The Australian Competition and Consumer Commission proposes to grant authorisation to Job Futures for its collaborative tender arrangements.
These arrangements are made on behalf of its members, who are smaller non-profit service providers, for the purposes of bidding for government funding for the provision of 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 largest program is the Australian Government's Job Network.
"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.
"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."
At this stage, the ACCC proposes not to authorise certain non-compete arrangements within the Job Futures model.
"While the ACCC recognises the success of the Job Futures model relies on maintaining stable membership and information sharing between members, the ACCC considers the current non-compete arrangements are unnecessarily restrictive," Mr Samuel said.
Having terminated membership of any subcontractor that prepares an individual tender, Job Futures can then also terminate any subcontract that member currently has. Given the operation of three year contract periods, and the need to commence tender proposals during the third year of the current period, the practical effect is that members are indefinitely discouraged from tendering separately to and in competition with Job Futures.
The ACCC understands that Job Futures is currently considering less restrictive options to its current non-compete arrangements.
The ACCC now invites submissions in response to its draft determination.
More information regarding Job Futures' application and a copy of the draft determination are available from the ACCC's website, or by emailing the Adjudication Branch at adjudication@accc.gov.au.