Some typical transition considerations are:

a.

Confirm the transition in and transition out obligations in the contract.

b.

Obtain a transition in and transition out plan from the incoming and outgoing supplier and ensure each meets the obligations under the relevant contract and your entity's needs.

c.

Prepare a timeline of activities/events, including change over periods.

d.

Identify resource requirements.

e.

Identify key roles and responsibilities and how these change with the transition.

f.

Note specific differences between the previous contract and the new contract.

g.

Identify who needs to know what details about the new arrangement and what communication channels you will use.

h.

Consider training needs for staff if the requirements are new or significantly different, or if supply arrangements will change.

i.

Identify and manage risks such as:

•  maintaining a continuous supply of goods or services during the transition

•  managing and minimising the effects associated with the changes on users

•  managing the outgoing supplier's performance through to the conclusion of their contract.

j.

Retrieve any Australian Government assets, documents or information provided to the outgoing supplier and provide those, as required, to the new supplier.

k.

Identify any intellectual property rights within the old contract and assess the suitability or any risks for the transition to the new contract.

l.

Arrange access for the new supplier to facilities or systems, including security clearances, and terminate access for the old supplier.

m.

Identify additional transitional arrangements that may need negotiation with the incoming or outgoing supplier.

n.

After the transition and final deliverables are satisfactorily received, approve final payment to the outgoing supplier.

Tip - transition if there is a no change in supplier

Even when the new contract is being provided by the same supplier, there are likely to be differences between the previous contract and the new one. You need to ensure that everyone (you, the users and the supplier) are clear about any differences, including:

•  changes in scope of the goods or services

•  changes in the mode of delivery

•  changes in timing of delivery

•  changes to the contract terms and conditions

Think about who needs to know about the changes and keep them informed. In the early stages of the new contract, you should monitor contract performance closely to make sure that the supplier is not simply doing what they have always done but is delivering the goods and services under the terms and conditions of the new contract.

Consider, on a cost benefit basis, whether you need to develop a separate transition plan or transition checklist for your contract.

Tip - transition if there is a new supplier

When the new contract is being provided by a new supplier, the most important thing is to try to facilitate a smooth transition from the old to the new. Do your best to encourage a cooperative approach between the two suppliers but note that realistically, the two suppliers are likely to be commercial competitors.

You will need to carefully manage the outgoing supplier to make sure they meet their obligations and do not impede the incoming supplier from delivering the specified goods and services. Make sure you are clear on the transition obligations in both contracts so that they can be enforced.