Service types are examined every three years in a cycle that links with the Service Agreement expiry date.

Purchasing Quality Services (PQS)
A three year cycle for each service group

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The PQS strategy

Each year, beginning in November the following process starts for several services whose Service Agreements finish the following September.

1. An evaluation process examines the service specifications (the service description and agreed activities to be provided by the agency for the funding) within the current Service Agreements.  This allows the Department to see if the service activities are still relevant and meeting local community needs.  The evaluation is informed by:
   •  progress reports (which are provided by the agency to the Department every 6 months)
   •  service reviews
   •  reference to current best practice and
      consultations with identified key representative groups inclusive of service providers.
2. A local planning process to review and prioritise the local mix of services, amending service specifications as required.  
3. An assessment of the existing service provider’s suitability to be a PSP.  The assessment is based on the service provider satisfactorily meeting the following criteria:
   • continuing to meet the identified need
   • meeting the agreed service specifications, contractual requirements and set standards of delivery
   • operating efficiently and effectively and
   • actively engaging with the Department in continuously improving its services to provide the best possible service for the Department’s clients.
4. If the existing service provider meets all of the above criteria they will be invited by the Department to submit an “offer” to provide the service as a PSP.   A new three year service agreement will be signed between the PSP and the Minister’s delegate in the Department.  
5. If the criteria are not met then the service may be openly advertised through a Request for Proposal process. 

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