PREFERRED SERVICE PROVIDER - POLICY CONSIDERATIONS
Preferred Service Provider (PSP) Process*
*Exemptions based on PSP status can only be
applied if the service provider is a
Not-For-Profit or Local Government Organisation
Public Authorities must determine whether the service provider is:
- continuing to meet the identified need;
- meeting the agreed service specifications, quality standards and contractual requirements;
- operating efficiently and effectively; and
- actively engaged in continuously improving services to provide the best possible service to the community.
Procurement Planning,
Evaluation and Contract
Management
Value For Money
The State Supply Commission requires that Public
Authorities undertake robust processes to ensure
that procurement activities achieve best value for
money outcomes.
Achieving best value for money outcomes requires
a public authority to ensure that its procurement
activities are aligned with Government policies,
objectives and strategies and that it actively
supports whole of government initiatives.
Effective planning at the project initiation stage, a
comprehensive evaluation process and effective
contract management
post-contract award is critical to facilitating
successful contract delivery.
Probity and
Accountability
Open and Effective
Competition
Open, effective competitive processes maintain
transparency and integrity and provide fair and
equitable access to government supply
opportunities
A public authority must be able to demonstrate that
it conducts its procurement activities with high
standards of probity and accountability.
Exemptions from Competitive Requirements
A public authority is not required to comply with
minimum competitive requirements for a
procurement where the Accountable Authority
considers that circumstances exist which support
the requirements not applying to the procurement.
Justify and document these decisions.
Current
Service
Agreement
Concluding
Service Review
Undertaken?
(6-12 months prior
to end date)
For Example:
How long since the market
was tested?
Is there an ongoing
Community Need?
Does the Service still align
with Departmental Goals
and Objectives?
Is the current service
agreement “suitable”?
i.e. Does it deliver
appropriate outcomes as
they were intended?
Yes
Seek
Internal Approval
Discuss ongoing need with
current Service Provider.
Choosing to test the
market may still be the
most appropriate option
if this process has not
been undertaken in
some time.
Develop an
appropriate
procurement
strategy.
Yes
Ongoing
Need?
No
Bring service
agreement to a
close.
Consider other
options
including testing
the market.
PSP Review Considerations
Refer to DCSP Policy (p.11)
No
Is the Service Provider a Not-For-Profit or Local
Government organisation?
- Current Service Provider meets service
specifications, quality standards and contractual
requirements.
- Current Service Provider is operating efficiently
and effectively.
- Current Service Provider is actively engaged in
continuously improving services to provide best
possible service to the community.
Accountable Authority approves the decision
to enter a
PSP arrangement.
(use the Community Services Request for
Exemption template).
Initiate discussions about
design of the current service
incorporating any findings
from the service review as
required.
Ensure that proposed service
agreement is structured in a manner
that will support sustainable service
delivery with a fair and appropriate
price.
Update service specification,
quality standards and service
agreement requirements in
accordance with discussions.
Ensure service delivery model is
kept in line with current practice.
Develop an
appropriate
restricted Request
(PSP) procurement
strategy.