Credit: Cytonn Photography via Unsplash
The Department of Finance has confirmed hourly rates for suppliers on the new Government Communications Campaigns Arrangement (GCCA) will be fixed for the first four years of the contract, AdNews can reveal.
This structure marks a departure from previous panel arrangements, including the Advertising Services Panel and the Government Communications Campaign Panel (GCCP).
Under those models, while maximum rates were set at panel establishment, suppliers retained flexibility to negotiate pricing on a campaign-by-campaign basis, and rate adjustments were more fluid.
In a response to tenderer questions following an industry briefing, the department confirmed the change.
“Yes, this is correct except that the Initial Head Agreement Period is four years, not five,” the department said.
“Hourly rates will be fixed for the Initial Head Agreement Period. Thereafter hourly rates will be subject to an annual adjustment as outlined in Clause 9 of Schedule 3 of the Head Agreement.”
The fixed pricing applies across all five service categories, including creative, media, research, digital and multicultural communications.
By locking in fees for the full four-year term, the GCCA is introducing a more rigid pricing framework intended to drive predictability and cost control, but one that may also limit flexibility for suppliers amid changing economic conditions.
”Finance’s priority will be to appoint to the GCCA, the service providers that will deliver the services to the highest possible standard and represent best value for money,” the department said.
Suppliers can nominate for multiple categories and campaign “Villages”, but the government has indicated it will limit appointments.
”Finance may, but does not intend to, appoint successful tenderers to more than one service category to more than one Village,” it said.
The department declined to confirm a timeline for next stages of the tender, citing variables including the volume of responses and compliance with submission requirements.
The GCCA will replace the existing Advertising Services Panel and related arrangements, with up to 30 suppliers expected to be appointed.
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