Australian Government Air Travel Services Arrangement

The Department of Finance (Finance) is establishing a new Australian Government Coordinated Procurement arrangement for Air Travel Services (the Arrangement). The Arrangement includes both domestic and international Air Travel Services and will replace the Current Arrangement.

Finance has established and manages coordinated procurements for common products and services on behalf of the Commonwealth. The Objectives of the Arrangement are to:

• reduce the cost of supply to Participants;

• continue to meet the business needs of Participants;

• contribute to a competitive and viable industry;

• result in fair, equitable and transparent processes;

• optimise government savings through cost reductions, improved efficiencies and promotion of behavioural change; and

• positively contribute towards the Australian Government’s Net Zero by 2030 target initiatives (together the Objectives).

In addition to the Objectives outlined above, Finance also expects to obtain additional benefits through an Australian Government approach to the provision of Air Travel Services, including the implementation of a contractual framework that provides for:

• greater value for money (VFM) through consolidated purchasing power; and

• a greater level of flexibility for Participants, particularly in respect of performance management and changing service needs.

Finance intends that use of the Services procured from this RFT process will be:

• mandatory for all Non-corporate Commonwealth Entities in accordance with rule 4.12 of the Commonwealth Procurement Rules;

• optional for Corporate Commonwealth Entities that Finance authorises to participate in the Arrangement; and

• may be made available to other Authorised Organisations as approved by Finance.