Targets, monitoring and accountability
This is part of the APS Strategic Commissioning Framework resources toolkit.
Targets
Agencies will set targets to bring core work back in house. This begins in June 2024 for the 2024-25 financial year. Targets will be set annually for the financial year ahead, allowing agencies to adjust to any changes in operating environment or core work.
The targets will capture an agency’s projected reductions in outsourcing of core work.
When setting targets agencies should:
- consider the agency’s core work
- look at any current outsourcing of core work
- consider the approach to bringing core work in house and how quickly that can be achieved.
- consider labour market realities to ensure targets are impactful but realistic. It is not expected that agencies will eliminate all outsourcing of core work in the first year of implementation.
Targets will specify:
- the relevant job family (for instance Accounting and Finance, Administration, Compliance and Regulation, Human Resources, ICT and digital solutions, Legal and parliamentary, Monitoring and audit, Policy, Portfolio Program and Project Management, or Trades and labour)
- the type of work you plan to bring back in house in the coming financial year (can be a description of key tasks, functions or job roles)
- why you are prioritising this change (e.g. risk/integrity/priority capability)
- expected reductions in supplier expenditure ($) broken down by type of external labour (labour hire, contractor, consultant, outsourced service provider). Please also provide corresponding reduction in external positions if possible (FTE). Agencies have discretion in how they calculate the estimated reduction in supplier expenditure. See guidance on Maintaining records below.
Agencies can set one target or many, depending on the core work they intend to prioritise and bring in house in the coming financial year – whatever makes sense for your agency. Agencies can consider phased targets that bring a proportion of a particular work type in house each year.
Agencies should be ambitious in their aspiration but realistic about what can be achieved in a 12 month period. We recognise that change will take time and agencies must continue to deliver against their priorities. Prioritisation will be important, to rebalance your workforce while continuing to deliver.
Considerations for setting targets
When setting targets agencies should consider the following.
A material and tangible impact is required
The Government has a strong expectation that agencies will reduce their spending on external labour. Targets must be meaningful, going beyond low-hanging fruit in order to drive momentum and achieve the framework’s intent.
Value is broader than dollars
Agencies must deliver measurable reductions in spending on external labour, consistent with the Government’s expectation that core work will be delivered efficiently and effectively by APS employees.
In prioritising the work that must be brought in house first, agencies should consider both the dollar value of targets and their strategic value, based on:
- Integrity and managing risk/conflict of interest
- Capability gaps/the need to break reliance on outsourcing of particular skills
- Legislated responsibilities, enduring functions, expected focus of future work
- Stability and business continuity.
Agencies should articulate the strategic value of their targets alongside dollar reductions.
Agencies must own and drive the change
The APSC has not set an overall target APS-wide. Targets are deliberately devolved to agencies, to ensure targets are fit for purpose and based on agency-specific knowledge of:
- the core work that should not be outsourced
- how quickly change can happen without creating delivery risks or impacting agency obligations under the PGPA Act 2013
- the changes that will deliver the highest material impact in the coming financial year, based on a strong and defensible rationale.
Agencies should work with the Department of Finance to continue converting external labour to ASL through the annual Budget process.
Reporting your targets
Agencies will report targets to the APSC annually and summarise them in their Corporate Plans. Targets will be reported to the Minister for the Public Service, and information on targets will be reported publicly.
Centralised reporting to the APSC
Data on agency targets will be collected via the APS Agency Survey in June-July 2024, to inform centralised monitoring and evaluation.
Agencies will receive and fill out an excel reporting template as part of the APS Agency Survey and provide information about their core work and targets for 2024-25.
Agencies will receive information about data being sought in the APS Agency Survey prior to the survey being distributed.
We expect in the first year of delivery agencies will be reviewing and adjusting internal policies, processes and systems in order to embed the framework and establish monitoring arrangements. As such, we understand that in the first year there may be limitations about the information agencies can provide. A common sense approach is recommended and reporting will allow agencies to explain progress, establishment activities and rationale.
Reporting targets in Corporate Plans
Agencies will summarise their targets in their Corporate Plan, starting from 2024-25. This will provide transparency and public accountability. This Corporate Plan content should form part of workforce capability reporting (see capability section of RMG 132 and also What to include in a corporate plan | Department of Finance for further information).
This Corporate Plan content is expected to be narrative-based and will not be as detailed as the information reported to the APSC. Agencies should include a short paragraph outlining the areas of focus (for instance the focus job families) and expected reductions in supplier expenditure. Agencies may choose to include other content in their corporate plan narrative, such as aspirations over a number of years and/or action taken to embed the framework in internal policies, processes and systems.
Example corporate plan content on targets:
In 2024-25, AGENCY A will reduce outsourcing of core work in line with the APS Strategic Commissioning Framework. Our targets for 2024-25 focus on reduced outsourcing of JOB FAMILY A and JOB FAMILY B work, with an expected reduction of $XXXX in 2024-25 in outsourcing expenditure.
Maintaining records and embedding the framework
From 1 July 2024, if agencies undertake new procurement for core work (in line with the limited circumstances) they must:
- keep a written record of the procurement which explains the type of work, job family, why it had to be outsourced and the dollar value
- ensure the contract scope includes a requirement for the supplier to transfer relevant knowledge and skills to the APS
- document the steps they will take to bring the core work back in house in a reasonable timeframe.
This information should be collected from 1 July 2024 onwards and will be requested in the framework’s progress reporting processes.
Documenting your target methodology
It is important to document the methodology and process your agency used to estimate reductions in supplier expenditure for your targets. This will depend on current outsourcing arrangements and the changes the agency intends to make. Each agency must document its methodology for estimating reductions, in order to replicate the approach when it comes time to assessing actual reductions at end of financial year.
Embedding the framework
Embedding the framework into agencies’ internal policies, systems and processes is key to ensuring agencies make and sustain the required changes. This can include updates to the agency’s workforce plan/s, changes to procurement policies and processes, updates to financial management information systems, and changes to recruitment and development policies and processes.
When bringing work in-house, remember:
- Where work is brought in-house, the merit principle must be applied to any recruitment for APS positions. Agencies need to refer to the APS Employment Principles in section 10A of the Public Service Act 1999.
- When employing people on a non-ongoing basis, be mindful of requirements under the Secure Jobs Better Pay Act_- external site in relation to fixed term contracts.
- Support any staff joining the APS from external providers. While they may have been performing a similar job, they have operated under different employment conditions
Monitoring and accountability
Progress reporting
Annual progress reporting will begin in the second half of 2025 for the 2024-25 financial year. It will be a mix of public reporting (through Annual Reports) and centralised reporting to the APSC.
The APS Commissioner will provide an annual update to the Minister for the Public Service on progress, drawing on agency reporting. Progress will be published on the APSC website.
Centralised reporting to the APSC
In the second half of 2025 the APSC will collect data from agencies on progress against their 2024-25 targets, including:
- whether each target was met
- actual reductions in supplier expenditure ($ by target, including FTE reductions where possible)
- an explanation for any targets partially met or not met
- information on any new procurement for core work in the previous financial year. This should include: type of work, job family, reasons for outsourcing, dollar value, knowledge transfer requirements, and the steps you will take to bring the work back in house over time.
Annual reports
A summary of progress against targets should be included in each agency’s annual report from 2025. This is expected to be in narrative format, including information on the extent to which targets were achieved and the corresponding reductions in supplier expenditure. An indicative data collection timeline is below, setting out expected dates for target setting and progress reporting.
Reporting timeline
Establishment period (2024)
- 30 June 2024 - Agencies identify core work and set targets
- Internal
- June-July 2024 - Agency Survey
- Detailed information on core work and agency targets provided to APSC
- 31 August 2024 - Corporate plan – Summary of targets published
- High-level information on targets (job families and expected reductions in supplier expenditure)
- October 2024 - Annual reports
- No reporting required for Strategic Commissioning Framework, as targets begin 2024-25.
- Late 2024 – APS Commissioner reports to Minister for the Public Service on progress and public update on implementation
- 2024 update will focus on targets for 2024-25
Implementation period (2024-25 to 2026-27)
- Progress reporting will commence second half of 2025. Agencies will receive details in advance.