Preferred Service Provider service agreement variation

A Service Agreement variation is used when there is a variation (change) to the existing service agreement.  Variations may be made to:  

• price or price schedule 
• volume of services 
• term  
• service model 
• service level outcomes/indicators 
• location of services  
• quality standards 
• service review dates

PSP Service Agreement variation process

A PSP Service Agreement variation is based on discussion and negotiation between your agency and the PSP, in line with the Partnership Principles of the Delivering Community Services in Partnership policy.

The following steps establish the PSP service agreement variation: 

1. Undertake a service review to establish that the service provider is eligible for PSP status and that a PSP service agreement variation would be in the best interests of service users and the community.
2. Consult with the service provider, preferably in person, to discuss the community need and design the new specification together. A PSP service agreement variation can only be approved if the service provider agrees to it.
3. The specifications should address the need, quality standards and service agreement requirements expected from the varied service agreement. Your agency should be checking with the service provider that the proposed service agreement reflects fair pricing and supports sustainable service delivery; prices may need to rise to reflect increased costs of service delivery.
4. Update the specification and any other changes to the service agreement in a Service Agreement Variation Memo (available at Community services templates and guides) to reflect the discussions with the service provider.   
5. Complete the Service Review Report Request Exemption for Preferred Service Provider (available at Community services templates and guides).
6. Attach the completed and approved Service Review Report Request Exemption for Preferred Service Provider to the Service Agreement Variation Memo.
7. If the variation exceeds $5 million, submit the service agreement variation to the Community Services Procurement Review Committee (CSPRC).
8. Issue a preferred service provider variation letter (available at Community services templates and guides) to the service provider detailing the agreed changes to the service agreement. 
9. Publish the value on Tenders WA if the variation is $50,000 or above.