Benefits relative to the costs and risks
3.109 When considering the costs versus the benefits, there is a clear net benefit to the Australian Government in having the SSAs in place. This is evident from the benefits (e.g. discounts) far exceeding the total cost of the DTA’s management of the arrangements.
3.110 It is acknowledged that the costs of the buyers are not factored into the cost of DTA’s management of the arrangements. Whilst interviews indicated the SSAs can require some additional work by buyers to ensure alignment between their requirements and the terms in the SSA head agreements, there was near unanimous agreement that having the SSAs is a net benefit for the buyers.
3.111 Further, when considering the risks of having the SSAs, the risk profile is considered LOW to MEDIUM, which is reasonable.
3.112 Further to the Alignment to policy, strategies and legislation section of this report, the DTA should, as appropriate, expand the use of SSAs as a contracting framework for the Australian Government. With reference to the What should be prioritised section of this report, key focus should be placed on:
- Fostering strategic partnerships.
- Consideration of the holistic value proposition on offer.
- Being realistic about future needs of buyers.
- Keeping the arrangements simple.
- Ensuring flexibility.
- Building in an exit plan.