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

Centralised data is key to improving our understanding of shifts in APS workforce composition. 

The Audit of Employment provides an initial benchmark of the APS’ use of all external labour in 2021-22. This framework focusses on core work which is a sub-set of all outsourcing. Agencies must collect data on their use of the external workforce for core work and how it is reducing over time, to support central monitoring of the framework’s impact. Details of central monitoring arrangements are available on the APSC website.

From 2024-25, agencies must identify and capture data on what external labour is being used for core work, the type of work involved and the reasons for outsourcing. 

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. 

Accountability

Agency heads must set targets to reduce their agency’s reliance on inappropriate outsourcing of core work. Initial targets must be in place by June 2024. Targets will be set annually and should outline which parts of the agency’s operations will be brought back in-house and the anticipated reduction in supplier expenditure on core work. Where possible, targets should specify how many external roles will be affected. This timeframe allows for sufficient planning and linkages to corporate reporting and annual planning.

• Targets must be summarised in each agency’s corporate plan from 2024-25. Information on targets will also be collected by the APSC to inform monitoring and evaluation.
• Updates on progress against the targets should be reported in the agency’s annual report. Information will also be reported to the APSC in the APS Agency Survey.
• 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.