ºÚÁÏÕýÄÜÁ¿

Minister's foreword

The McGowan ºÚÁÏÕýÄÜÁ¿ is committed to improving outcomes for all Western Australians, empowering communities and improving the lives of those most vulnerable.

To assist with this, the State ºÚÁÏÕýÄÜÁ¿ has developed the first State Commissioning Strategy (Strategy) for Community Services for Western Australia (WA). It is intended the Strategy will deliver greater cohesion between State ºÚÁÏÕýÄÜÁ¿ agencies, service providers, peak bodies, consumer advocates and end users to ensure Western Australians have the essential services they need to be well supported and live healthy and fulfilled lives.

This Strategy maps out how the State ºÚÁÏÕýÄÜÁ¿ can best continue to deliver these important services into the future by working together. It will adapt and develop over time to meet the changing needs of our community – including addressing any change in demand for these services.

When implementing the Strategy, we will take into account strategies and policies already developed for specific services including social housing, homelessness, domestic violence, out-of-home care, mental health services, youth and age-based programs that are provided to the community. As part of the Strategy, the McGowan ºÚÁÏÕýÄÜÁ¿ will consider commitments of the Aboriginal Empowerment Strategy to ensure both existing and future State ºÚÁÏÕýÄÜÁ¿ initiatives and programs contribute to better outcomes for Aboriginal people. The Strategy strongly advocates for State ºÚÁÏÕýÄÜÁ¿ agencies to work cohesively to design and deliver place-based services, particularly those in regional areas.

The McGowan ºÚÁÏÕýÄÜÁ¿ is committed to ensure there is capacity and capability in the community services sector to deliver essential services, in-particular those that currently exist and any redesigned services that will occur through commissioning. A goal of commissioning services with a longer-term vision will ensure a focus on sustainable services which comprises a diverse workforce including women, youth and Aboriginal people. A further aim of the Strategy is ensuring job security and a sustainable workforce to deliver these essential services.

I look forward to implementing this Strategy and working with you all to realise these important changes over the coming years.

Hon Dr Tony Buti MLA
Minister for Finance; Aboriginal Affairs; Racing and Gaming;
Citizenship and Multicultural Interests
JUNE 2022

Background 

A diverse range of community services are delivered by State ºÚÁÏÕýÄÜÁ¿ agencies, including social housing, homelessness, domestic violence, out-of-home care, mental health services, and services for youth, the elderly, Aboriginal and culturally and linguistically diverse (CALD) people.

This State Commissioning Strategy (Strategy) aims to change the way government delivers community services in Western Australia (WA).

The Strategy will drive to achieve a holistic and sustainable community services system through a commissioning approach. Commissioning is a strategic approach that will enable a fundamental shift in the system of managing the delivery of services, to provide better services to Western Australians that:

• meets the needs of users, at the right time and in the right place;
• are sustainable and delivered by organisations with the right staff and systems in place;
• are evidence based with robust quality standards; and
• are culturally safe and tailored to local community needs.

Purpose 

The Strategy is an aspirational document for a future we are working towards. It outlines the strategic role commissioning will play in transforming the delivery of community services in Western Australia. It provides a high-level strategic approach that includes key themes, guiding principles and initial actions to provide a platform for a driven and focused implementation period enabling positive long-term change.

In WA, community services are provided by a range of State ºÚÁÏÕýÄÜÁ¿ agencies through a variety of delivery mechanisms including services delivered by State ºÚÁÏÕýÄÜÁ¿ agencies and, non-government organisations, and Aboriginal Community Controlled Organisations (ACCOs). The current estimated spend on community services is $3.9 billion1 per annum with services ranging from statutory interventions such as out-of-home care, to early intervention and support services across multiple areas including health, mental health, justice, education and family support.

Several factors can impact the type, design and scope of services. Funding of these services can be a mix of State and Commonwealth ºÚÁÏÕýÄÜÁ¿ funding. Additionally, each service may be funded differently; statutory services are more likely to be demand-focused while others are based on different need assessments.

Often funding may be capped to address time-limited specific needs, or to trial a new initiative.

The challenge for State ºÚÁÏÕýÄÜÁ¿ is to deliver outcomes for the community that are based on the best value for investment, while ensuring that people have access to the right services when they need them to enable better community outcomes.

Non-government organisations who provide community services are contracted under the Delivering Community Services in Partnership (DCSP) Policy. An audit conducted by the Department of Finance in 2020 identified the majority of contracts established under the DCSP Policy will expire over 2021-22.

Additionally, information provided during the drafting of this Strategy indicates that many contracts established under the DCSP Policy have been in place for over 5 years (some considerably longer) without consideration of whether they remain contemporary, sustainable and appropriate and continue to meet the needs of service users.

As the COVID-19 pandemic has highlighted, the system can be flexible and dynamic where required to respond to evolving need. This Strategy aims to build on this flexibility to ensure a more agile system.

This Strategy is the first step, for both government and the community services sector, towards a better system for the people who need it the most. ºÚÁÏÕýÄÜÁ¿ acknowledges the long-term nature of the transition required from the procurement of services to commissioning and considers this strategy to be the starting point, not the solution.

Currently the delivery of community services by State ºÚÁÏÕýÄÜÁ¿ agencies is fragmented. For many years, community services have been procured in a way that is unsustainable and not best practice. State ºÚÁÏÕýÄÜÁ¿ agencies have varying capability and capacity to procure community services in line with the DCSP Policy.

Managing the current situation, including effective procurement of expiring contracts and management of existing contracts, will take a significant amount of effort for State ºÚÁÏÕýÄÜÁ¿ agencies. In addition to this, moving to a commissioning approach will be a major change for both State ºÚÁÏÕýÄÜÁ¿ agencies and the community services sector. It will take time and require capability building, governance, resources and structural change.

The Strategy aims to drive State ºÚÁÏÕýÄÜÁ¿ agencies to work together in a more cohesive, coordinated and holistic way, led by central agencies including the Departments of Finance, Treasury and the Premier and Cabinet. This will include working with the community services sector on the commissioning of place-based services that are designed in consultation with service providers, local people, and end users.

Aboriginal Community Controlled Organisations

State ºÚÁÏÕýÄÜÁ¿ agencies should focus on the delivery of services to Aboriginal people by Aboriginal people through ACCOs. This is a commitment under the Aboriginal Empowerment Strategy and the National Agreement on Closing the Gap. Key focus areas are improving State ºÚÁÏÕýÄÜÁ¿ agencies’ engagement with and support for ACCOs and facilitating ACCOs’ capacity building where required. Consideration is also required for transitional arrangements that may include overlapping service provision and timeframes. This will incur costs where current service providers and ACCOs move in and out of services to ensure an informed transition and continued service provision to service users and the wider community.

Further guidance on the commitments of the National Agreement on Closing the Gap and the Aboriginal Empowerment Strategy, as well as the actions that ºÚÁÏÕýÄÜÁ¿ agencies can take to increase their ability to work with ACCOs will be provided through the forthcoming whole of government ACCO Strategy.

Demand

There is evidence provided by Agency Commissioning Plans (ACPs) and consultation with the community services sector that there is unmet demand for some community services. Feedback received on the State Commissioning Strategy Discussion Paper (Discussion Paper) indicates some existing community services contracts currently being delivered are not sustainable. It was also identified in the ACPs for Communities and Mental Health Commission (MHC) that there is increased demand for some services and continuing to deliver services with current budgets potentially will result in a decrease in service provision due to rising costs. The Strategy commits State ºÚÁÏÕýÄÜÁ¿ agencies to review and redesign services that have been in place over long periods of time, some for a period of 20 years. Once these services are reviewed and redesigned, it’s unlikely that these services will be able to continue to be delivered at the same level for the same price due to contemporary costs of service delivery.

Outcome measurement

Further development and implementation of the State’s Outcomes Measurement Framework (OMF) for community services will provide important data to State ºÚÁÏÕýÄÜÁ¿ agencies about which services are effectively improving quality of life for the most vulnerable members of our community. The collation of data-based evidence will take time, commitment and investment. It’s not a short-term solution but is imperative for the future success of the Strategy.

A responsive system

The State ºÚÁÏÕýÄÜÁ¿ introduced the WA Recovery Plan in response to the Covid-19 pandemic. The plan invested in training opportunities improving skillsets and included the provision of free accredited short courses for people to extend transferable skills and diversify their employment opportunities. Along with a range of other areas, this included Certificates in Disability Support, Community Services, Aging Support and Financial Counselling.

As part of ongoing monitoring and enhancement of the Strategy it will be critical to determine any other areas of demand for upskilling to enable community services to be delivered with a sustainable and capable workforce. Community services are delivered by people, to people in a local area, and the Strategy contributes to the State ºÚÁÏÕýÄÜÁ¿â€™s focus on jobs for Western Australians, with a sustainable focus on employment opportunities for women who are traditionally employed in these fields across the State.

The future of community service delivery will be grounded in key principles applicable to both government and the community services sector. These principles have been identified based on research, the Independent Review Panel report and consultation with community services sector peak bodies, service providers and the Aboriginal Advisory Council of WA.

A community and person-centered approach focused on outcomes

1. Prioritise outcomes for service users through community and person centered and outcomes focused commissioning that delivers social value at an individual and population level.
2. Plan and design integrated and place-based services, with a focus on moving from prevention to early intervention.

A sustainable system

1. Commission sustainable services, at a fair and appropriate price that deliver value.
2. Develop a competent workforce of commissioners and service providers with necessary capability and capacity.
3. Drive continuous improvement of the system through strengthened monitoring, evaluation and review of services and outcomes.

Inclusive services - focus on Aboriginal outcomes and partnerships

1. Services are co-designed and locally led.
2. Engagement is led and informed by Aboriginal, Culturally and Linguistically Diverse
3. (CALD) communities and other priority groups, ensuring needs are recognised within government strategies at a whole of system level.
4. Prioritise Aboriginal empowerment in the delivery of outcomes for Aboriginal people, organisations and communities.

Well-led, supported and transparent system

1. Work to establish a whole-of-system approach with clear roles, responsibilities and mechanisms for central oversight and system accountability.
2. Develop a quality evidence-base to support fair and transparent decision-making.

To achieve this we will: 

1. Prioritise outcomes for service users through community and person centered and outcomes focused commissioning that delivers social value at an individual and population level. 
2. Plan and design integrated and place-based services, with a focus on moving from prevention to early intervention.

To achieve this we will: 

1. Commission sustainable services, at a fair and appropriate price that deliver value.
2. Develop a competent workforce of commissioners and service providers with necessary capability and capacity.
3. Drive continuous improvement of the system through strengthened monitoring, evaluation and review of services and outcomes.

To achieve this we will: 

1. Services are co-designed and locally led.
2. Engagement is led and informed by Aboriginal, Culturally and Linguistically Diverse (CALD) communities and other priority groups, ensuring needs are recognised within government strategies at a whole of system level.
3. Prioritise Aboriginal empowerment in the delivery of outcomes for Aboriginal people, organisations and communities.

To achieve this, we will:

1. Work to establish a whole-of-system approach with clear roles, responsibilities and mechanisms for central oversight and system accountability.
2. Develop a quality evidence- base to support fair and transparent decision-making.

As part of the development of the Strategy, State ºÚÁÏÕýÄÜÁ¿ agencies responsible for delivery of community services developed initial ACPs. ACPs outlined how agencies intend to commission going forward, with an initial focus on expiring contracts.

An independent review panel (IRP) assessed ACPs of the Departments of Communities, Health and Justice and MHC providing valuable feedback and recommendations that have further supported and informed the ACPs and the Strategy. The information contained within these ACPs has provided a base line to inform the development of this Strategy and its Implementation Plan.

Each agency’s ACP will be a living document, reviewed and updated annually, to assist agencies in their commissioning.

Key considerations for the development of the ACPs included:

• strategic planning for community services
• schedule for proposed commissioning processes
• commissioning enablers and barriers
• prioritising Aboriginal people and organisations, and
• budget and demand considerations.

Findings from the initial Agency Commissioning Plans

The ACPs submitted to central agencies initially in 2021 demonstrated an inconsistent understanding of commissioning and varying degrees of commitment to shift the dial and changing the way these services are designed. A review of the first iteration of ACPs identified:

• Lack of clear roles and responsibilities to adopt a strategic approach to commissioning community services
• Limited capability and capacity
• Lack of strategies to identify and address funding shortfalls
• Limited definition of and measurement of outcomes
• Very limited identification of place based and regional service design and delivery
• Limited commitment to undertaking effective co-design in a planned way, and
• Lack of clarity of achieving sustainable services.

Although the initial ACPs indicate there is work to be done, State ºÚÁÏÕýÄÜÁ¿ agencies are currently undergoing various levels of consultation with the community services sector, which will result in updates to their ACPs.

Further detail on the role of these ACPs in the ongoing implementation of the Strategy is covered in the Implementation section as well as the Strategy’s Implementation Plan.

Community services priority areas

Homelessness

Department of Communities (Communities) delivers a range of specialist homelessness services that assist families, women and children affected by family and domestic violence, young people and single adults. This includes crisis and transitional accommodation, outreach, and housing and tenancy support workers.

Family and domestic violence (FDV)

Family violence is a significant issue in the community impacting the health, mental health, safety and wellbeing of Western Australian children, families and communities. Communities provides a range of complex interventions focused on protecting victims of family and domestic violence and stopping or changing the behavior of perpetrators.

Out-of-home care (OoHC)

Communities is required by statute to provide child protection services which includes protecting children and young people from abuse and neglect; supporting families and individuals who are at risk or in crisis; and enabling children and young people in care to live in safe, stable and nurturing environments and supporting them to achieve good life outcomes.

Mental health

The Mental Health Commission (MHC) is responsible for delivering mental health and drug and alcohol services to the community. The community services sector plays a key role in supporting people to live in, and contribute to, their community by providing community-based services to support recovery and rehabilitation.

Health

Department of Health focuses on ensuring the public health and wellbeing needs of WA citizens are met – particularly the most vulnerable Western Australians including children and youth, older people, Aboriginal people, and those living in regional and remote areas of WA. Initiatives include prioritising children and community health and respectful and appropriate End of Life care and choices.

Justice

The Department of Justice is focused on the continuous demand for justice support services for adults and young people in custody and the community, and the system is facing increasing complexity (including the overrepresentation of Aboriginal people, and the intersection between alcohol and other drug use, family and domestic violence and homelessness).

Aboriginal health and wellbeing

Services to address the intergenerational disadvantage faced by Aboriginal people are delivered by a range of agencies. These include those addressing health, social and emotional wellbeing and educational attainment, among others.

Many of the issues for providing community services are not new, as outlined in the Discussion Paper, and range across services delivered by both government and the community services sector.

Consultation undertaken through workshops with representatives from the community services sector and State ºÚÁÏÕýÄÜÁ¿ agencies and written responses to the Discussion Paper identified the following key themes.

Co-design

• Service-user voice
• Culturally appropriate
• Sufficient time and resources for State ºÚÁÏÕýÄÜÁ¿ agencies

Capability building

• Commissioning
• Co-design
• Role of peak bodies in building provider capability

Sustainability

• Sustainable funding for services
• Workforce attraction and retention
• Longer contract terms

Aboriginal empowerment and self-determination

• Aboriginal led decision making
• Engaging more ACCOs
• ACCO business development

Outcomes measurement

• Implementation of outcomes measurement framework
• Centralised reporting
• Ability to measure long-term outcomes

Evidence-based service models and data

• Use of pilot programs to trial services
• Enable data sharing
• Monitor and evaluate meaningful data

Contract flexibility

• Adaptability to meeting changing service user needs and demographics
• Opportunities for innovation

Governance, accountability and transparency

• Clear delineation of responsibilities
• Alignment of whole-of-government priorities
• Accountability mechanisms for government
• Transparency in service design, delivery and review

Building on the long-held relationship with the community services sector, the Strategy responds to these issues in the system and outlines the intentions of government to further address these. The Strategy outlines the first steps and will be updated over its life. It’s expected that real change will take time and government will continue to consult with the community services sector and State agencies to ensure the approach to commissioning drives change in the delivery of sustainable services that meet user needs.

Commissioning is a strategic approach to the delivery of community services. It puts service users at the heart of the approach to look beyond procurement of services and focus on longer-term outcomes for individuals and the community.

The Strategy reflects a shift away from the purchasing of services to a more holistic, proactive and sustainable commissioning approach.

Under a commissioning model, the appropriate response to a given issue might not be additional services or recontracting existing service delivery. It might involve system changes, service redesign, funding reallocation to areas of greater need, or change in provider type.

The benefits of commissioning include:

Improved service design and delivery - commissioning represents a collaborative approach to developing services in partnership with service users and service providers through better relationships and new ways of working.

System-wide approach - commissioning is broader than procurement or contracting, encompassing the end-to-end policy and delivery cycle.

Building capability across the system - each ‘round’ of the commissioning cycle represents a variety of opportunities to make changes to the system and build the capability of government and non-government stakeholders within the system.

Diverse commissioning approaches - there are a wide range of governance, procurement and funding options that can be used to commission services.

The Commissioning Cycle

Strategic commissioning on its own will not deliver benefits. It’s about a different way of thinking and working together to translate community priorities and government strategies into services that support better outcomes for Western Australians.

The DCSP Policy reflects many elements of a strategic commissioning approach. It will remain a key tool in implementing the Strategy, and guiding commissioning with the community services sector.

To date, a coherent approach to strategic commissioning of community services has not been implemented across State ºÚÁÏÕýÄÜÁ¿. The development of the Strategy provides an opportunity for a more coordinated and system-wide approach to the delivery of community services across the diverse portfolio of community services in WA.

All parties in the system have an important part to play in improving the commissioning of community services. By working together, we need to understand the different roles each party will play and the benefits that can be expected.

For commissioning, this means recognising when government is best placed to deliver a service, and when other organisations in the community services sector, including ACCOs are more appropriate to achieve intended community outcomes.

State ºÚÁÏÕýÄÜÁ¿, the community services sector, service users, and the community will realise different benefits from the Strategy.

The transition to commissioning is not a short-term process, and implementation of the Strategy is intended to be iterative and continuous over the next five years.

An initial Implementation Plan (the Plan) has been developed and released with this Strategy. The purpose of the Plan is to set out priorities, actions and responsibilities for the first two years, to establish a solid foundation for ongoing implementation over the five-year term of the Strategy

The Plan will be continually revised and updated over the term of the Strategy. The Implementation Plan includes a road map for the first two years detailing key activities.

Successfully transitioning to commissioning will take time and will require the development of skills, capabilities, and new ways of working together. Key enablers have been identified to support effective implementation.

Agency commissioning plans

Annual ACPs will be introduced as a mechanism to clearly communicate with the sector and government how State ºÚÁÏÕýÄÜÁ¿ agencies are driving change at a departmental and individual service or program level.

Commissioning scheduling will be published to enable planning, and to assess capability and capacity for both State ºÚÁÏÕýÄÜÁ¿ agencies and the community services sector.

Governance, accountability and processes

Cross sector governance options will be developed to ensure a clear structure for implementation planning and delivery.

Rigorous governance mechanisms will be developed to ensure government is transparent and accountable to its commitments to commissioning under the Strategy, ACPs, WA Procurement Rules and the DCSP Policy.

Capability and capacity

Capability of both State agencies and the sector will need to be developed as the transition to commissioning is progressed.

The implementation plan will develop options to enable:

• Central support options and resources.
• Public sector capability and capacity.
• Longer term planning for agencies
• Targeted support for the community services sector.
• Clarity of the peak bodies role in support of community services sector members.

Data and outcomes

Evidenced based decisions are key to successful commissioning. This includes evaluation and design of services.

Data collection must be robust and fit for purpose in order to understand whether outcomes are being met. Appropriate infrastructure must also be available to facilitate effective and efficient sharing of data while adhering to privacy and other policy requirements.

Implementation of the States Outcomes Measurement Framework will be undertaken to support the Strategy.