Renew the service agreement strategy

At the end of term, service agreements may be transitioned from one service provider to another.

A transition period may involve: 

  • undertaking a new procurement process for an existing service 
  • negotiating a preferred service provider process with an existing service provider  
  • closing the service agreement indefinitely  

New procurement process

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Tender processes for a new service provider often need to be conducted while a service agreement is still going.

During this time, you must ensure you avoid any actual or perceived bias. This especially important if the service provider that you are currently engaging will submit an offer for a re-tendered service. Service agreement managers can avoid any actual or perceived bias by: 

  • maintaining high standards of honesty and ethical principles 
  • providing all communication with the current service provider to all other potential respondents 
  • recording all communication with the current service provider 
  • conducting all briefings for the new procurement process without involvement from the current service provider

Service provider handovers

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Managing handover from an outgoing service provider to a new service provider requires careful relationship management.

An amicable and professional handover will maximise the transfer of information and knowledge to the new service provider.  

Handover may involve: 

  • formal and informal discussions between parties 
  • arranging to give the new service provider access to procedural documents and processes used by the outgoing service provider 
  • assisting the transfer of custody and/or ownership of assets and service agreement materials to the new service provider 
  • holding discussions between the new service provider and stakeholders, particularly senior managers in your agency and service users. This will give the new service provider a first-hand view of stakeholder requirements and expectations

Preferred service provider

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Agencies may exercise the option of retaining an existing service provider through a restricted process.

The service provider becomes known as the Preferred Service Provider (PSP) 

Page reviewed 2 September 2019