DTA commences consultation on the Digital Seller Underperformance Policy

Government digital contracts are often large and complex, and performance challenges can arise from many factors. The proposed Digital Seller Underperformance Policy (DSUP) provides incentives for digital buyers and sellers to work together to resolve delivery challenges and achieve successful outcomes.  

"Engaging with industry is essential to shaping a policy that is fair, practical and delivers better outcomes," outlines Mr Chris Fechner, CEO of the DTA.  

Have your say

The DTA is seeking feedback from sellers and other industry stakeholders to ensure the policy is fair, clear, transparent and proportionate. We want the policy to support effective collaboration between sellers and Government buyers.  

We will use feedback gathered through this consultation to consider options to apply the underperformance policy to other contract types. Feedback from a wide range of sellers and stakeholders will help to inform these decisions.  

“Insights from this consultation will shape the final version and scope of the policy that delivers stronger information-sharing across Government buyers,” continues Mr Fechner. “Simultaneously, it will help to reinforce a fair, competitive and transparent marketplace for digital sellers of all sizes.”

The consultation is now open and will close on 21 December at 4 PM (AEDT).

Please visit the ‘Have your say’ module for further information on the DSUP.  

Inside the Digital Seller Underperformance Policy

The proposed policy establishes a consistent and transparent process for reporting and assessing notifications of serious underperformance in the Government’s strategically significant digital contracts (contracts valued at $4 million or more or as identified by the DTA).

The policy embeds procedural fairness safeguards, including a ‘right of reply’ for sellers. These safeguards include the DTA assessing agency reports impartially and ensuring sellers have the opportunity to respond before any information is shared across Government. This would support fair, evidence-based decision making across the digital procurement process.

Confirmed cases of seller underperformance will be recorded on a secure, internal-to-government (not public) register, accessible only to authorised government buyers. The policy enables better informed procurement decision making for buyers while protecting commercially sensitive information and ensuring procedural fairness for suppliers.

It is important to note that the DSUP will not preclude buyers from engaging sellers on the register and buyers remain responsible for assessing a potential seller’s suitability.

“The proposed policy strives to strengthen transparency and support more consistent information-sharing across government, not to act as an exclusion mechanism” stresses Mr Fechner.

Next steps

Following closure of the consultation on 21 December at 4pm, we will review the submissions and publish a summary of feedback outlining key themes and any updates to the policy.

The DSUP is expected to be officially released and take effect in early 2026, supported by detailed guidance and engagement to assist agencies and sellers in understanding how the policy will operate in practice.