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From 1 July 2026, federal agencies must use a single contractor panel to engage professional contractors, replacing a fragmented mix of more than 20 agency-specific arrangements that had accumulated across government.
The Department of Finance established the People Panel Phase 3: Professional Contractor Services as a mandatory whole-of-government coordinated procurement. Non-corporate Commonwealth entities subject to the PGPA Act have no choice but to use it for in-scope services. Corporate entities and government business enterprises can join with Finance approval.
The People Panel covers government workforce procurement in three phases:
Phase 1 covers recruitment and search services for APS positions and board appointments
Phase 2 covers labour hire workers from APS1 to SES equivalent
Phase 3 covers professional contractor services and took effect 1 July 2026
Phase 3 absorbs the largest slice of existing arrangements and carries the most direct impact for suppliers and agencies.
What the panel covers
Phase 3 spans 4 service areas and 18 service categories. A professional contractor under the arrangement is an individual with specialist expertise who works under agency supervision, at the agency's premises or another agreed location, and is not an APS employee.
Out of scope: technical ICT categories (those stay under the Digital Marketplace), construction and resource trades, military engineering, learning and development, statutory and non-statutory appointments, and consulting engagements defined under RMG 423.
Which arrangements it replaces
The Phase 3 Head Agreement draws in service categories from at least four named panels:
Department of Defence, Defence Support Services Panel (SON3485107)
Australian Federal Police, Capability Support Services Panel (SON3538332)
Department of Health and Aged Care, Health Data Analytics Panel (SON3390679)
Department of Defence, Negotiation Services Standing Offer Panel (SON3389328)
It also pulls in professional contractor categories from a broader range of government services panels. Finance says the consolidation cuts tendering costs for industry, standardises rates and contract terms, and gives government better visibility over spending.
Transition rules
From 1 July 2026, agencies must use the Phase 3 Head Agreement for all new in-scope contracts. Existing contracts have a six-month transition window. Before an agency exercises any extension option on an older arrangement, it must run a value for money assessment against the new panel.
What suppliers need to do
If your business holds a position on the Phase 3 panel, check that your Head Agreement details are current. Agency clients on older arrangements face mandatory transition, so contacting them now avoids delays in your contracts.
If your business was not part of the Phase 3 tender, monitor AusTender for any future on-ramp opportunities.
Australian Tenders monitors procurement opportunities from government agencies across Australia, including federal, state and territory departments, authorities and government-owned organisations. By bringing opportunities together in one place, we help businesses navigate the procurement landscape, identify relevant tenders and stay informed about the policies and spending priorities shaping future contract opportunities.