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Commonwealth Indigenous Advancement Strategy Tendering Processes

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Commonwealth Indigenous Advancement Strategy Tendering Processes The Senate Finance and Public Administration References Committee Commonwealth Indigenous Advancement Strategy tendering processes March 2016 © Commonwealth of Australia 2016 ISBN 978-1-76010-394-1 Senate Finance and Public Administration Committee Secretariat: Ms Lyn Beverley (Secretary) Ms Ann Palmer (Principal Research Officer) Mr Nicholas Craft (Senior Research Officer) Ms Sarah Brasser (Administrative Officer) The Senate PO Box 6100 Parliament House Canberra ACT 2600 Ph: 02 6277 3530 Fax: 02 6277 5809 E-mail: [email protected] Internet: www.aph.gov.au/senate_fpa Printed by the Senate Printing Unit, Parliament House, Canberra. ii Membership of the Committee Members Senator Jenny McAllister (Chair) (from 12.11.2015) ALP, NSW Senator Katy Gallagher (Chair from 26.03.2015 until 12.11.2015) ALP, ACT Senator the Hon Kate Lundy (Chair until 23.03.2015) ALP, ACT Senator Cory Bernardi (Deputy Chair) LP, SA Senator Joanna Lindgren (from 23.02.2016) LP, QLD Senator the Hon Joseph Ludwig ALP, QLD Senator Nova Peris ALP, NT Senator Janet Rice AG, VIC Senator Dean Smith (from 13.11.2013 until 23.02.2016) LP, WA Substitute Member Senator Rachel Siewert (replaced Senator Janet Rice) AG, WA Participating Members Senator Claire Moore ALP, QLD iii TABLE OF CONENTS Membership of the Committee ........................................................................ iii List of Recommendations .................................................................................vii Chapter 1.............................................................................................................. 1 Referral ................................................................................................................... 1 Conduct of the inquiry ............................................................................................ 2 Acknowledgements ................................................................................................ 2 Background to the Indigenous Advancement Strategy .......................................... 2 Structure of the report ........................................................................................... 11 Chapter 2............................................................................................................ 13 The Indigenous Advancement Strategy program design and delivery framework ............................................................................................................... 13 Streamlining Indigenous programs ...................................................................... 13 Lack of consultation and engagement with Indigenous communities ................. 14 Program design and framework............................................................................ 16 Suitability of PM&C as a service delivery agency ............................................... 28 Distribution of programs across portfolios ........................................................... 31 Chapter 3............................................................................................................ 37 Administration and review of the first funding round ................................. 37 Communication with stakeholders about IAS ...................................................... 37 Initial six week application period ....................................................................... 40 Changes to timeframes and guidelines for funding .............................................. 42 Consequences of rapid transition for services and service providers ................... 45 The engagement of external organisations to assist the IAS process ................... 46 Building unrealistic expectations ......................................................................... 48 Finalising funding ................................................................................................. 52 PM&C reviews of the transition to the IAS and funding rounds ......................... 56 Conclusion ............................................................................................................ 60 Additional comments of the Australian Greens ............................................. 69 Reinstating funding .............................................................................................. 69 Service gaps .......................................................................................................... 70 APPENDIX 1 ..................................................................................................... 71 Submissions and additional information received by the committee .......... 71 Submissions .......................................................................................................... 71 Additional information ......................................................................................... 73 Answer to Questions taken on Notice .................................................................. 74 Tabled Documents ................................................................................................ 74 APPENDIX 2 ..................................................................................................... 75 Public Hearings ................................................................................................. 75 List of Recommendations Recommendation 1 3.112 The committee recommends that future tender rounds are not blanket competitive processes and are underpinned by robust service planning and needs mapping. Recommendation 2 3.113 The committee recommends that future tendering processes should be planned strategically, with a clear sense of service gaps and community need based on consultation with local services and communities. A tendering or alternative funding process should be conducted in a manner which enhances the capacity of organisations to meet community needs. Recommendation 3 3.114 The committee recommends that future selection criteria and funding guidelines should give weighting to the contribution and effectiveness of Aboriginal and Torres Strait Islander organisations to provide to their community beyond the service they are directly contracted to provide. Recommendation 4 3.115 The committee recommends that where possible and appropriate, longer contracts be awarded to ensure stability so that organisations can plan and deliver sustainable services to their communities. Recommendation 5 3.116 The committee recommends that the Department of the Prime Minister and Cabinet improve its overall Indigenous Advancement Strategy communication plan to ensure that all stakeholders are fully informed and have access to clear and timely information. Recommendation 6 3.117 The committee recommends that the full internal review of the Indigenous Advancement Strategy process undertaken and facilitated by the Department of the Prime Minister and Cabinet be made public. Recommendation 7 3.118 The committee recommends that the Government release the revised funding guidelines as a draft for consultation with Aboriginal and Torres Strait Islander communities and their organisations. vii Recommendation 8 3.119 The committee recommends that Government prioritise investment in capacity building and support for smaller community controlled organisations in future tender processes. Recommendation 9 3.120 The committee recommends that the Government act immediately to address the 30 June 2016 funding deadline for organisations. viii Chapter 1 Referral 1.1 On 19 March 2015, the following matters were referred to the Senate Finance and Public Administration References Committee (committee) for inquiry and report by 18 June 2015: The impact on service quality, efficiency and sustainability of recent Commonwealth Indigenous Advancement Strategy tendering processes by the Department of the Prime Minister and Cabinet, with particular regard to: (a) the extent of consultation with service providers concerning the size, scope and nature of services tendered, determination of outcomes and other elements of service and contract design; (b) the effect of the tendering timeframe and lack of notice on service collaboration, consortia and the opportunity for innovative service design and delivery; (c) the evidence base and analysis underlying program design; (d) the clarity of information provided to prospective tenderers concerning service scope and outcomes; (e) the opportunities created for innovative service design and delivery, and the extent to which this was reflected in the outcomes of the tender process; (f) the number of non-compliant projects, the nature of the non-compliance, if and how they were assisted, and how many of these were successful; (g) analysis of the types, size and structures of organisations which were successful and unsuccessful under this process; (h) the implementation and extent of compliance with Commonwealth Grant Guidelines; (i) the potential and likely impacts on service users concerning service delivery, continuity, quality and reliability; (j) the framework and measures in place, if any, to assess the impacts of these reforms on service user outcomes and service sustainability and effectiveness; (k) the information provided to tenderers about how decisions are made, feedback mechanisms for unsuccessful tender applicants, and the participation of independent experts in tender review processes to ensure fairness and transparency; (l) the impact on advocacy and policy services across the sector; (m) factors relating to the efficient and effective
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