🇦🇺Australia

Poor Renewal Decisions from Visibility Gaps

2 verified sources

Definition

Departments must evaluate provider performance and market conditions before renewal, but manual processes often lack data visibility.

Key Findings

  • Financial Impact: AUD 50,000+ per contract in excess costs from non-competitive renewals; industry est. 2-5% of contract value lost
  • Frequency: Per contract lifecycle end
  • Root Cause: No automated performance dashboards or risk assessments during renewal planning

Why This Matters

The Pitch: Australian government entities overpay AUD 10-20% on renewed contracts due to bad decisions. Automation provides data-driven renewal insights.

Affected Stakeholders

Contract Managers, Procurement Strategists

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Contract Renewal Compliance Penalties

AUD 100,000+ in inefficient spending per audited department; 20-40 hours per renewal on manual reviews

Manual Contract Renewal Bottlenecks

40 hours/renewal at AUD 100/hour = AUD 4,000 labour cost; potential 5-10% overpayment from uncompetitive renewals

Fixed-Term Contract Renewal Violations

AUD 7,954+ per breach (underpayment penalty unit x 3); retrospective pay + interest

Diebstahl und Schwund von Büroanlagen durch fehlende Inventurkontrollen

Quantified (logic-based): For a business holding AUD 500,000 of office and IT equipment over a 3–5 year cycle, 1–3% loss through theft/shrinkage equates to AUD 5,000–15,000. For larger multi‑site organisations with AUD 2m in office assets, this rises to AUD 20,000–60,000 in economic loss.

Überhöhte Wartungs- und Ersatzbeschaffungskosten durch mangelhafte Anlageninventur

Quantified (logic-based): For a mid‑size office with AUD 200,000 annual spend on office equipment, maintenance and small plant, a conservative 5–10% avoidable cost due to poor asset inventory equals AUD 10,000–20,000 per year. In multi‑site operations spending AUD 800,000, the avoidable portion rises to AUD 40,000–80,000 annually.

Verlust von nicht ausgeschöpften Mitteln und ineffizienten Jahresend-Ausgaben

Quantified: ~1–3% des zugewiesenen Budgets als verfallene Mittel oder ineffiziente Jahresend-Ausgaben (≈AUD 20,000–150,000 p.a. bei einem Budget von AUD 2–5m).

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