Contract

This topic provides an overview of contracts.

There are two type of contracts departments use in order to provide funding to service providers.

The Service Agreement.

It is used for the majority of service delivery funding.

The Service Agreement is comprised of three parts:
- Whole-of-Government Standard Terms
- Funding and Service Details (FSD) have been developed by departments to align with the Whole-of-Government Standard Terms and detail the specific provisions for the funding and contact details and includes one or more Funding Schedules.
- Funding Schedule (FS) forms part of the Funding and Service Details (FSD) and prescribes the funding and the services to be delivered and reporting requirements.
The Short Form Agreement.

It is used for services or activities which are low risk and generally for funding under $100,000 per annum.

The Short Form Agreement is comprised of two parts:
- Whole-of-Government (Short Form) Terms and Conditions
- Particulars.
  
  There are two versions of the Particulars:
  - Particulars for Service Provision (executed agreements)
  - Particulars for Non-Service Provision (which are not executed) (e.g. events, products or minor assets).

When deciding on which contract type to create, use the two flow charts to make an initial selection and if necessary, use the table to validate your decision.

Table providing essential information - which contract is best suited to the funding being provided.

**TABLE:** Contract Types - Pricing Table and IRF Measures
Contract Type	Funding Type in Pricing Table	IRF Measures Available	Indicators of Use	Report Types Available	Notes
Funding Schedule (FS)	Per Annum	All measures available	Risk assessment indicates medium to high risk contractual arrangement Per Annum funding type is always required for a FS contract. This contract requires and organisation to submit an Annual Financial Statement (AFS)	Financial Statements Performance Measurement Data Milestone-related Report One-Off Client Management Data (ARC, SHS, YSCIS) Financial Acquittals	An FS contract type must contain at least one Per Annum funding type in the Pricing Table to unlock IRF measures and unlock the AFS requirement in Additional Information If the contract is a multi-year contract, it must contain a Per Annum line item for each year to access IRF measures for that year If a contract does not include at least one Per Annum funding type line item (even if for an amount of $0 which is made not visible to the contractor), this contract type will fail to Activate upstream For medium-high risk contracts, without a planned per annum payment, consider using an FS contract but plan to include a $0 Per annum line item to access IRF measures and unlock the AFS requirement One-off funding for purchase of assets funding type is not available in the Funding Schedule Contract Type
	Brokerage	Limited - Catchment Area only
	Milestone	Limited - Catchment Area only
	One-Off	Limited - Catchment Area only
Performance Based Acquittal (SFP) PBA service provision	Per Annum	All measures available	Risk assessment indicates low risk contractual arrangement If performance measures required must use Per Annum Funding type	Financial Statements Performance Measurement Data Milestone-related Report One-Off One-Off funding for purchase of assets Client Management Data (ARC, SHS, YSCIS) Financial Acquittals	This is a short form contract
	Brokerage	Limited - Catchment Area only
	Milestone	Limited - Catchment Area only
	One-Off	Limited - Catchment Area only
	One-Off funding purchase assets	Limited - Catchment Area only
Non-Performance Based Acquittal (SFP) non-PBA service provision	Per Annum	Limited - Catchment Area only	Risk assessment indicates low risk contractual arrangement	Financial Acquittals Financial Statements Milestone-related report One-Off One-Off funding for purchase of assets	This is a short form contract
	Brokerage	Limited - Catchment Area only
	Milestone	Limited - Catchment Area only
	One-Off	Limited - Catchment Area only
	One-Off funding purchase assets	Limited - Catchment Area only
Events (SFP) non-service provision	Per Annum	IRF not available	Risk assessment indicates low risk contractual arrangement	Milestone-related report One-Off One-Off funding for purchase of assets	This is a short form contract This type of contract will not allow use of geographical catchment areas or performance measures If reporting of catchment area/s is required, consider using a Non-Performance Base Acquittal contract
	Brokerage	IRF not available
	Milestone	IRF not available
	One-Off	IRF not available
	One-Off funding purchase assets	IRF not available
Funding and Service Details (FSD)	Not applicable	IRF not applicable IRF not available	FSDs are created as an overarching linking contracts between the department and the organisation when one or more Funding Schedules are used.	Reporting is not applicable	FSDs are usually created with a total value of $0 to enable multiple contracts with the same organisation to be linked to them without the restriction of a nominated total value in the overarching agreement. They contain essential supplier and departmental details only. Only one (1) FSD is used with an organisation at any one time. If a new funding schedule is created before any existing funding schedules have expired, the new funding schedule must be linked to the existing FSD. Note The exception is any FSDs migrated over from OASIS which have a prefix of ‘CDSS...’. New Funding Schedules cannot be linked to these migrated FSD’s. In this circumstance, even if there are existing schedules linked to the ‘CDSS..’ FSD, any new (and subsequent) Funding Schedules must be linked to the ‘CHDE...’ FSD. Only, where there is no current ‘CHDE...’ FSD should a new ‘CHDE...’ FSD be created. The final, wet-signed FSD form is completed outside of P2i and are stored within the project as an attachment. FSDs must be Activated in the upstream to be included in system reporting