Standard contracts and guidelines

Consistent use of key terms and conditions uniform to all contracts can save time and money, and allow an agency to focus on negotiating schedules that detail the service to be provided.

Contracting allows government agencies to fund external parties to deliver products and services on their behalf. It is important that government agencies have quality-focused processes for contestable purchasing and contracting that emphasise improved outcomes for clients and stakeholders.

Policy and procedure guidelines are essential in an environment where funding is highly contestable (ie, a large number of providers submit proposals to run programmes).

Guidelines that set out clear, quality procedures help:

• engender good practice
• minimise bad practice
• ensure fair treatment of funded agencies
• enhance decision-making.

Basic principles include:

• being clear about the service being purchased
• making sure all prospective applicants hear about the funding and get to submit proposals
• evaluating all proposals
• making sure the best provider is contracted
• using guidelines for negotiating with prospective contractors
• using guidelines for managing the contract once it has been signed.

All agencies need monitoring checks in place to ensure staff follow set policies and procedures.

Treasury has published guidelines to encourage better contracting practices by government agencies involved in funding Non-Government Organisations.

As a first step, the agency should define what it is purchasing and funding – whether that is a service or something else.

The Ministry of Social Development's Guidelines for Social Service Contracting provides staff with detailed guidance on each stage of the decision-making process.