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It is also important to ensure the desired community outcomes are achieved, reduce any unnecessary administrative burden on both parties and ensure all parties meet their obligations under the service agreement.

To effectively manage a service agreement, it is critical for you to have a collaborative relationship with the government agency. The service agreement manager is responsible for ensuring key performance indicators are met, regularly monitoring service delivery and the achievement of the desired community outcomes. Due to the length of many service agreements, a consistent, informed and proactive approach to service agreement management should be undertaken. 

Maintaining a relationship with the government agency does not mean that issues of non-compliance or under-performance cannot be discussed and acted upon. In fact, a positive relationship should assist with the effective management of service provider performance, particularly when circumstances of under-performance arise. If the channels of communication are open and working effectively, there is a greater likelihood that such issues can be discussed and resolved in a manner that is consistent with the partnership principles and behaviours of the DCSP Policy.

As a service provider it is important that you are aware of your contractual obligations, including:

• having an in-depth understanding of the service requirements and the details of your offer
• meeting any reporting, key performance indicator or meeting attendance requirements
• developing clear roles and responsibilities for those involved with managing and delivering the service agreement
• proactively managing issues, and bringing them to the attention of the government agency early
• behaving ethically and be aware of any probity and accountability requirements
• maintaining adequate insurance coverage
• providing invoices (where applicable) in an accurate and timely manner

ºÚÁÏÕýÄÜÁ¿ agencies must undertake service reviews at appropriate intervals including at the reasonable request of a service provider to assess service design and delivery, volume of services, sustainable pricing, performance and the achievement of outcomes.

A key aspect of the DCSP Policy is the mandatory application of the Indexation Policy for the Non-ºÚÁÏÕýÄÜÁ¿ Human Services Sector (Indexation Policy) for service agreements for the provision of community services by community services organisations.

Indexation contributes to maintaining stability within the community services sector, while at the same time enhancing continuity of service provision, autonomy and capacity.

Receiving formal advice three months prior to the cessation, non-renewal or substantial reduction of a service agreement allows service providers to work with government agencies to transition service users to new arrangements, where applicable, and provide a reasonable timeframe for service providers to make and implement business decisions. 

The three-month notice period commences when certainty is provided to a service provider by the government agency.

Variations can be negotiated where either party wishes to alter the original specifications or where unforeseen circumstances affect the requirements of the service agreement.

Where a service agreement needs extensive variation to remain effective, the government agency may need to re-negotiate or advertise a new Request to balance the interests of government agencies and service providers.