Insights from our consultation shape new principles for the coordinated contracting arrangement suitability framework

The DTA has published new coordinated contracting arrangement (CCA) principles to provide greater transparency about future seller eligibility. They set out to clarify what good performance looks like and strengthen the focus on delivering broader policy outcomes alongside value for money.

The new CCA principles will require prospective CCA sellers to demonstrate they can:

• plan and deliver strategic capability at scale 
• accept the Australian Government’s requirements/ protections 
• contribute to broader economic benefits for Australians 
• strengthen Australia’s sovereignty 
• preserve Australian Government technology choice
• ensure accessibility for small to large Australian Government buyers. 

“The new principles set clearer expectations and will help to make sure government investment delivers stronger economic outcomes,” explains Simon Quarrell, Deputy CEO - Digital Investment Advice and Sourcing Division, DTA. “Investments ought to build workforce capability.”

“These principles will increase transparency and accountability while creating new opportunities for Australian technology companies to participate in global supply chains.”

These new arrangements are used where there is a clear need across government and where a common approach can get a better result; using the scale of government to get better terms and conditions, and to achieve better alignment to policy outcomes. 

How we built these principles

The DTA recently sought feedback on a discussion paper to inform the approach to seller eligibility for CCAs. The feedback received was instrumental to shape the final arrangement principles. We sought views on:

• volume sourcing
• strategic alignment
• aligned terms and conditions
• broader economic benefits
• workforce capability and upskilling

We received 24 responses from government buyers, sellers, industry and members of the wider community. 

“The consultation demonstrated the depth of expertise and experience across the sector,” explains Nicole Bain, Branch Manager for Whole-of-Government Contracts. “I want to sincerely thank everyone who contributed.”

“Your feedback has validated and strengthened our understanding of the opportunities and challenges ahead and will play an important role in shaping the future of Coordinated Contracting Arrangements across the Australian Government.”

CCAs should deliver broader net public value, not just lower prices

Respondents want the CCAs to deliver net public value, rather than focusing solely on aggregating discounts. 

While volume discounts remain important, respondents highlighted the value of dynamic pricing and flexibility in areas such as licence reallocation, scaling up and scaling down.

Respondents also highlighted operational and strategic benefits as important contributors to overall public value. Centrally negotiated terms can help agencies manage risk and reduce the complexity of contract negotiations, allowing them to focus on more strategic supplier relationships.

CCAs should be transparent, predictable and support sellers through policy changes

Sellers consistently emphasised the importance of clear and transparent CCA principles. They want to understand what qualifies a seller for a CCA, which obligations are mandatory, and how they will be supported as policies evolve over time.

CCAs should uplift the whole of government while delivering public value

Respondents noted that broader economic benefits can be delivered in many ways, not just through infrastructure investment. Potential benefits include:

• investing in local jobs
• developing Australian delivery capability
• building sovereign capability and resilience
• encouraging innovation.

Find out more

We have launched the new CCA principles and will incorporate it into the governance of our CCAs going forward. 

The framework for CCAs is one of the 5 recommendations to come out of the strategic review of the whole of Australian Government single seller arrangements.

The DTA will continue to work on implementing the remaining recommendations.