ACCC authorises Job Futures to collectively tender for employment services contracts
The Australian Competition and Consumer Commission has issued a determination granting authorisation* to Job Futures for its collective tendering arrangements.
The arrangements are made on behalf of Job Futures' members, which are smaller non-profit service providers, to allow bidding for government contracts for employment services.
Job Futures works with its members to deliver government funded employment service programs to communities throughout Australia, via subcontracting arrangements. Its members include local community-based, Aboriginal and larger charitable organisations.
"The ACCC is satisfied that Job Futures' collective tendering model reduces administration costs and enables smaller service providers to enter the Job Network and remain viable", ACCC Chairman, Mr Graeme Samuel, said today.
"The ACCC also recognises the public benefit in having smaller community based organisations participating in the Job Network, particularly as a result of their diversity in approach and local focus in delivering these services. These smaller non-profit organisations often provide employment services to disadvantaged people in places where larger for-profit organisations do not operate."
The authorisation also extends to certain 'non-compete arrangements' within the Job Futures model. Job Futures revised these arrangements to address a number of issues identified by the ACCC in its draft determination.
The ACCC recognises the significant investment that Job Futures makes in new members and the access to shared knowledge and experience that comes with being a member. In this context, the ACCC considers it reasonable for Job Futures to require members not to tender in competition with it for two contract periods, or six years.
"The ACCC considers that the revised non-compete arrangements will give rise to some detriment but will enable Job Futures to deliver the benefits of its operational model without the significant restrictions imposed upon members under the previous arrangements," Mr Samuel said.
More information regarding Job Futures' application and a copy of the determination are available from the ACCC's website or by emailing the Adjudication Branch at adjudication@accc.gov.au.
*Authorisation provides protection from court action for conduct or arrangements that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Authorisation is granted where the ACCC is satisfied that the benefit to the public from the conduct outweighs any public detriment.
