Review supports retention of Single Seller Arrangements

The Digital Transformation Agency (DTA) has said that an independent review into the Single Seller Arrangements has found the arrangements continue to deliver significant value for money for the Australian Government.

The DTA has released the strategic review of the whole of Australian Government single seller arrangements which examined the single seller arrangements (SSAs) across a five-year period from 2019 to 2024. The review reaffirmed these contracting frameworks are fit for purpose and remain an effective way for government to leverage its collective buying power to provide value for money outcomes. Over this period, the SSAs secured discounts of more than $1.6 billion for the Australian Government.

The review was conducted by SolsticeIT, an information technology consultant and Small to Medium Enterprise (SME).

“Single Seller Arrangements provide agencies with flexibility and a range of benefits — such as competitive pricing, robust protections, and standardised contracting mechanisms, while securing value for money outcomes for the Australian Government,” said Nicole Bain, Branch Head of Whole-of-Government Contracts at the DTA. “However, it is important to reiterate that agencies remain responsible in determining their value for money outcome, in line with the Australian Government’s Commonwealth Procurement Rules, before using these contracting arrangements.”

Of note, 99% of Australian public servants surveyed across multiple government agencies as part of the review, indicated they would like SSAs to be retained. International jurisdictions also either expressed interest in the model or confirmed they have similar arrangements in place.

Opportunities to strengthen SSAs

The review highlighted five recommendations to strengthen the effectiveness of the SSAs.

1. Strengthening the foundations

Buyers have consistently called for simplification of pricing structures and contractual terms to improve efficiency, transparency, and ease of use. The review highlights the importance of introducing clearer cyber and sovereignty requirements to strengthen protections and maintain confidence in the SSA model, as well as refining terminology and policy settings to ensure greater consistency in their use across government.

2. Expanding the use of SSAs as a contracting framework

The review recommends publishing principles to guide the consideration and potential establishment for future SSAs, including a framework for adding or removing sellers, which will ensure the digital procurement ecosystem remains fit for purpose and continues to support the government in its digital transformation agenda.

3. Proactively leveraging SSAs to support the growth of the Australian technology sector

The review pinpoints recommendations on how to leverage the SSAs to enable broader outcomes for Australian technology industry. This includes improving the use of Commonwealth Industry Participation Plans and the Skills Guarantee targets to support local capability development, skill growth and domestic investment.

4. Enhancing transparency and information availability

The review identifies opportunities for clearer communication and reporting of SSA use. Improved reporting and transparency will maximise the value of SSAs by enabling better monitoring of contract spend, utilisation and performance.

5. Strengthening SSA management and strategic insight

The review recommends uplifting existing SSA management by leveraging existing DTA capability to deliver a coordinated, end-to-end approach aligned to the SSA lifecycle. Improved visibility of products and services actively procured under SSAs, through analysis of invoicing data, will support more informed negotiations, better planning, and stronger alignment with agency needs.

Next steps

“We will be leveraging these insights to ensure Single Seller Arrangements evolve in line with government priorities,” Bain said. “This work will help agencies continue to access value for money outcomes, stronger protections and consistent terms.”

Explore the full strategic review of the whole of Australian Government single seller arrangements here.

Image credit: iStock.com/Galeanu Mihai