Subcontracting

For our purposes, subcontracting is when a service provider uses the department’s funds to pay a third party — whether an organisation or an individual — to fulfil part or all of the services we have contracted the service provider to deliver.

These may include:

1. Where a service provider has a contract with one or more third parties to deliver all or part of the contracted services.
2. A fee-for-service arrangement, where regularly or from time to time a service provider uses purchase orders to buy services from one or more third parties to deliver all or part of the contracted services.

In a subcontracting arrangement, the third party is referred to as a ‘subcontractor’.

Is it always subcontracting when you use a third party?

No.

Here are some typical examples of circumstances that aren’t subcontracting:

• using a labor-hire company to recruit staff to become an employee
• using the department’s funds to cover ancillary costs, such as cleaning and security, when they’re required to support the running of the services you’re contracted to deliver
• hiring temporary staff or contractors for office administration or other duties that aren’t directly related to the services you’re contracted to deliver.

In all other cases, if you pay a third party to fulfil any part of your service delivery obligations under the contract with us, it is subcontracting.

This includes paying a third party to deliver health services that are within the scope of the services for a child or young person’s therapeutic care.

Emergency subcontracting arrangement

If you require an emergency or short-term subcontract arrangement contact your DCJ contract manager.

Independent Assessor

If you are a service provider contracted to undertake assessments for a child or young person in out-of-home-care and proposing to pay a third party to undertake an assessment you need to seek our consent. Follow the steps below.