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Purchaser-Provider Arrangements with the Defence Housing Authority

Defence and the Defence Housing Authority have two formal agreements: the Services Agreement for Housing and Related Requirements (the Services Agreement) and the Relocation Services Agreement. The agreements formalise the relationship between Defence (as purchaser) and the Defence Housing Authority (as provider).

In the closing stages of negotiation of the Services Agreement, which was signed in August 2000, Defence recognised the potential advantages for ADF members and their families if Defence transferred other housing-related responsibilities to the Defence Housing Authority. These services include housing allocation and re-occupation (including cleaning and maintenance on vacation of property), itinerary management and removals.

The progressive transfer of these activities commenced in July 2000, with a formal contract signed in December 2002. The Relocation Services Agreement is a commercial arrangement with detailed key performance indicators, a performance incentive scheme and specific periods of review.

The first review of the Relocations Services Agreement was completed at the beginning of March 2003. Defence used its discretion to extend the agreement to 2006 as the Defence Housing Authority's performance satisfied the key performance indicators.

Further reviews of the Authority's performance against the Relocations Services Agreement will be undertaken in 2006 and 2008. The contract will be extended at the end of these phases, subject to the Authority meeting the agreed key performance indicators. The current agreement can be extended until 2010.

The June 2003 Australian National Audit Office report on Defence Housing and Relocation Services (Audit Report No. 51) made recommendations relating to the purchaser-provider arrangements contained in the Service Agreement. Defence has agreed to adopt all recommendations contained in the report.