Questions and answers - the tender process and funding
Archive: The tender process and funding
This document has been retained for archival purposes; it has not been updated since the 2016 BFC service design was completed.
Can I still apply to deliver the new Building Financial Capability service?
No. An open tender process was held between 1 June and 30 June 2016. More than 200 proposals to deliver the new service were received from new and existing providers.
The proposals were evaluated by 11 panels around the country which were made up of MSD staff and members of the community.
All applicants were advised directly of their tender outcomes in October 2016.
Who are the providers?
The successful providers are listed on the Family Services Directory.
What is the term of the new contracts?
The contracts are for two years and eight months, from 1 November 2016 to 30 June 2019 [now till 30 June 2024]
How much funding is being offered in total?
There is $10m in a full financial year for Building Financial Capability services.
As new services commenced on 1 November 2016, the financial year 2016/17 will contain eight months and the pro rata adjustment will be $6.67m. In the 2017/18 and 2018/19 financial years, the full value of $10m is available.
What is transition funding?
Keeping the client at the centre is the priority of Building Financial Capability services. As a result of the open-competitive tender process, some providers have received decreases in funding or were unsuccessful for funding.
This may result in a reduction in the number of clients these providers are able to deliver services to. Where necessary, it is vital that a smooth transition of service provision is available for clients to move to a successful provider or complete their service delivery.
In order to ensure this continuation of service availability, transition funding was made available to providers with clients at risk. This was done based on a regional assessment of the needs of clients and providers in each community, as a part of contract negotiations. Transition funding is available for a maximum period of three months, until 30 January 2017.
As clients will have a range of needs, a specific amount per client has not been set. It will be at the providers’ discretion to use their transition funding as they see fit, to meet the needs of their clients and community.
If you have any questions about transition funding, or whether you are eligible for it, please get in touch with your local Community Investment Advisor (CIA).
Where can I find information about how the new service is being priced?
The way we fund the Building Financial Capability service was considered and built following the re-design process. Read more about the purchasing and pricing model.
