Core work

The Strategic Commissioning Framework is a principles-based APS policy document that supports agencies to prioritise APS employment, strengthen APS capability and reduce reliance on consultants, contractors and labour hire. Under the framework, agencies must move away from outsourcing work that is the core role of the APS or the agency. Some work is considered core APS-wide, while other work will be defined as core at an agency level.

APS-wide core work

APS-wide, there are core tasks and functions that must be done by the APS and must not be outsourced to an external workforce. These include:

• developing cabinet submissions, once they are in a Cabinet classified environment
• drafting cabinet submission recommendations at any stage of policy development
• drafting legislation and regulation
• leading policy formulation
• roles that are on an agency’s executive team.

Other core APS functions should be brought back in-house as a priority, noting arrangements may take time to adjust. These include:

• undertaking procurement and managing contracts
• undertaking standard cost benefit analysis (excluding major capital, infrastructure, complex IT and secure assets such as defence)
• delivering programs and managing grants.

Core work for your agency

Each agency must determine what it considers core work (and will therefore not outsource), building on the APS-wide list above. This should inform decisions about the work to be brought back in-house and work that should not be outsourced in future. This approach gives agencies discretion to identify what is core work in their context, factoring in the agency’s expertise, responsibilities and future capability requirements.

It is expected that core work will vary between agencies. For example the core work of the Director of National Parks will be very different to the core work of the Australian Taxation Office.

You can describe core work as particular tasks, functions and/or job roles – whatever is most meaningful for your agency. Make note of both the specific work and the high level job family it best aligns to (for instance, Compliance and regulation / Policy).

The core work of your agency may change over time. Monitoring and reporting arrangements will give you opportunities to refresh your list of core work and associated targets annually.

These are the steps some agencies have taken to define their core work:

• Review the work currently outsourced to contractors, labour hire and/or consultants
• Assess which outsourced work could be considered ‘core’ and should be brought in house over time, given the list of considerations below. Make note of the relevant core work, the corresponding job families, and the money that could be saved in reduced outsourcing by bringing this work in house.
• Determine how quickly this work can be brought in house, and set targets accordingly. Consider labour market realities to ensure targets are impactful but realistic
• Reflect on other key tasks, functions or roles that should not be outsourced, given the list of considerations below, and add them to your list of core work.

If a function is not core, it falls outside the scope of the framework. For non-core work the agency can continue to use some external labour as appropriate, or can staff the function with APS employees (the latter is preferable, given direct employment is the default).

Considerations

Things to consider as you define your core work:

• integrity and managing risk/conflict of interest – what work is best done by public servants?
• capability gaps – do you need to break reliance on outsourcing relating to particular skills/capabilities, in order to meet future needs?
• legislated responsibilities, enduring functions, expected focus of future work
• stability and business continuity – what functions are best delivered by a stable employee base to ensure continuity of operations?
• commonality with agencies doing similar work – for instance, regulators or service deliver agencies may wish to touch base with each other as they identify their core work, to understand areas of natural alignment in what they consider ‘core’.

Core-enabling work

Not all work will be considered ‘core’. Your agency will have important and valuable functions that enable your core work, but are not identified as ‘core’ in their own right. This work can be considered core-enabling and is not core.

For instance, the APSC provides talent assessment and development support as part of its role in building capability of APS leaders. Analysis of APS leadership requirements, design of assessment and development frameworks and support for development conversations are core work for the APSC. Talent assessments are delivered in partnership with external organisational psychologists who provide objective and independent assessments of individual capability and deliver sensitive feedback in a psychologically safe manner. Delivery of the assessments is considered core-enabling (non-core)

Core-enabling work is outside the scope of the framework and some use of external labour may be appropriate.