Review and evaluate the contract

It is best practice to undertake an evaluation of the service agreement before it is closed or transitioned to a Preferred Service Provider.

Agencies must have a review and evaluation system that will meet accountability requirements, measure achievement of outcomes and identify areas for improvement.  

Service reviews must be undertaken at appropriate intervals including at the reasonable request of a service provider to assess: 

  • service design and delivery
  • volume of services
  • sustainable pricing
  • performance
  • the achievement of outcomes

Reviews should be conducted collaboratively with the service provider, and with enough time for the agency to re-tender the existing service agreement before it expires. They should provide a clear understanding of future requirements and procurement options to the agency. 

Extend or finalise the contract

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Service agreements are most commonly finalised or extended when the term has ended, and the service provider has met all obligations.

Service agreement managers are required to provide notice in writing to service providers at least three months before the expiry of the term.  

Before a decision is made, it is best practice to undertake an evaluation of the overall performance of the service provider and service agreement with enough time for the agency to re-tender if required. The review should be undertaken collaboratively with the service provider. The review should highlight: 

  • volume of services 
  • service design  
  • outcomes achieved 
  • level of compliance with the General Provisions for the Purchase of Community Services and quality requirements 
  • feedback from key stakeholders on the impact of the service agreement meeting the community need  
  • stakeholder satisfaction with the service delivery 
  • the service provider’s experience working with the agency 
  • lessons learnt  

The review should give a clear understanding of the future requirements and procurement options available to the agency.  

The service agreement manager must do the following final administrative duties at the agreement’s closure: 

  • finalise any outstanding discussions or disputes 
  • document lessons learnt 
  • complete record keeping responsibilities 
  • facilitate the return of any agency property such as records 
  • report to senior staff and stakeholders 
  • checking and finalising any transition arrangements

Extend the contract

The options to extend will differ between service agreements. They will be detailed in the Request document and confirmed in the Award letter. Under Clause 3.2(a) of the General Provisions for the Purchase of Community Services, ‘The State Party has the option or options (exercisable in its absolute discretion) to extend the Term for the period or periods (as applicable) specified in the Service Agreement’.  

Extensions for service agreements ending 30 June 2020

There are a number of service agreements with an expiry date of 30 June 2020. If your agency is planning to extend these service agreements, please be aware that the Western Australian state election is currently scheduled for 13 March 2021. Consistent with previous elections the caretaker period is likely to apply from the official start of the election period, which is traditionally the date of the issue of the writs.

The caretaker role requires that government agencies refrain from making decisions that could bind an incoming government, such as entering into major contracts and commitments. This may impact on the ability of government agencies to make procurement decisions such as awarding service agreements and commencing new procurement processes.

Three month notice period

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Service providers must be provided with a minimum of three months’ notice where a service agreement will cease, not be renewed, or will be substantially reduced.

Receiving formal advice three months prior to the cessation, non-renewal or substantial reduction of a service agreement allows service providers to work with government agencies to transition service users to new arrangements, where applicable, and provide a reasonable timeframe for service providers to make and implement business decisions.  

The three-month notice period commences once your agency provides certainty about the future of the service agreement to the service provider. 

Page reviewed 30 January 2020