Recommendation Briefly explain the reason behind the extension/renewal request and state the recommendation for which you are seeking approval: Example: The existing contract(s) between [Customer] and [Supplier(s)] for [goods/services] are due to expire on [date].There is an option in the contract to extend for a further two years. There is a continuing business need for the [goods/services]. Feedback on the supplier’s performance and a review of performance against KPIs has confirmed that [the Supplier] has provided excellent service in accordance with its contractual obligations. Market analysis (including benchmarking activities) also confirm that the pricing offered by the supplier is highly competitive and represents excellent value for money. It is not likely that better value for money will be obtained by going back to market for the [goods/services]. On that basis it is recommended that [insert role/position of person that you are seeking approval from] approve: The extension of [contract # between Customer and Supplier] OR [all contracts the Standing Offer Arrangement] for [goods/services] to [date]. Variations are made to the [contract/Deed of Arrangement] as identified in Section 9: Improvements. Background Basic information about the contract term and extension options Supplier name/ABN: Contract Ref/No: Commencement date of original contract DD/MM/YYYY Term of original contract [insert] years Are there extension options in the contract? Yes/No (if yes provide details) Will this extension/renewal result in: (tick all that An extension of time Increase in costs (spend) Change to the original scope Background to the establishment of the contract(s) Insert background information about this contract/arrangement, including the nature of goods/services purchased under the contract and the contract objectives, and the circumstances under which the contract was established (if relevant).
EXAMPLE ATTACHMENT Risk Management Risk Title Description (The risk is that…) Existing Controls Additional risk treatment Risk Access to information Through the term of the Arrangement, the supplier will have access to sensitive information that could be misused leading to significant legal costs. IS42 – for privacy requirements Deed of Confidentiality and Privacy executed with suppliers. Privacy clauses inserted on salary packaging Principal ensure supplier compliance with privacy requirements. Rare Moderate Service delivery Should service delivery levels fail this will lead to difficulties for employees and departments/ agencies. This impact on: The accuracy and timeliness of employees salary packaging payments/reimbursements; The workload for department/agency payroll, HR and taxation areas; and The attractiveness of salary packaging to employees, thus impacting on the utilisation of the SOA by the department/agency in the recruitment and retention of staff. Supplier experience and capability and continuity strategies in place. Monitor quarterly KPIs. Regular supplier meetings. Stakeholder feedback. Rare Moderate key personnel If inexperience personnel are utilised in the provision of Salary Packaging Services, this will increase the risk of incorrect information being provided to both the employees and employer. Resulting in customer dissatisfaction. Supplier employee retention procedures and policies. Supplier employee training. Principal monitor through regular supplier meetings. Rare Low Insert additional text here if required