WACOSS Update for the Community Services Sector

Already in 2011, some important work has been undertaken to progress the implementation of the Government's Economic Audit reform agenda and the way it engages with the community sector.

The focus of this work has been working towards resolving the funding shortfall to ensure that community sector services are sustainable and to build the capacity of the community service sector to deliver services to those Western Australians most disadvantaged in our community.

In this update we provide a summary of progress in recent months and seek expressions of interest from the community services sector to participate in the development of next stages of the procurement reform processes.

The Fourth Partnership Forum Meeting 22 February 2011

The Partnership Forum met for its fourth meeting on 22 February and discussed a number of important issues including the Procurement and Community Sector Funding (the draft Collaboration for Community Policy) the Social Innovation Grants Program (selection process), the Community Development Investment Fund, Consumer Engagement, Partnership Forum Forward Planning and governance and secretariat arrangements for 2011. The Forum also discussed the key strategic issues for 2011 and the preparation of a Partnership Report to the Premier.

The Partnership Forum communiqué will be released shortly and can be found on:

The Department of Premier and Cabinet website at:
http://www.dpc.wa.gov.au/Publications/EconomicAuditReport/Pages/PartnershipForum.aspx

The WACOSS website at: www.wacoss.org.au/home.aspx

Partnership Forum Debrief 23 February 2011

Immediately following the Fourth Partnership Forum Meeting, WACOSS hosted a Partnership Forum Debrief to provide feedback to the sector on key EAC issues.

All community sector members of the Partnership Forum attended the event while Government members were represented by Director Generals, Peter Conran, Department of Premier and Cabinet, Graeme Searle, General, Department of Housing and Terry Murphy, Department for Child Protection.

Over 220 people attended the event representing sector organisations and government. The event was video-taped and distributed to 107 regional community centres throughout WA.

Peter Conran, Director General, Department of Premier and Cabinet provided an overview of the Partnership Forum meeting and future directions. Sue Ash, CEO, WACOSS also provided feedback on these issues from a community sector perspective focussing on Procurement and Community Sector Funding, Consumer Engagement and Priority issues.

Eddie Bartnik, Commissioner, (Mental Health Commission) and Ian Carter, (Anglicare)
discussed the Social Innovation Grants Program while Ron Chalmers, (Director General, Disability Services Commission) and Chris Hall, (MercyCare) provide comment around the proposed Community for Collaboration Policy.

A panel comprising of Partnership Forum members responded to audience questions around key issues including those related to the review of community sector funding and the funding gap, the procurement reform process, the establishment of the Social Innovation Grants Program and consumer engagement issues.

Update on Addressing the Funding Shortfall

Issues relating to addressing the funding shortfall for community services was a key focus of the November Partnership Forum, and an update was discussed briefly at the Community Sector Debrief following the February meeting.

In November, the Partnership Forum agreed the funding shortfall is broadly within the range of 20% to 30% and that this would be included in the advice to the Premier.

The Partnership Forum agreed that the shortfall should be addressed in two stages:
- a one-off price adjustment to be paid to all community sector organisations; and
- a provisional sum to be rolled out progressively within a procurement reform agenda with the aim of achieving a mature, sustainable funding and contracting relationship between the public sector and community sector.
Options for implementing an approach to address the funding shortfall were canvassed and it was agreed that a governance process to address the shortfall would need to be developed as a priority and linked to the procurement reforms.

The Western Australian Council of Social Service and the community services sector are continuing to work collaboratively with the State Government to address the sustainability of funding for community services in Western Australia.

The Council met with the Premier to discuss these important issues on 22 December 2010, and has welcomed the level of interest and support for the community services sector that has been demonstrated by the State Government.

There is strong commitment to achieve a resolution to the shortfall in funding for current contracts this financial year and to ensure the sustainability of services into the future.

WACOSS has indicated to Government that it remains deeply concerned that the current funding and contracting arrangements for community services are not sustainable. This has led to an erosion of the pay and conditions of the community sector's workforce, and its capacity to meet the needs of Western Australia's most vulnerable and disadvantaged people.

The three key areas of concerns relate to the quantum, allocation and timing of funding to address the current shortfall.

The community sector maintains its strongly held position that the Government should meet the full 30% of the funding shortfall.

Encouragingly, the Government has indicated support for resolving the funding gap issue as a priority in the next State Budget.

The State Treasurer, Christian Porter stated in the Sunday Times 19 March 2011 that "We want them (not-for-profit organisations) to have a greater role in service delivery, but what we are saying is that the first step, leaving aside an increase in their role, is making sure that what they are doing at the moment is fairly recognised in comparison to similar services the Government delivers."

"What we are doing is looking at the individual contracts and making sure not-for-profit organisations are receiving fair contract fees for providing those services."

Community Sector Procurement Reform

Over 150 community organisations and government representatives attended the Community Sector Procurement Reform Forum hosted by WACOSS on 17 February.

Guest Speaker at the Forum, Simone Spencer, (Director – Economic Audit Implementation from the Department of Treasury and Finance), provided information about the procurement reform process and specifically the proposed funding policy which aims to achieve better outcomes for Western Australians, by facilitating a genuine partnership between Government and not‐for‐profit organisations.

Simone discussed the work of the Procurement in Partnership Working Group, a joint public and community sector working group established to reform the contract process by replacing the Funding and Purchasing Community Services policy with a new Collaboration for Community Policy. Key components of the draft policy were outlined as well as intended benefits such as promoting flexibility, innovation and community responsiveness in the funding and contracting of services; encouraging a more productive working relationship between Government and NFP's based on trust, collaboration, accountability and effective and sustainable service delivery; reducing "red tape", complexities and inconsistencies, and standardising terminology to clarify the dialogue between the parties; ensuring Government agencies contract with NFP's in a manner that reflects the true cost of delivering the services, supports sustainable service delivery and recognises the importance of ongoing organisational viability; and clarifying when services are to be put out to open tender and when a more targeted nonmarket based approach is more appropriate.

The event was also videotaped and distributed to 107 regional community centres throughout WA.

Click here for a copy of the DTF power point presentation (17 February 2011).

Partnership Forum and Procurement Reform

The Partnership Forum broadly endorsed the Collaboration for Community Policy (which has been proposed to be retitled the Delivering Community Services in Partnership Policy) and the strategic directions of procurement reform with strong support for the three key components of the strategy:
1. Strengthening the Nature of the Relationship - involving the community and public sector in strategic planning and service design to meet the needs of the community.
2. Developing flexible Contracting Options - clarifying the appropriate types of contracting options for different services and procurement arrangements, including direct negotiation, preferred service providers and open tenders.
3. Reducing the Administrative Burden by applying consistent practice in contracting, including standard templates, indexation and reduced reporting burdens.

The Forum indicated that it was important for the policy to address critical issues such as: providing a consistent requirement to pay indexation according to State Government policy; a policy that allows surpluses to be retained where services are delivered to the quality and quantity of the contract and to prohibit claw back of surpluses in that context; and contract specifications that do not dictate staffing and salaries.

Governance of Implementation of the Funding and Procurement Reforms

It was agreed that a Partnership Forum Working Group will meet regularly out of session to develop an overarching governance framework to guide the rollout and implementation of funding to address the current shortfall and the new procurement policy.

The Working Group will prepare advice for the Partnership Forum on governance arrangements and technical aspects of the rollout, including transitionary arrangements for current contracts and those due to expire or for renewal.

This will inform decisions of the Partnership Forum about the implementation of the policy and how the procurement reforms will relate to the rollout of funding to address the shortfall in funding in current contracts.

Procurement Reform Process – Sector Engagement and Call for Expressions of Interest

WACOSS is working with the Department of Premier and Cabinet and Department of Treasury and Finance to ensure broad opportunities for meaningful engagement of the community services sector in the next stages of development of the procurement reforms.

The next critical step is the development of 'Practice Guides' to oversee the implementation of the new procurement policy.

The 'Practice Guides' will be developed through a series of three upcoming workshops, together with broader input from the sector through a series of other forums and briefings.

WACOSS is calling for expressions of interests from suitably skilled and interested representatives to participate in the workshops. We are seeking to ensure the workshop participants reflect the diversity of the sector in relation to size, location and service type. Those selected will need to be available on the dates outlined below, and will have the opportunity to be briefed in detail about the process of developing the policy up til now and the next steps going forward. All those who express interest will have an opportunity to participate in a briefing.

Materials prepared for the workshops will be distributed widely throughout the sector following each event. Please keep an eye out on the WACOSS website and through our electronic updates.

To express your interest, please email Jim Vanapoulos jim@wacoss.org.au with a short summary (less than 250 words) of your suitability, including your availability, experience with funding contracts and sector representation.

Upcoming Procurement Reform Workshops

The Funding and Contracting Services Unit within the Department of Treasury and Finance, Government Procurement, is conducting a series of workshops with both public and community sector representatives to discuss the design and development of the operational guides and templates that will support the implementation of the Delivering Community Services in Partnership Policy.

The workshops give attendees an opportunity to provide comments and feedback on material circulated between and post the workshops.
1) Workshop One - 20 April 2011 – Design of Procurement Process

A workshop to explore how the policy and associated legislative requirements will shape practice and how procurement tools such as written quotes, open tender and direct service provider negotiations are best utilised. As such, the workshop will aim to elicit some of the decision making processes that government agencies will be required to go through in order to develop and defend their procurement strategies for particular services.

2) Workshop Two - 18 May 2011 - Standard Contract Templates and Practice Guides

A workshop to discuss the proposed procurement framework and how the development and use of standard templates, conditions and terms should be shaped to contribute to consistent procurement practice and reduce the administrative burden imposed on community sector organisations. It is proposed that the templates will cover all aspects of the procurement process, including contract planning, development and management.

It is intended that this session will focus on the development of the practice guides and associated templates, and inform discussion around day-to-day operational contracting requirements.

3) Workshop Three - 15 June 2011 – Implementation and Roll Out

It is intended that this session will focus on developing options for roll out of the procurement reforms including examining options to deal with existing contracts, those up for renewal and those continuing beyond 1 July 2011.

Previous Workshop Presentation – 16 March 2011 – Policy and Legislative Environment

At this workshop, the Funding and Contracting Services Unit was introduced and its role outlined.

An overview was provided of the draft Delivering Community Services in Partnership Policy (formerly Collaboration for Community Policy), and the contracting reforms underpinning the new Policy.

The workshop also looked at the relationship between the Delivering Community Services in Partnership Policy, the suite of State Supply Commission policies, Australia's free trade obligations, the anti-competitive requirements of the Competition and Consumer Act 2010 and existing partial exemption requirements under the State Supply Commission Act 1991.

There was discussion around opportunities for improving the procurement process through better contract planning, contract development and contract management practices, and aim to reduce the administrative burden currently imposed on community sector organisations.

Workshop attendees were asked to share workshop information across their sector and provide feedback as the guides and templates are developed.

The PowerPoint presentation from this workshop was distributed to workshop attendees.

Click here for a copy of the presentation from the 16 March workshop.

Procurement Reform Forum for Small Organisations

WACOSS will be hosting a dedicated forum together with Department of Treasury and Finance and Department of Premier and Cabinet to provide a briefing for small organisations about procurement reform.

This will be an important opportunity for small organisations to consider the particular issues that they face and the specific benefits and challenges of the reform for them.

We aim to hold this event in early May – please keep an eye on the WACOSS website and updates for further details when they are confirmed.

Procurement Reform Forums for Regional Organisations

WACOSS has been seeking to keep regional organisations informed of these processes through electronic updates, and video briefings.

We are now planning a series of forums in regional areas in June to enhance engagement with regional organisations.

This will be an important opportunity for regional organisations to consider the particular issues that they face and the specific benefits and challenges of the reform for them.

We anticipate providing this briefing in June – please keep an eye on the WACOSS website and updates for further details when they are confirmed.

Procurement Issues - Contact Details

The Department of Treasury contact person for comments and questions about the Procurement Workshops and Delivering Community Services in Partnership Policy is:

Kylie Towie, Department of Treasury and Finance, Contact Number: 9222 5560
Email: kylie.towie@dtf.wa.gov.au

For further information about WACOSS's representation of the sector in these processes please contact Jim Vanopoulos, Contact Number: 9420 7222 or jim@wacoss.org.au

Social Innovation Grants

The Partnership Forum noted that there has been a high level of interest in the grants, with over seventy inquiries since they were launched.

The potential membership of the Social Innovation Grants (SIGs) Program Selection Panel was discussed by the Forum. A pool of recommendations for nomination to the Selection Panel was previously collated based on recommendations from the Community Building Steering Group and the Partnership Forum. The Forum considered recommendations for nomination to the Selection Panel in terms of broad categories including innovation, business, entrepreneurship, consumer, community sector not-for-profit organisations and commercial organisations.

It was accepted that the final membership would be determined by the acceptance of nominated individuals. Accordingly the Forum agreed on six nominees to be contacted, whom it is believed would add value to the Selection Panel.

The Forum noted that applications for the first round of grants close on 31 March 2011 and it is anticipated that the SIGs Selection Panel will submit its first recommendations to the Premier in May 2011,

Community Development Investment Fund

The Partnership Forum is continuing to discuss options for supporting the investment and development of social enterprise in WA. There are a number of complex challenges in implementing a loan scheme.

The implementation options for the Community Development Investment Fund are being explored in consideration of how similar low-interest loans programs operate in other jurisdictions and internationally. The Chair briefed the Forum accordingly on two similar projects being conducted in Australia. The first of these is the Commonwealth Government initiative called the Social Enterprise Development and Investments Fund (SEDIF). The SEDIF model allows the Commonwealth Government to shift from traditional grant making and government funding towards approaches that can improve access to capital for social purpose organisations. The second project is the NSW initiative, Social Impact Bonds. The Centre for Social Impact has provided formal advice for this initiative.

The Forum discussed the way forward for the proposed Community Development Investment Fund. It was agreed that it would be in the State's best interest to await the outcome of the SEDIF initiative which should be known within two months.

Consumer Engagement

The Forum agreed that consumer engagement is critical across the human service procurement reforms.

Three key aspects of consumer engagement were acknowledged, those being:
• Consumer engagement is a multi-level process built on key principles;
• There should be respectful engagement with those who need and use community services and have views about how those services should look like and how they should be delivered. These service users should be involved in terms of service design and the allocation of resources; and
• Some service users may not be willing to exercise their rights or are unable to exercise those rights due to legalities.
It was noted that discussion has taken place with service users who, at the Partnership Forum debrief in October 2010, had voiced their concerns around the level of consumer engagement, and a follow up meeting had been scheduled.

Partnership Forum Forward Planning

It is likely that the Partnership Forum will retain its current membership until the end of this calendar year and be reviewed for 2012.

The Partnership Forum will hold a half day strategic planning session about future priorities in July/August. It is intended that the Forum will hold a community sector briefing before that day to give the sector an opportunity to feed into the content of the strategic planning for the future directions of the Partnership Forum.