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Commercial management
Factors that improve delivery confidence in commercial management include flexibility in the contract to allow for learning and change in delivery, clarity in the roles and responsibilities and appropriate risk/reward sharing.
Contracts should include clearly defined management processes, incentives and deliverables, and should be designed to avoid counterproductive terms and conditions, such as over reliance on individual day rate contractors.
- Other factors to consider when assessing delivery confidence include the supplier performance, supplier capacity and capability, and the degree of integration of suppliers in the delivery organisation.
- Early engagement with commercial partners can also improve delivery confidence, developing stronger working relationships and a more realistic understanding of objective feasibility.
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DCA tolerances
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High
Procurement decisions are made on detailed analysis of reliable and complete data. The contract has clearly defined deliverables, management processes and anticipates change. There is a productive relationship between the agency and contractors.
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Medium high
Procurement decisions are made on analysis of data. The contract has defined deliverables, management processes and anticipates change. There is an established relationship between the agency and contractors.
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Medium
Procurement decisions are made on data. The contract identifies deliverables but does not accommodate change. There is a working relationship between the agency and contractors.
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Medium low
Procurement decisions are made on incomplete data with poorly formulated criteria. The contract may lead to some counterproductive behaviour. There is a degrading relationship with the contractor.
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Low
Procurement decisions are made on flawed or incomplete data without explicit criteria. The contract does not provide an effective basis for contractor management or delivery. There is an adversarial relationship with the contractor.
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Procurement decisions are made on detailed analysis of reliable and complete data. The contract has clearly defined deliverables, management processes and anticipates change. There is a productive relationship between the agency and contractors.
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Procurement decisions are made on analysis of data. The contract has defined deliverables, management processes and anticipates change. There is an established relationship between the agency and contractors.
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Procurement decisions are made on data. The contract identifies deliverables but does not accommodate change. There is a working relationship between the agency and contractors.
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Procurement decisions are made on incomplete data with poorly formulated criteria. The contract may lead to some counterproductive behaviour. There is a degrading relationship with the contractor.
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Procurement decisions are made on flawed or incomplete data without explicit criteria. The contract does not provide an effective basis for contractor management or delivery. There is an adversarial relationship with the contractor.
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Supporting policy
The Digital Sourcing Policy. Digital sourcing policies exist to provide agencies with a modern approach to structuring contracts that reduces risk, drives competitive outcomes, increases flexibility and fairness, and encourages competition.
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Maintain a reliable service
Available and consistent: Make your service available, stable and consistent for users in different places and time-zones, at different times, on different days. Schedule maintenance for a predictable period of downtime and give notice to users well ahead of time.
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Assurance research series: 01
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Connect with the digital community
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