Requirements in order to be eligible for Preferred Service Provider status

An existing community service provider may be given Preferred Service Provider (PSP) status through undertaking a PSP assessment.

A PSP assessment is a part of the Service Review.  

There are four criteria for assessing the Preferred Service Provider status.  The existing provider must be: 

  • continuing to meet the identified need  
  • meeting the agreed service specifications, quality standards and contractual requirements 
  • operating efficiently and capable of meeting the service requirements 
  • continuously providing improved services to the community

Continuing to meet the identified need

Show more
Your agency should assess the community need.

Assessing this criterion may include asking:  

  • Is there a continuing need for the existing service? 
  • Is the need at the current location? 
  • Is the  service agreement addressing the needs of the target group? 

You agency should look at: 

  • Analysing the demographics  
  • Assessing feedback from the target group and community 
  • Evaluating Service reviews  
  • Reviewing whether the service being procured still fits with your strategic plans and operational frameworks

Meeting the service specifications, quality standards and contractual requirements

Show more
This assessment is mainly a desktop review of existing reports, reviews and communications

Your Service review and assessment of PSP status should involve reviewing the provider’s past performance. Questions you should ask include:

  • Is the provider meeting progress/activity reporting requirements? 
  • Assess the timeliness of service reporting, business or activity plans over the previous service agreement.  
  • Is data captured accurately? 
  • Does the provider report data accurately  and are errors corrected quickly? 
  • Is the provider meeting quality standards? 
  • Are there standards applicable to the service agreement? 
  • Are there any compliance concerns? 

Managing the service efficiently and effectively

Show more
PSP status requires the service to fulfil the current needs of the service agreement

Your agency should review if the existing provider can show:  

  • service outcomes are being met 
  • the service is being used by the target market 
  • staff have ongoing training  
  • service delivery is continuous
  • appropriate governance, policy and procedures are met

This information should be available from existing reports and other communications with the service provider.  

Continuously providing improved services to the community

Show more
Your agency should assess whether the service delivered to the community is improving and if there is ongoing relationships within the sector and the stakeholders.

Has the provider responded to feedback on their service? 

Reporting and contract management may capture this or this may come as direct feedback to your agency from the service users or peak body.  

How do they capture feedback?   

Can the service provider show engagement with key stakeholders? 

If the provider meets the PSP criteria, can I undertake the PSP process?

Show more
Meeting the PSP criteria does not immediately mean using the PSP procurement method

You might consider alternate procurement methods to PSP if:  

  • your agency has not recently tested the market and the market has changed
  • more competitiveness in the market means there may be better value for money outcomes for the community
  • the service is of high strategic importance to your agency

 Who can approve the PSP status? 

Your agency’s Accountable Authority must justify and document the decision not to go through the open tender process and award a service agreement to an existing provider.  

Page reviewed 4 September 2019