Applying the principles

The steps below outline how to apply the principles. This will be supported by a process map as part of the framework’s resources toolkit. The steps are not ‘gates’ to stifle or delay your work - they are the considerations required to make appropriate decisions in keeping with the intent of the framework.

Step 1: Define the capability you need and your core work

Define the capability you need

The starting point for resourcing a project, role or function is to identify the capability needed now and into the future. This relies on a clear understanding of the problem you are solving, the work to be done and the outcomes needed. You must also understand the depth of expertise and experience required and how long you need it. This approach needs to be built into policy development processes, particularly as part of the Budget cycle. This kind of scoping can be done quickly, particularly where foundation planning work already exists. Seek support from your corporate teams if required. The process map can support this decision making process.

This approach must be applied: 

• when there is a new position 
• when the agency is looking to convert work done by the external workforce 
• when emerging and existing priorities and/or projects need to be delivered 
• as part of whole-of-agency workforce planning and 
• periodically to existing policies, programs and unit-level workforce plans.

Agencies are encouraged to apply this approach when a role becomes vacant.

Defining core work

Agencies need to be using and strengthening core APS capability. ‘Core’ means work that should be done by APS employees, not outsourced. See the resources toolkit for further information on defining the core work of your agency.

APS-wide core work

There are core 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.

Agency level core work

In line with Principle 7, each agency must determine what it considers core work that should not be outsourced, building on the whole-of-APS list above. This should inform agency decisions about any work that should be brought back in-house and/or should not be outsourced in future.

Information on defining your agency’s core work is provided on the APSC website, including a consistent set of considerations that agencies should apply.

Step 2: Decide how to source the right capability

Using APS capability

Each agency needs to be accessing and building its expertise, by directly employing people with the right skills and/or leveraging capability across the service. This includes:

• recruiting on an ongoing or non-ongoing basis
• recruiting from a broad range of locations to access a wider range of talent 
• building employee capability through training and professional development
• promoting mobility of skilled staff across agencies to share and expand capability (for example: micro-assignments, temporary transfers or secondments)
• reengaging former public servants with relevant expertise
• using APS networks to access advice, resources and/or expertise, including through:
  • the Australian Government Consulting Specialist network
  • APS professions, centres of excellence, communities of practice 
  • expertise in non-APS agencies such Corporate Commonwealth Entities.

See the resources toolkit for practical steps and contact details.

Engaging an external workforce

There are limited circumstances where an external workforce may be appropriate for the delivery of core work. The considerations listed at Principle 4 should inform agency decisions about outsourcing core work in these limited circumstances. 

The suitability of different types of external labour will depend on the nature of the work and contextual considerations (outlined below).

In any procurement, the agency must be confident conflicts of interest can be avoided or appropriately identified and managed. 

When engaging the external workforce for core APS work, mechanisms must be in place to transfer knowledge, information and skills so there are enduring benefits to the APS. 

All external workforce arrangements must be regularly reviewed to ensure they do not risk undermining the long term capability of the APS, that they are an efficient and cost effective use of resources and that compliance with CPRs is maintained. 

When procuring external expertise, agencies must comply with the CPRs. Agencies should consider First Nations businesses in line with the Indigenous Procurement Policy, the Buy Australian Plan, and use of small to medium business in line with the CPRs. 

For core work, procuring contractors or labour hire is only appropriate if:

• APS recruitment processes have been unsuccessful or are unlikely to be successful (e.g. due to a competitive labour market) or
• there are genuine periods of high demand for staffing beyond what should be reasonably expected of an agency that are also unlikely to reoccur in future. APS employees should still be the first resort in this circumstance or
• there is a temporary need to backfill a vacancy to meet critical business needs, pending a recruitment process or while APS capability uplift is underway.

For core work, procuring consultants is only appropriate if:

• 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 or
• there is a temporary need for unique specialist, innovative, technical and in-demand skills, at a level that would be inefficient to retain internally (that is, there is not an enduring demand for the skill) or
• there is a genuinely urgent and/or unforeseen need for a skill or capability in an area that is an enduring function, and extra support is needed while capability building or recruitment processes are underway.

Before engaging a consultant, agencies should consider collaborative partnerships and networks, such as accessing expertise from Commonwealth entities, to provide access to a wider body of knowledge, perspective or technology.

Additionally, when engaging a consultant agencies should identify how the arrangement can be used to build the capability of APS staff and support knowledge/skills transfer for future use, and ensure these activities form part of the deliverables.

Procuring outsourced service providers is only appropriate if:

• the service provider is delivering a function that is not considered core work and where the service is more efficiently and cost effectively delivered by specialist service providers than by maintaining that capability in-house (for example, building cleaning, construction and security services, or delivering specialised services for Defence base personnel such as health services).

Grant recipients and third party program providers are not considered Outsourced Service Providers and are not covered by this framework.

Step 3: Access ‘how to’ guidance on the chosen approach

The framework helps agencies and employees access guidance on how to access capability based on their chosen approach. A resource toolkit is available on the APSC website, linking to existing and emerging resources on:

• scoping your workforce requirements
• defining core work
• recruitment
• drawing on expertise across the APS
• procuring external support in limited circumstances
• obtaining value from external arrangements 
• managing contracts
• capability transfer
• targets, monitoring and accountability.