with entities to understand and develop capability needs, including through the Commonwealth Procurement Capability Self-Assessment Survey. It promotes value for money and innovation in procurement through the Commonwealth Procurement Awards for Excellence.

Thodey guidance

Status

Delivery on Thodey

Finance to develop, for Secretaries Board endorsement and Government agreement, a framework for APS use of external providers. Framework to focus on better decision-making, value for money and outcomes.

Underway

The Department of Finance established a whole-of-government panel arrangement for the procurement of non-ICT consultants, labour hire and contractors. An Audit of Employment was completed by the Department of Finance and the APSC to establish a baseline of how much external workforce was used in 2021-22, and for what types of work.

The Audit informs the APSC’s work to establish and embed a Strategic Commissioning Framework which was released in October 2023. The Framework consists of flexible, principle-based guidance to assist Commonwealth agencies to make well-informed decisions about when roles should be filled by APS employees, and when the external workforce may be an appropriate option. It will provide support for agencies to follow best practice for the identified resourcing approach, such as ensuring value for money, when the external workforce is engaged.

The Department of Finance is currently working to establish a whole-of-service approach to outcomes-based contracting. This will increase APS skills in writing statements of requirements for the circumstances when it is appropriate to use external consultants.

The newly established Australian Government Consulting function is preparing Guidance on Engaging External Consultants

Finance Centre of Procurement Excellence to drive innovation and better outcomes in APS procurement, including aggregating and applying procurement information to deliver efficiencies.

Underway

The Centre of Procurement Excellence within Finance is working with entities to understand and develop capability needs, including through the Commonwealth Procurement Capability Self-Assessment Survey. It promotes value for money and innovation in procurement through the Commonwealth Procurement Awards for Excellence.