Overall alignment
2.82 The single seller arrangements (SSAs) meet most of the policies applicable (to the extent that SSA policy provisions automatically apply to all contracts placed under head agreements, or to the extent that buyers can negotiate the options included in SSAs relating to policy provisions into their contracts), however, gaps exist in the inclusion of some policies in all of the SSAs (e.g. Supplier Code of Conduct is not included in all SSAs) and the policies' implementation effectiveness (e.g. CAIP Plans and Skills Guarantees targets are not actively in place).
2.83 This necessitates improvement in some areas identified:
- As the policy and technology environment changes over time, the SSAs can become out of step, resulting in gaps in meeting the current policy environment that will need resolution. In particular, this relates to the value of many of the contracts established under the SSAs substantially exceeding the thresholds for CAIP Plans and the Skills Guarantee. Compliance with these policies has been deferred to buyers when establishing contracts under the head agreement, and the review anecdotally confirmed that buyers have not implemented these policy requirements.
- The automatic exemptions under the DTA Contract Limits and Reviews Policy create an advantage for some SSA sellers, as the SSAs sellers can provide pricing reflective of a larger contract value (i.e. greater than $100m) and over a longer period of time (i.e. more than 3 years) than would otherwise be allowed. Some SSA sellers also shared their preference for longer arrangements, indicating this would enable them to provide improved pricing through greater discounts.
- While the agreements contain provisions allowing inclusion of legislation and policy as they evolve, consideration is required of the minimum cyber and security requirements applicable to the products and services provided by SSA sellers (and which cannot be excluded in contracts). Consultation will be required with Home Affairs and ASD to identify and define these requirements where warranted.
- Stakeholders identified the need to define digital and data sovereignty (refer to further discussion of sovereign capability presented in “Inquiry into supporting the development of sovereign capability in the Australian tech sector”) and localisation requirements as they relate to the products, services and solutions in the technology sector. Until there is common agreement and understanding of these concepts, the Commonwealth’s ability to undertake an analysis of the types of data, information, products and services requiring stronger cyber and security (and other) provisions is diminished.
2.84 Further, ongoing monitoring by the DTA is required of the upcoming changes, including:
- The new sustainability reporting requirements introduced under Chapter 2M of the Corporations Act 2001 for financial years beginning on or after 1 January 2025.
- The Environmentally Sustainable Procurement Policy which came into force from 1 July 2025 for ICT goods, requiring establishment of new Supplier Environmental Sustainability Plan. This is particularly relevant for physical IT products (e.g. hardware).
- The implementation of the Secure Australia Jobs Code as indicated by the Buy Australian Plan.
- The outcome of the DTA's consultations on the Procurement and Sourcing Policy and related standards.