Digital Seller Underperformance Policy
Overview
The Digital Transformation Agency (DTA) has developed and administers this Digital Seller Underperformance Policy (DSUP) as part of its Australian Government digital sourcing oversight role. The DSUP enables information-sharing within government about Serious Underperformance by digital Sellers on major government Strategic Digital Contracts, so Buyers can make better-informed procurement decisions.
The DSUP includes the following documents:
- Digital Seller Underperformance Policy (DSUP) (this policy), which provides the rationale, intent, scope, and principles of the policy
- Digital Seller Underperformance Policy: Standard (DSUP Standard), which includes key requirements such as who should do what, under what conditions, and when
- Digital Seller Underperformance Policy: Guidance (DSUP Guidance), which provides procedures, examples, and tools to help Buyers and Sellers implement and adhere to the DSUP.
The DSUP documents should be read together for a full understanding of this policy.
In the DSUP documents, capitalised key terms have the meanings given in Appendix A: Glossary of the DSUP (this policy).
If you have questions about this document or the DSUP generally, please Email the DTA at DSUP@dta.gov.au.
Purpose and objectives
The purpose of the DSUP is to establish a unified whole-of-government approach to identifying and sharing information about Serious Underperformance by digital Sellers engaged under Strategic Digital Contracts. It will supplement existing procurement frameworks by creating an internal-to-government mechanism to capture and share substantiated instances of Confirmed Serious Underperformance for consideration in future procurement processes.
The DSUP will:
- support better-informed digital procurement decisions. It will enable Buyers to evaluate a Seller’s past performance on applicable contracts when assessing new tenders, by providing access to information about the Seller’s history of Confirmed Serious Underperformance
- drive performance improvement through accountability. The DSUP will encourage collaboration between Buyers and Sellers to resolve delivery challenges, by making past Serious Underperformance more visible and thus encouraging proactive remediation and improved contract management
- safeguard public value in digital projects. The DSUP supports the proper use of public funds and improving outcomes for digital projects, ensuring projects are designed well and deliver their intended objectives and value to the Australian Government
- provide assurance to Ministers and stakeholders. Through the DTA’s oversight, the DSUP will provide confidence that Buyers are considering Sellers’ past performance on Strategic Digital Contracts as one aspect of a Buyer’s procurement due diligence checks, and that major digital projects are monitored and managed for successful delivery in line with government objectives.
Policy application
Participants and contracts covered
The DSUP applies to Buyers and Sellers that are party to Strategic Digital Contracts. These key terms are defined in Appendix A: Glossary of the DSUP.
Under the DSUP, if the DTA decides that a Seller’s underperformance under a Strategic Digital Contract meets the criteria for Serious Underperformance, the DTA will include the Confirmed Serious Underperformance status on the Confirmed Serious Underperformance (CSU) Register. Information from the CSU Register will be made available to other Buyers on a strict need-to-know basis when they are evaluating that Seller in future digital procurement processes. This supports a consistent, transparent approach to sharing Serious Underperformance information across government that goes beyond the management of individual contracts.
Exclusions
The DSUP does not apply to:
- State, Territory, or local government contracts
- matters under formal investigation by authorities or subject to court proceedings, until proceedings are concluded. For example, during a fraud investigation or litigation. If an investigation or proceedings eventually provide an adverse finding, a Buyer may then report Serious Underperformance to the DTA under the DSUP, if the Buyer considers it may impact the Seller’s suitability for future work.
The DSUP is not:
- designed to address underperformance by Buyers or to manage disputes where both Buyer and Seller performance may be factors – its focus is on Seller Serious Underperformance relative to the Seller’s contractual obligations
- a ‘blacklist’ or banning mechanism – Sellers with a Confirmed Serious Underperformance status are not automatically barred or excluded from doing business with the Australian Government
- an escalation or dispute resolution tool or process for contract issues. It does not override or replace standard contract management procedures or legal remedies. Buyers remain responsible for managing their contracts, including addressing underperformance through the contract’s dispute or performance management clauses, and for exercising any contractual rights or remedies as appropriate
- to be used by Buyers as a tool to gain leverage in contract negotiations or enforcement – for example, it must not be invoked to threaten Sellers during an ongoing project or to extract concessions outside of the contract’s terms.
Periodic reviews
The DTA will periodically review and update the DSUP documents to adapt to changing market conditions, technological advancements and feedback. The DTA will consider impacts for both Buyers and Sellers to ensure the DSUP remains fair and effective over time.
Commencement
The DSUP takes effect from 6 July 2026. It applies to Serious Underperformance occurring on or after the commencement date for Strategic Digital Contracts. Buyers may Submit Serious Underperformance Reports to the DTA from the commencement date.