Strategic review of the whole of Australian Government single seller arrangement

Getting the most out of the single seller arrangements (SSAs) once established

Nurturing the strategic partnership

5.142 A successful strategic partnership requires mutual commitment and proactive engagement from both the seller and the buyer. While the SSAs must demonstrate ongoing alignment with the elements outlined within the Fostering strategic partnerships section of this report, buyers also play a critical role in fostering collaboration. This includes maintaining open and transparent communication, ensuring timely decision-making, and actively participating in shared initiatives such as innovation forums and continuous improvement programs. 

5.143 Buyers must also honour their commitments, engage constructively in contract management, and adapt procurement strategies to evolving needs, reinforcing trust and long-term alignment. By demonstrating reciprocity in the partnership, buyers not only secure optimal outcomes but also encourage sellers to invest in sustained value creation beyond the initial contractual terms.

Ensuring access to knowledge, information and education

5.144 Effective utilisation of contractual arrangements depends on ensuring stakeholders have access to clear, relevant, and practical information.

5.145 The key mechanisms identified as available to the Digital Transformation Agency (DTA) to enable this to occur were:

• DTA information sessions: introductory sessions to educate procurement and contract management teams across the Australian Government on what is contained within the SSAs. (The DTA already run these sessions which were noted by those that attended them to have been well run and informative Further, DTA’s recording of these sessions reflects better practice to enable those who were unable to attend the sessions to view later).
• Communities of practice: facilitated by the DTA and significant users of the SSAs, established to share learning and better practices across the Australian Government.
• Information on BuyICT: publishing information for self-serve, on-demand access.
• SSA Handbook: provides a plain English overview of the specific components within a specific SSA, summarising key information for ease of reference by users.
• Direct point of contact: enabling stakeholders to contact the DTA to ask further questions.
• Procurement Bulletins: a procurement focused publication issued monthly by Finance.
• Procurement Centre of Excellence: inclusion of topics of interest for showcasing.
• Participation in governance forums: the DTA has established governance forums for some SSAs, which provide a regular cadence of meetings with the sellers, the DTA and select agencies to share challenges, performance issues and maximise the use of the SSA.

5.146 The information required by buyers and how this is accessed in respect of the SSAs is outlined in the table below:

5.147 The DTA can also play a key role in fostering a probity-safe environment where Commonwealth agencies can engage directly with SSA technical representatives to explore opportunities and challenges. By facilitating structured discussions, the DTA can ensure buyers can collaborate effectively while maintaining transparency and compliance. These interactions allow buyers to better understand seller offerings, get visibility of how other buyers are addressing any common issues, and understand the potential applicability to their specific problems. 

5.148 Further to the Increased administrative burden section within this report, the review heard buyers can find it challenging to know what their obligations are in respect of entering into contracts under the SSA head agreement or specific clauses therein. Greater transparency about the relevant roles and responsibilities in this regard will support the realisation of value from the SSAs.

5.149 These forums could also address challenges identified by survey respondents who stated that there is a need for:

• Increased understanding of the rationale behind decisions relating to the SSAs.
• Enhanced communication and clarity to improve understanding of decision making in the negotiation process.
• Improved pricing transparency through broader sharing of pricing information and ongoing support costs.

5.150 The DTA should drive better realisation of the value of the SSAs through uplifting buyer understanding about the SSAs, by: 

• Making responsibilities between the DTA, buyers and sellers clearer.
• Refreshing the information and education made available to agencies about the SSAs, including any agency obligations.

Improving reporting and transparency

5.151 Effective reporting is central to maximising the value of established contractual arrangements, ensuring transparency, accountability, and informed decision-making. In pragmatic consideration of ‘what gets reported gets managed’, tracking metrics related to contract spend, product and service utilisation, and broader procurement trends are key. Ongoing reporting on contract expenditures and usage patterns allows agencies to assess whether agreements remain fit for purpose, identify areas for optimisation, and ensure that negotiated benefits - such as volume discounts or strategic flexibility - are being fully leveraged. 

5.152 The DTA actively undertake a range of surveys to obtain periodic feedback on the use of the SSAs, including surveys ahead of the renewal of the SSAs to inform contact negotiations. These insights are used to inform continuous improvement.

5.153 The review identified the following in respect of current reporting capability:

• There is poor visibility of whole of Australian Government spends for some of the SSAs, and of the spends by other non-Australian Government buyers, with no single source of truth.
• Discounts realised are difficult to quantify, limiting the DTA's ability to track a key benefit of the SSAs. (Being able to track and measure benefits is a key attribute of the DTA's Benefits Management Policy.)
• There is limited visibility of the use of products or services (e.g. a consolidated list of licences purchased under the SSAs utilised across the Australian Government), limiting DTA's visibility of where value can be further optimised. This ongoing visibility will also support periodic contract reviews, enabling greater traceability of what was initially agreed with sellers comparative to what is actually occurring.

5.154 Improving reporting will also make future negotiation better informed and consistent, with further discussion in the Get timely, accurate data section of this report. By maintaining a structured reporting framework, government entities can proactively manage seller relationships, align procurement with operational needs, and drive continuous improvement.

5.155 In respect of performance reporting of the sellers, the review noted that this is managed mostly at the agency level, with limited overall reporting undertaken by the DTA in respect of the SSAs. In turn, this limits the DTA’s ability to address emerging issues, drive the right outcomes, and monitor the realisation of value from the SSAs.

5.156 Monitoring the aggregate performance of the sellers against the published framework, supported by ongoing feedback from buyers, will provide insight that can assist in ensuring the SSAs remain fit-for-purpose and continue to contribute to achieving value for money. 

5.157 Potential key performance indicators or key result areas which could be implemented are depicted in the following graphic:

5.158 Note, the above measures will require formulation into more fulsome definitions  as well as targets to be defined and the reporting cadence required. 

5.159 Implementation of this performance monitoring will also support the DTA's re-negotiation activities, as a richer information source will be able to be referenced.

5.160 The DTA should uplift reporting on the SSAs to better track the realisation of benefits and monitor ongoing performance, and make this publicly available to the extent practicable.

5.161 Insights may also be obtainable from the DTA's Major Digital Projects Report or audits undertaken by the Australian National Audit Office to better understand the extent of success of major technology implementations as they relate to the SSAs.

5.162 Further, AusTender reporting for SSAs is typically categorised as a Limited Tender by default due to an inheritance rule applied by Finance. Under this rule, the published contract adopts the Standing Order Numbers procurement approach, even though SSAs themselves are not a procurement but rather a contracting framework. Consequently, this default classification does not accurately represent the procurement decision-making process. This is supported by the survey response (Appendix D: Survey results) that reiterates this opportunity for improvement.

5.163 Updating AusTender reporting for SSAs to instead reflect the nature of the procurement activity undertaken by the buyer will improve transparency and compliance with the CPRs. For example, where a DTA marketplace was used, the AusTender publishing needs to reflect this. This approach would more accurately demonstrate how the buyer assessed and selected the SSA as the most appropriate solution, rather than applying a blanket classification that does not align with the actual procurement process.

5.164 The DTA should collaborate with Finance to update AusTender publishing to align to the buyers' procurement approach (e.g. use of BuyICT marketplaces), rather than the default of ‘Limited Tender’ set for the SSAs.

Retain procurement first, contract second approach

5.165 SSAs serve as a contracting framework, not a procurement pathway. 

5.166 Buyers must undertake competitive procurement processes before engaging an SSA seller, as competitive processes are a critical means through which to drive value for money. The importance of this has been repeatedly observed by buyers and the Australian National Audit Office.

5.167 The distinction of the SSAs as a contracting framework is crucial to maintaining buyer autonomy, value for money, and alignment with the buyer’s organisational needs. Treating SSAs as procurement shortcuts risks limiting technology choice, reducing market engagement, and overlooking innovative solutions that may better serve agency objectives. Basing procurement decisions on thorough evaluation, robust market testing, and clear alignment with operational requirements helps buyers retain control over selecting solutions that provide long-term value.

5.168 For example, the Australian Taxation Office recently selected one of the sellers to provision the hardware required as part of a competitive market approach, which subsequently utilised the SSA head agreement and associated contracts. 

5.169 Buyers must take deliberate steps to preserve proper procurement practices to safeguard transparency, market competitiveness, and strategic suitability. Key considerations include:

• Owning the selection of technology solutions that best meet their requirements, rather than defaulting to pre-existing contractual arrangements.
• Avoiding reliance on SSAs simply because they provide an administratively simpler pathway, ensuring procurement remains driven by needs, not convenience.
• Conducting appropriate market engagement, which may include requesting proposals, assessing alternative solutions, and conducting seller assessments before finalising a contractual arrangement.
• Ensuring value-for-money principles remain front and centre, with a structured procurement process that leverages competition, assesses innovation, and aligns with agency-specific service delivery needs.
• Maintaining flexibility in procurement strategy, ensuring agencies do not inadvertently lock themselves into legacy agreements that may not suit future technology shifts.

5.170 By maintaining procurement integrity, buyers can ensure SSAs support the best possible outcomes, rather than dictate procurement choices by default. This approach fosters market engagement, competition, and long-term strategic agility, ensuring the technology solutions adopted remain fit-for-purpose and adaptable to evolving agency needs.

SSA reviews and updates

5.171 SSAs require ongoing review and updates to ensure they remain aligned with operational needs, evolving technology landscapes, and government policy objectives. 

5.172 Regular reviews and updates are a key mechanism for contracts to maintain relevance with the legislative, policy and technology environments as they change. Buyer opinion and insight from other jurisdictions was divided on the optimal frequency of reviews and updates, however, broadly these fell into four horizons:

• Regular contract meetings focused on performance, feedback, optimising service delivery, and operational matters (e.g. invoice payments).
• Annual or semi-annual reviews focused on assessing the product and service offering, reconciling actual versus planned usage, aligning to shifts in technology or policy / legislation, and considering whether the agreements continue to provide strategic value.
• Critical events triggering ad hoc amendments, which happen as required.
• End of contract reviews that focus on re-baselining all elements of the contract so contracts are not rolled over by default.

5.173 Without structured and proactive reviews, SSAs risk becoming outdated or misaligned with buyer priorities and policy, potentially diminishing their effectiveness and reducing opportunities for innovation and efficiency gains.

5.174 To support the review activities, DTA can continue to:

• Consider available market tools (e.g. as provided by Gartner).
• Leverage existing DTA survey mechanisms.
• Obtain feedback from buyers and the SSAs.

5.175 The inclusion of these periodic reviews can be incorporated into the implementation of the recommendation outlined within the Optimising DTA’s role section of this report.