Performance of Australian Aid 2015–16 May 2017


Target 7: Working with the most effective partners



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Target 7: Working with the most effective partners

By July 2015, design and apply new systems to assess the performance of the aid program’s key delivery partners and ensure stronger links between performance and funding


Status: Achieved

The target was achieved in 2014-15 with the introduction of Partner Performance Assessments; a strengthened Multilateral Performance Assessment process for multilateral organisations receiving core funding; reforms to systems for assessing performance under the Australia-NGO Cooperation program; and progress in linking performance to payments in aid agreements. 

In 2015-16, Australia continued to refine the new systems introduced in 2014-159 to assess the performance of the aid program’s key delivery partners. Working with the most effective delivery partners helps ensure Australia’s aid investments are achieving value for money.

In 2015-16, 75 per cent of DFAT’s administered ODA was delivered through agreements with three main types of implementing partners: commercial partners, multilateral organisations and NGOs (Figure 7).

Partner Performance Assessments (PPAs) review how well key implementing partners (commercial partners, multilateral organisations and NGOs) are delivering the services specified in aid funding agreements. The focus is on the performance of the implementing partner, as distinct from the quality of the investment itself (which is assessed by the annual Aid Quality Checks). 



Figure 7: DFAT administered ODA by delivery partner type, 2015-16

Figure 7: DFAT administered ODA by delivery partner type, 2015-16

Assessments were completed for individual funding agreements valued at over $3 million except for core contributions to multilateral organisations.


Table 1: PPA completed by delivery partner type, 2015-16

Partner type

Number of PPAs

Overall value of agreements assessed ($m)

NGOs

102

$1,393 

Commercial suppliers

85

$4,038 

Multilateral Organisations

131

$2,559 

The results (Table 2) indicate that the three main delivery partner categories are all performing to an adequate level or better. Over 94 per cent of assessments completed had ratings of adequate (4) or higher.

Table 2: Average PPA rating score by delivery partner type, 2015-16

Commercial Partners

NGOs

Multilateral Organisations

Overall Partner Average Rating

5.1

5.0

4.6

4.9

Commercial partners achieved the highest average PPA rating by delivery partner type. Agreements with commercial contractors are characterised by a high level of managerial direction and control by DFAT, whereas grant agreements with NGOs and multilateral organisations are partnership agreements where DFAT has agreed to fund investments over which partners have much greater autonomy in investment design and implementation. Australia’s investment in multilateral programs is often also made in collaboration with other donors, requiring greater degrees of compromise by all parties than is required in other arrangements. In addition, multilateral organisations operate under policies and procedures endorsed by boards (which include Australian representation) and these policies and procedures can be difficult to change quickly to meet Australia’s specific interests in individual countries (in contrast to the flexibility DFAT has when engaging commercial suppliers).

PPA information is used to inform tender evaluation and agreement award decisions. In addition, good progress has been made by DFAT in linking partner performance to payments in commercial agreements. In 2016, 100 per cent of complex aid tenders released and 100 per cent of complex aid contracts entered into by DFAT linked performance and payment (most commonly by linking a proportion of management fees to PPA scores). 

Reforms to systems for assessing the performance of NGOs receiving funding through the Australian NGO Cooperation Program (ANCP) were introduced in 2014-15. Eleven NGOs in the ANCP with agreements over $3 million in value were assessed in April 2016. All NGOs satisfactorily met the performance criteria, which confirmed continued access to ANCP funding. 

Multilateral performance assessments for multilateral organisations receiving core funding from the Australian aid program support and inform regular dialogue at headquarters level on key performance issues. Seven assessments were completed during 2016 and are summarised in Chapter 3 of this report.





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