Prep for DES Contract Announcements

This is the second article in our series – ‘The DES Roadmap: from Tender to Transformation – designed to help Disability Employment Services (DES) providers navigate the critical steps from tender submission to contract implementation. With practical advice and insights, this series equips you to tackle key challenges and seize opportunities in the evolving DES landscape.

In this article, we focus on preparing for contract announcements—a pivotal moment for every provider. With outcomes expected as early as February, now is the time to plan. Whether you’re optimistic about expanding your market share or preparing for potential changes, the key to success lies in a well-thought-out strategy.

To help you navigate this stage, we’re drawing on the expertise of Peter Bacon, CEO of Disability Employment Australia, and Paul Diviny, Founder and Director of Prospert. Their insights will help you build momentum, refine your approach, and position your organisation for long-term success.

1. Focus beyond logistics

One common pitfall in implementation planning is focusing solely on logistics—staffing, offices, and IT—while neglecting broader changes to the service delivery model. Peter Bacon warns, “The danger in only focusing on logistics is that this is your primary moment to affect the service delivery model change. If you don’t think about that right now, you’ll implement logistics but may never get to the service delivery model later.”

Providers should take this time to revisit their tender commitments and consider how to integrate new service elements holistically. “Your plan needs to be holistic,” Peter adds, “factoring in logistics, service delivery model change, and capability building.”

2. Test and refine service delivery models

Instead of waiting until July 2025 to implement new ideas, providers should begin testing now. Paul Diviny suggests, “Run a pilot in one ESA to iron out any issues. Testing your model now gives customers and employers a chance to experience your new approach and helps ensure it’s ready for full-scale delivery.”

This proactive approach not only mitigates risks but also demonstrates a commitment to continuous improvement. Paul continues, “Providers run the risk of entering 1 July without trying and testing these new ideas, which could cost them more money and time than anticipated.”

3. Engage and communicate with employers

Employer relationships are foundational to DES success, and now is the time to strengthen them. As Paul points out, “So many providers think the job’s done after getting an MOU or letter of support, but six months later, the employer has forgotten about it. Providers need a passive communication approach to keep those relationships warm.”

This engagement should also extend to community organisations. Peter reminds providers, “Make sure your project planning includes a partnership stream. If you’ve made commitments to community groups in your tender, follow through now to build trust and ensure collaboration later.”

4. Prepare for multiple scenarios

With DES contracts set to consolidate, providers must plan for a range of outcomes, including losing some ESAs. Peter explains, “We’re going from around 930 contracts to about 450, so movement is inevitable. Even if you gain market share, you may lose some areas.”

To navigate this uncertainty, providers should model financial scenarios, plan for staff redeployment, and identify opportunities to scale other services, such as NDIS employment supports or Parent Pathways.

5. Invest in staff training

Finally, providers must ensure their workforce is prepared to deliver on new service expectations. Peter emphasises, “Government wants to see ongoing professional competence in the DES sector. If organisations aren’t all over that, they need to start now.”

Paul adds, “When onboarding new team members, ensure your service delivery model is fully set up and ready to go. Waiting until July or later means you’ll end up with inconsistent practices across your sites.”

The path to July 2025 is paved with challenges, but also opportunities. By acting now, providers can position themselves for a seamless transition and ensure they deliver the high-quality services their clients deserve. As Paul notes, “The best way to start strong is to prepare early, test thoroughly, and keep all stakeholders engaged along the way.”