Chapter 4: Jurisdictional comparison
Chapter overview
Whilst nations across the world have a wide range of models to engage technology sellers, Australia is not unique in seeking benefits through scale. Representatives from Canada, New Zealand, the USA and the UK unanimously agreed that whole-of-government contracts are sensible, and some have similar arrangements in place.
Even in Australia, States and Territories commonly have their own whole-of-government arrangements. Additionally, some also leverage the Commonwealth’s arrangements, although there are mixed views as to whether the benefits outweigh the overhead resulting from misalignment with State and Territory policy and technology requirements.
Overall, learnings from other jurisdictions and nations, included:
- The benefit of a central authority (like the Digital Transformation Agency (DTA)) in stewarding and fostering effective relationships with the major technology sellers, and supported by a clear mandate, legislative frameworks and financial control.
- The importance of driving flexibility in the arrangements to address diverse buyer needs and risk profiles, balancing this with administrative burden and complexity.
- Robust reporting processes drive improved transparency, helping governments identify trends, optimise investments and strengthen negotiations.
- Where other nations find themselves in a position of dependency or with high switching costs, contracts can be moved to negotiating a rolling contractual window basis (e.g. 5 years), negotiating one out-year at a time.
- Some use mechanisms, such as online IT Service Catalogues, to help with ease of access to clear information, which helps buyers navigate complexity inherent in these arrangements, and supporting them in maximising their value.
The review noted that without whole-of-government contracts, pricing disparities were commonly cited as a key issue across agencies within other nations. A fragmented approach typically favours sellers.
Whilst globally there is no definitive way to best design and deliver whole-of-government agreements, retaining the single seller arrangements (SSAs) is supported by comparisons with other similar jurisdictions globally.