DIMIA Annual Report 2004-05
Purchaser/provider arrangements
PURCHASER ARRANGEMENTS-DIMIA AND DFAT SERVICE LEVEL AGREEMENT
The department signed a new purchaser agreement in August 2004 with the Department of Foreign Affairs and Trade (DFAT) for the purchase of management services at overseas posts.
Responsibility
The Service Level Agreement (SLA) is an agreement between the two agencies whereby DFAT provides management services at DFAT-managed posts to facilitate efficient and effective Australian Government business overseas. The SLA aims to ensure, at whole-of-government level and within available resources, the efficient administration of posts through improved management and utilisation of resources and the avoidance of operational and financial duplication across agencies at overseas posts.
Control arrangements
The new SLA covers the period 1 September 2004 to 31 August 2007 and may be extended for a further two years if both parties agree in writing. The SLA details the provision of management services, agency responsibilities, performance indicators and cost recovery arrangements for the term of the agreement. Management services include personnel, office, property and financial services. The SLA also includes a dispute resolution mechanism and a provision for reduced fees if services are not provided to the agreed standard, based on the performance indicators.
Resourcing
The department pays a global service fee to cover the costs to DFAT of delivering the services. The fees are calculated on the basis of locally engaged staff salaries, the time spent by those staff delivering management services and the number of departmental A-based and/or locally engaged employees at post. The total 2004-05 SLA fee was $5 263 852.
Performance against outcomes and outputs
The SLA contributes to the department's outcomes by contributing to the efficient delivery of management services at overseas posts.