Impact of procurement on service continuity

We deliver multiple services with varying contract terms. When these terms expire, the procurement process is often delayed, leaving staff and clients in a state of confusion and anxiety. Service continuity is impacted - e.g. whether new referrals should be taken, whether clients should commence transition plans. It is common for contracts at the end of their term to be extended for short terms (e.g. 3 months), sometimes repeatedly, which merely extends this period of uncertainty.

Adequate and timely indexation is also critical for NGOs. Service delivery viability is particularly sensitive to wage cost increases. Often, indexation is passed on late in a financial year (or after the end of a financial year). This impacts cashflow and results in constant 'catch up' in terms of funding keeping pace with the real cost of service delivery. Different levels of indexation (depending on funding source or Department) are also problematic.

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