Government's Digital Seller Underperformance Policy now in effect

Digital sellers on government contracts are on notice now that the Digital Transformation Agency (DTA) has announced that its Digital Seller Underperformance Policy (DSUP) is now in effect. The policy introduces a mechanism for reporting and sharing confirmed cases of serious underperformance by digital sellers across government contracts.

The DSUP is designed to improve information-sharing in whole-of-government digital procurement. In effect as of 6 July 2026, the policy establishes a structured approach for identifying and recording instances of serious underperformance by sellers on major Australian Government digital contracts. It applies generally to large ($4 million and above) or strategically significant government contracts for digital products and services.

“At its core, the DSUP introduces a mechanism for capturing and sharing confirmed cases of seller serious underperformance across government through a central register,” said Simon Quarrell, Deputy Chief Executive Officer, Digital Investment Advice and Sourcing Division, DTA. “This information will be made available to agencies on a need-to-know basis when assessing sellers for future work.

“The DSUP will enable agencies to make better-informed procurement decisions. It creates greater transparency and consistency in how seller underperformance is considered across the Australian Government.”

The DSUP aims to strengthen outcomes in government digital delivery by driving accountability and safeguarding public value. Making past performance more visible encourages earlier remediation of issues and more effective contract management across major digital projects.

“Importantly, the DSUP is not intended to operate as a blacklist or to replace existing contract management processes,” Quarrell emphasised. “It complements current frameworks, maintaining agency responsibility for managing contracts.”

The policy will be periodically reviewed to ensure it remains fair, effective and responsive to market and technology changes.

Buyers can report serious underperformance to the DTA at any stage of a contract, provided they have first attempted to resolve issues directly with the seller. Reports trigger a structured, impartial assessment process. Sellers are given a fair opportunity to respond within 15 business days to provide evidence or rebuttals, ensuring procedural fairness and transparency.

The standard and guidance can be found here.

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