What is 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:

• Where a service provider has a contract with one or more third parties to deliver all or part of the contracted services.
• 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 recruitment agency 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.

It’s important you read your contract to be clear about the services you have been contracted to deliver. For example, paying a third party to deliver specialist therapeutic services for a child or young person in Foster Care as part of the PSP contract may or may not be subcontracting. 

Emergency subcontracting arrangement

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

If you are requesting urgent approval to provide services to clients in an emergency/or short-term arrangement, you are required to provide high level information to your contract manager to enable the relevant DCJ director to approve the services as an interim arrangement.

Approval by the relevant DCJ director can be provided via a phone call but must be followed up in an email. This emergency subcontracting arrangement can be approved for 2 weeks while you complete the subcontracting application form. See How to obtain written consent to subcontract.

Independent Assessor

If you are a service provider (IA panel member) 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. Contact the Independent Assessment team.

If you’re a Permanency Support Program (PSP) service provider proposing to subcontract an DCJ approved IA panel member to complete an assessment you need to seek our consent. See Subcontracting requires written consent from us.