Contracting out of Government Services Second Report

Table of Contents

APPENDIX A

Inquiry into contracting out of government services

Referred 4 November 1996

The Finance and Public Administration References Committee, noting the necessity for public accountability of all government services provided by private contractors, will examine:

(a) How best to ensure that the rights, interests and responsibilities of consumers, contracted service providers and government agencies can be defined and protected; particularly

(i) whether contracting out arrangements should be governed by written contracts between the government agency and the service provider in all cases;

(ii) whether contracts should contain standard clauses dealing with matters such as responsibility for record keeping; complaints and dispute resolution procedures; allocation of responsibility between the contracting agency and the contractor in the event of financial or other loss on the part of the consumer; and

(iii) definition of standards of service.

(b) The adequacy of tendering procedures adopted by government agencies in contracting out services.

(c) Whether the jurisdiction of the Ombudsman's Act 1976 should be extended to ensure that it covers all contracted out government services.

(d) Ministerial responsibility to Parliament for contracted out services, noting that in other parliamentary systems it has been argued that, with regard to corporatised or contracted out government services, Ministerial responsibility extends only to policy issues and does not encompass questions of day-to-day management and operation.

(e) Whether government, to meet its responsibilities for policy making, should have access to all files; information etc generated by private-sector contractors in meeting their contractual obligations.

(f) Whether and to what extent claims of commercial-in-confidence should be accepted as limiting the right of Parliament to examine contractual arrangements between government agencies and service providers.

The reference was extended on 27 May 1997 as follows:

(g) All aspects of outsourcing the information technology (IT) requirements of Commonwealth departments and agencies, with particular reference to:

(i) the range of IT requirements of Commonwealth agencies;

(ii) the costs and benefits of IT outsourcing,

(iii) the privacy implications of IT outsourcing and the need for privacy protection for sensitive information held by Commonwealth agencies,

(iv) the adequacy of measures proposed to ensure public accountability for taxpayers' funds and public scrutiny of service providers,

(v) the approach being adopted by the Office of Government Information Technology to the outsourcing of IT,

(vi) the means by which opportunities for in house bids and the domestic IT industry can be maximised,

(vii) the employment implications of IT outsourcing, and

(viii) the experience of other jurisdictions with IT outsourcing and the international implications for Australia of IT outsourcing.

 

APPENDIX B

SUBMISSION LIST

Sub No. Name/Organisation

1. Mr John Mayger
2. Department of the Senate
3. Australian Law Reform Commission (2)
4. Mrs Marion Wright
5. Public Sector Management Office, WA Ministry of the Premier and Cabinet
6. Community and Public Sector Union (3)
7. Environment Industry Development Network
8. Mr Peter Boardman
9. Environment Management Industry Association of Australia Limited
10. Community Services Australia
11. Comcare Australia
12. Family Services Australia Ltd
13. Environmental Management Services Pty Ltd
14. Victorian Government
15. Employment Services Regulatory Authority (2)
16. Commonwealth Ombudsman
17. Centre for Citizenship and Human Rights, Deakin University
18. Commonwealth Scientific and Industrial Research Organisation
19. Department of Defence
20. Department of Immigration and Multicultural Affairs
21. Australian Customs Service
22. Public Sector Research Centre, UNSW
23. Australian National Audit Office (2)
24. TNT Australia
25. Department of Veterans' Affairs
26. Department of Primary Industries and Energy
27. Standards Australia
28. Australian Archives
29. Department of Employment, Education, Training and Youth Affairs
30. Aboriginal and Torres Strait Islander Commission
31. Attorney-General's Department
32. Department of Administrative Services
33. Women's Emergency Services Network, WESNET Inc.
34. Department of Finance
35. Department of Industry, Science and Tourism, Bureau of Consumer Affairs
36. Institution of Engineers, Australia
37. Department of Health and Family Services
38. Dr Nicholas Seddon
39. Ms Eileen Wood
40. Privacy Commissioner, Human Rights and Equal Opportunity Commission (2)
41. Dr Clare Burton
42. Professor Richard Mulgan
43. Australian Information Industry Association Limited
44. Ms Lyn Pysden
45. Office of Government Information Technology
46. Department of Veterans' Affairs
47. Xamax Consultancy Pty Ltd
48. The Alcohol and other Drugs Council of Australia (ADCA)
49. Ms Jane Holesgrove
50. Melbourne Catholic Social Services
51. Australian Catholic Social Welfare Commission
52. Dr Edward Lewis, Australian Defence Force Academy
53. Records Management Association of Australia
54. Social Justice Committee of the Anglican Diocese of Canberra and Goulburn

 

APPENDIX C

PUBLIC HEARINGS PROGRAM

3 April 1997 - Canberra Australian National Audit Office Department of Employment, Education Training and Youth Affairs Department of Finance Department of Industry, Science and Tourism Public Sector Research Centre, University of New South Wales 4 April 1997 - Canberra Commonwealth Ombudsman Department of Administrative Services Department of Immigration and Multicultural Affairs Evans, Mr Harry, Clerk of the Senate 16 May 1997 - Canberra Administrative Review Council Attorney-General's Department Seddon, Dr Nicholas, Australian National University 19 May 1997 - Melbourne Community and Public Sector Union Drake Personnel Ltd Employment Services Regulatory Authority Freiberg, Professor Arie Hodge, Mr Graeme Industry Commission Warren, Mr Ian 20 May 1997 - Sydney Australian Law Reform Commission Environment Management Industry Association of Australia Harris, Mr Tony, NSW Auditor-General Privacy Commissioner Standards Association of Australia TNT Australia

4 July 1997 – Canberra Australian Archives Australian Bureau of Statistics Australian Customs Service Australian Information Industry Association Australian National Audit Office Australian Taxation Office Commonwealth Ombudsman's Office Community and Public Sector Union Commonwealth Scientific and Industrial Research Organisation Department of Communications and the Arts Department of Defence Department of Social Security Department of Transport and Regional Development Department of Veterans' Affairs Human Rights and Equal Opportunity Commission Office of Government Information Technology Mulgan, Professor Richard, Australian National University Public Service and Merit Protection Commission 5 September 1997 - Canberra Australian Computer Society Australian Electrical and Electronic Manufacturers' Association Department of Industry, Science and Tourism Jackson, Mr Robert, Compucat Research Lewis, Dr Edward, Australian Defence Force Academy Office of Government Information Technology Ross, Mr Geoffrey, Randata Weill, Professor Peter, University of Melbourne