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Public Sector Agreement Template for Australia

An Australian Public Sector Agreement is a formal contractual arrangement that establishes and governs relationships between government entities and various stakeholders, including other government bodies, private sector organizations, or non-profit entities. This document type operates under Australian Commonwealth and State legislation, incorporating specific requirements for public sector governance, accountability, and transparency. It includes comprehensive provisions for performance standards, compliance requirements, risk management, and public sector-specific obligations while ensuring alignment with government policies and procedures.

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What is a Public Sector Agreement?

The Public Sector Agreement serves as a cornerstone document for formalizing relationships between Australian government entities and their various stakeholders. This agreement type is specifically designed to meet the unique requirements of public sector contracting, incorporating essential elements of transparency, accountability, and value for money principles. It is commonly used when government entities need to establish long-term partnerships, procure services, or create collaborative arrangements with other organizations. The document must comply with Australian Commonwealth and State legislation, including the Public Governance, Performance and Accountability Act 2013, the Public Service Act 1999, and relevant state-specific legislation. It includes detailed provisions for performance measurement, risk allocation, governance arrangements, and public sector-specific obligations, ensuring proper management of public resources and maintenance of public sector values.

What sections should be included in a Public Sector Agreement?

1. Parties: Identifies the government entity and other contracting parties, including their legal status and authority to enter into the agreement

2. Background: Outlines the context, purpose, and objectives of the agreement, including relevant public sector mandate

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles, including specific public sector terminology

4. Term and Extension: Specifies the duration of the agreement, including any extension options and conditions

5. Obligations and Responsibilities: Details the core obligations of each party, including specific public sector requirements

6. Performance Standards: Establishes required service levels, KPIs, and quality standards

7. Financial Provisions: Details payment terms, pricing, and financial accountability requirements

8. Governance and Reporting: Outlines management structure, reporting requirements, and oversight mechanisms

9. Compliance and Audit: Specifies compliance requirements, audit rights, and record-keeping obligations

10. Confidentiality and Privacy: Addresses handling of confidential information and privacy obligations

11. Risk Management: Details risk allocation and management requirements

12. Insurance and Indemnity: Specifies insurance requirements and indemnification provisions

13. Termination: Sets out termination rights, processes, and consequences

14. Dispute Resolution: Establishes procedures for resolving disputes

15. General Provisions: Includes standard boilerplate clauses adapted for public sector context

What sections are optional to include in a Public Sector Agreement?

1. Intellectual Property Rights: Required when IP creation or transfer is involved in the agreement

2. Security Requirements: Needed when dealing with sensitive information or secure facilities

3. Business Continuity: Important for critical services or high-risk arrangements

4. Indigenous Participation: Required when implementing Indigenous procurement policies or engagement

5. Environmental Requirements: Needed when environmental impacts or sustainability are relevant

6. Local Content: Used when local industry participation is a requirement

7. Transition Arrangements: Required for complex services or when replacing existing arrangements

8. Force Majeure: Important for long-term or high-value agreements

9. Change Management: Needed for complex or long-term arrangements requiring flexibility

What schedules should be included in a Public Sector Agreement?

1. Schedule 1 - Statement of Requirements: Detailed specifications of services or deliverables

2. Schedule 2 - Pricing and Payment: Detailed pricing structures, payment mechanisms, and financial arrangements

3. Schedule 3 - Key Performance Indicators: Detailed performance measures and assessment criteria

4. Schedule 4 - Governance Framework: Detailed governance arrangements and reporting requirements

5. Schedule 5 - Personnel and Key Staff: Details of key personnel, qualifications, and security requirements

6. Schedule 6 - Insurance Requirements: Specific insurance requirements and certificates

7. Schedule 7 - Compliance Requirements: Detailed compliance obligations and reporting requirements

8. Appendix A - Form of Performance Report: Template for performance reporting

9. Appendix B - Security Requirements: Detailed security protocols and requirements

10. Appendix C - Deed of Confidentiality: Template for confidentiality agreements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok˰ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

tiktok˰

Document Type

Service Agreement

Sector

Cost

Free to use

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