Job Services Australia—Employment Services Deeds and the tender process

15.26 JSA and DES delivery is provided by contracted employment service providers. JSA and DES providers are currently contracted under Employment Services Deeds. ‘Different versions of the Deed were prepared to reflect the different combination of services’.^[15]

15.27 The current Deeds for JSA expire on 30 June 2012, however the Deed provides the Government with the ability to extend them. As part of the 2011–12 Budget, and then in June 2011, the Government announced that:

The procurement methodology for Job Services Australia 2012 – 2015 [and Disability Employment Services 2012 – 2015] will be a mix of contract extensions, business reallocation, and open tender processes available to existing providers and prospective new providers. This mix is designed to maintain the stability of the current model, while ensuring the highest quality employment services for job seekers.^[16]

15.28 In June 2011, the Government released two Industry Information Papers containing information regarding the purchasing arrangements for JSA and DES from 1 July 2012. The Government also indicated it will release a second DES Industry Information Paper in October 2011 with further information on the tender, an Exposure Draft of a Request for Tender in February 2012 and a final Request for Tender in May 2012.^[17]

ALRC’s views

15.29 Concerns have been raised about the structure and operation of the JSA system. In particular, there was concern about the way in which DEEWR monitors provider performance and outcomes as well as the fee structure—to the extent that it provides financial incentives to place certain job seekers. These systemic issues extend beyond the scope of the Terms of Reference for this Inquiry.

15.30 However, to the extent that the ALRC can consider ways in which JSA and DES providers could be required to account for the needs of job seekers experiencing family violence, the ALRC considers that the upcoming Business Review and tender processes may provide avenues through which the Government could require providers to consider and address family violence-related issues in this area.

15.31 The ALRC welcomes stakeholder comment on whether the Government should include a requirement that JSA and DES providers demonstrate an understanding of, and systems and policies to address, the needs of job seekers experiencing family violence in requests for tender and contracts for employment services, and if so how.