Commissioning ultimately influences investment.
There are a range of ways government invests in the human services system:
- A direct grant – government will approach specific providers for specialist services for which there is not a competitive market
- A select grant or tender – government will approach a small set of providers for specialist services for which there is not a competitive market
- An open grant or tender – government will provide a public market opportunity for providers seeking to deliver the specified services.
In considering a direct, select or an open methodology here are some of the factors considered:
- how best we can meet the needs of clients;
- the impact on clients of potential interruption to service provision;
- the size of the organisations and the type of services they provide;
- value of the funding; and
- government risks.
Regardless of whether a direct, select or open approach is used, organisations will be required to apply for future funding and be assessed as meeting the criteria for funding. This provides an opportunity to:
- review and reset service models to meet current and future needs;
- respond to the gaps and barriers identified during the commissioning engagement phase;
- contribute to a more integrated service system;
- ensure a sustainable, vibrant and diverse sector; and
- ensure that government and the sector fulfill legislative and community expectations to achieve economies of scale and value for money.
Commissioners recognise that applying for funding takes up time and resources, and intends to work with organisations, particularly smaller entities, to support their participation in the process.
Page updated: 28 Feb 2024
