Outcomes-based procurement: Govt moves on $100b innovation lever


Joseph Brookes
Senior Reporter

The federal government’s $100 billion procurement system will for the first time include guidance on outcomes-based options next year in response to value for money struggles and an opportunity to drive local innovation.

Procurement policy steward the Department of Finance is finalising APS-wide guidance on outcomes-based contracting to try and improve the delivery of 83,000 federal deals struck each year.

Rather than linking contract payment to the inputs or activities of the service, an outcomes-based approach gives suppliers more flexibility in meeting the government buyer’s desired outcome.

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