Framework principles

Agencies are required to adhere to the following principles in relation to core work.

Principle 1: Start with rigorous planning

Agency-level planning is a key enabler of this framework. Through corporate and workforce planning, agencies make decisions about their priorities, the capabilities needed to deliver them, when they are required, how long they are required and where they exist in the APS and broader labour market. These are crucial inputs as decision-makers plan their work and manage their workforce. Planning at an agency level can help manage the peaks and troughs in individual projects and the cyclic nature of policy and program delivery, avoiding decisions being made in siloes. This may include the reprioritising of work.

The principles and steps in this framework should inform agency planning at all levels in relation to core work, from the inception of new work through Budget processes to project planning for individual initiatives. This must be built into agencies’ existing policies and processes.

This principle is particularly important as agencies identify their core work, understand where and when core work is outsourced, and plan the steps required to bring core work in house over time.

Principle 2:  APS employment is the default for core work

APS employment must become the default for core work. Employees are subject to important safeguards and accountability mechanisms that do not apply to contractors and consultants,[2] helping maintain integrity of the system. 

The usual basis of engagement in the APS is as an ongoing APS employee, as per section 10A of the Public Service Act. Non-ongoing APS employment is also appropriate and is preferable to external labour (definitions are provided at the end of the framework). Be mindful of requirements under the Secure Jobs Better Pay Act in relation to fixed term contracts.

Principle 3: Use APS networks first for core work

When there is a vacancy, business need or capability gap and the work is core, decision-makers need to first consider how the core work could be performed by APS employees. Beyond recruiting employees, options include seeking advice, support or mobility (via temporary transfers or secondments) through APS networks. See Step 2 for guidance. 

Where agencies need to temporarily boost or augment their workforce for core work, non-ongoing, casuals and temporary mobility arrangements should be prioritised over labour hire or contractors. This can include reengaging former public servants with relevant expertise where appropriate and in line with the requirements of the Employment Principles.

Principle 4: Use external support in limited circumstances

Procurement of the external workforce to deliver core work is appropriate in limited circumstances such as:

• where agencies are genuinely unable to fill a capability gap through recruitment and are unable to access expertise within the APS or
• where there is a need for independent advice (for example, due to requirements in legislation or an assurance need) and it cannot be sourced from within the APS. This should be used on a one-off or limited basis.

Decision-makers must weigh up long-term costs and benefits for the APS before outsourcing core work, to avoid creating and perpetuating capability gaps. They should consider:

• the integrity benefits of the APS Values, which apply to APS employees 
• whether the need is genuinely one-off or specialist and whether it is a capability that is likely to be required by the agency in the future
• confidentiality, privacy and integrity, including conflicts of interest
• budgets and value for money 
• anticipated gain or loss of agency and APS capability
• quality and timeliness of the product, service or advice
• impacts on team culture and diversity.

Consider opportunities to work with universities, not-for-profit institutions, peak bodies or community controlled organisations, where they have relevant expertise.

Agencies and decision-makers must stay up-to-date and compliant with Commonwealth Procurement Rules (CPRs) and the principles of the PGPA Act 2013 in using public money and assessing and achieving value for money.

Principle 5: Maximise the benefits and minimise the risk of any external arrangements

Core work should be delivered by APS employees. Where a labour hire worker, contractor or consultant is procured for a core function due to extenuating circumstances (see Principle 4), the agency must also take steps to build the skills of APS staff, to avoid perpetuating capability gaps, including transfer of knowledge, capabilities and models. Agencies will also need to take steps to bring the core work back in house over time.

Risk mitigation approaches when procuring external expertise require good contract and supplier management. This also includes ensuring new contracts consider and articulate knowledge transfer requirements, managing access to sensitive information, and the conduct expected of personnel working on the project or service including upholding similar values and behaviours to those expected of APS employees in the APS Values.

Principle 6: Apply merit when converting roles

Where external roles are being converted to ongoing APS positions, the merit principle must be applied. Agencies need to refer to the APS Employment Principles in section 10A of the Public Service Act 1999.

External roles can be converted to non-ongoing positions where the need is short term.

Principle 7: Monitoring and accountability

Monitoring

Agencies must collect information on their use of the external workforce for core work and how it is reducing over time. Additionally, agencies must document their methodology to implement the framework. This includes methods and processes to:

• identify and agree core work
• reduce outsourcing of core work
• track implementation progress
• report outsourcing of core work outside limited circumstances and,
• steps taken to embed the framework and strengthening capability.

On an individual contract basis, it is important that arrangements are reviewed periodically. This is to ensure the use of the external workforce remains appropriate and efficient while ensuring it does not undermine the long term capability of the APS, in keeping with the policy intent of the framework

Agencies must report steps they are taking to embed the framework, strengthen core capability and whether they are outsourcing outside the limited circumstances.

Guidance is available on the APSC website.

Accountability

Agency heads must identify their core work each year, which job families will be the focus of reduction in outsourcing for the year ahead, and the proposed steps to embed the framework and strengthen capability. These elements of implementation must be included in agencies’ corporate plans.

Agencies are also required to report in their annual reports:

• any outsourcing of core work outside of the limited circumstances as a dollar figure
• steps taken to embed the framework and strengthen capability and
• progress against the target they set for the previous year (if applicable).

Agency specific information will also be reported to the APSC in the APS Agency Survey. A summary of agencies' reporting will be included in the State of the Service Report.