To monitor delivery of its policy commitments, Australia needed a system to track procurement outcomes across its development assistance supply chain, in particular the engagement of local workers and subcontractors. Australia’s Department of Foreign Affairs and Trade (DFAT) developed a common reporting mechanism to gain comparable information on local procurement, employment and financial data at contract and subcontract levels.
Tracking local content in Australia’s development contracts: PERFORMS
Abstract
Despite the Development Assistance Committee (DAC) commitment to untying official development assistance (ODA) and encouraging local and regional procurement, historical data across DAC providers indicates that high-value contracts are still frequently awarded to contractors based in donor countries. Local procurement has become a key objective of Australia’s international development co‑operation, in line with its 2023 International Development Policy (IDP) commitments to locally led development and supporting quality infrastructure in the Indo-Pacific. To monitor delivery of these commitments, Australia needed a system to track procurement outcomes across the development assistance supply chain, with a particular focus on the hiring of local workers and subcontractors. Contractors engaged by Australia’s Department of Foreign Affairs and Trade (DFAT) lacked a systematic way to report this information, making the data hard to collect and compare, and limiting DFAT’s ability to monitor progress on key Australian government policy goals including locally led development, as well as gender equality.
In 2017-2018, DFAT developed a framework for collection of financial, personnel, subcontractor and results data, for ODA contracts over AUD 3 million (approximately USD 2 million). This threshold was selected as it captures most of DFAT’s ODA commercial contracts, while remaining manageable for contractors. The Project Electronic Recording of Financial and Operational Reports Management System (PERFORMS) was launched in financial year 2018/19.
Collecting PERFORMS data on all contracts requires substantial investment from both DFAT and contractors. Data is collected through an annual questionnaire completed via an online system called SmartyGrants with provided data downloadable in Excel format. After processing data, dashboards are created by DFAT with key data points providing an overview of commercial contracts in a country/region. Contractors receive their consolidated data back and data is also made available to responsible DFAT staff.
Most PERFORMS data is commercial-in-confidence and personnel data falls under the Commonwealth Privacy Act 1988. Therefore, raw data is only shared with the relevant contractors and contract managers. Beyond this, data are shared in aggregate only.
Availability of comparable data covering a significant portion of Australia’s ODA programme. For financial year 2022/23, data was collected from 29 contractors for 115 development investments. This comprised over 300 contracts and subcontracts, with a total value of approximately AUD 7.9 billion. For financial year 2023/24, PERFORMS data from 23 contractors covered 117 development investments in 19 countries.
Deeper insights to inform decision making. PERFORMS data show a significant difference in supplier nationality within the ODA delivery chain: while 94% of DFAT’s prime contracts are awarded to firms registered in Australia, 70% of subcontracts go to locally registered suppliers (Figure 1). This contrast demonstrates the role of subcontracting as a mechanism for engaging local markets.
Through standardisation, policy-relevant insights are more easily extracted. PERFORMS data informs other reporting processes, such as Australia's locally led development indicators and DFAT’s own ministerial and executive reporting. Contractors report that the data they received back provides them with a clear profile of their supply chain in different countries, including gender disaggregated personnel data, enabling them to ensure alignment with Australia’s policy goals and derive greater efficiency in operations.
The number and value of local subcontracts and grants have increased. From the 2021/22 to 2023/24 financial years, the number of local personnel, subcontractors and staff engaged (employment created) by managing contractors increased by 28%. During the same period, the number of local subcontracts/grants arranged by prime contractors increased by 32% and the value of local subcontracts/grants increased by 26%. While not directly attributable to PERFORMS itself, this indicates that generating concrete data on policy objectives can drive dialogue and shed light on more effective delivery.
Source: DFAT (2024), PERFORMS Dashboard 2023/24, https://www.dfat.gov.au/sites/default/files/2023-24-performs-dashboard.pdf.
A clear policy hook helps to explain why new systems are needed: Having a clear objective linked to government policies and priorities helped secure approval and support for the PERFORMS project. Demonstrating how the system would assist in better development programme analysis, as well as tracking government policies such as on gender equality and localisation was vital.
Consult stakeholders: Extensive consultations were held with stakeholders at various levels, both within DFAT as well as with contractors. This involved understanding what information is readily available or can be easily collected by contractors. While contractors were initially reluctant to provide data, DFAT was able to secure their buy-in once they understood the benefits, such as the time and cost efficiencies in using standardised reporting across all DFAT contracts. Consultation helped to embed practices and foster ownership among partners.
Implement gradually and make iterative changes as required: Before its official launch, DFAT conducted two trials of PERFORMS with its 29 largest contracts managed by 15 contractors. This provided an opportunity to fully test and refine the system, while revealing gaps in contractors’ data provision systems. The SmartyGrants platform used for the questionnaire is administered internally by DFAT, enabling DFAT to streamline the questionnaire as needed without extra cost or burden on resources.
While donor-managed delivery chain data may offer greater reliability and completeness, it is often less accessible to external users, limiting its broader utility. Due to confidentiality concerns, PERFORMS data are useful at aggregate level, but are more limited in capturing project-level information. It is notable that many of Australia’s prime contractors also work with other donors, suggesting that, in principle, they could apply similar reporting practices in other contexts.
Generating data on local procurement can support better implementation of DAC standards. The subcontract data generated through PERFORMS offers a more detailed picture of Australia’s untying practice. This supports monitoring of the DAC Recommendation on Untying ODA as well as informing how Australia can ensure it is implementing it fully.
DFAT, Development Procurement Pipeline: https://www.dfat.gov.au/about-us/business-opportunities/development-procurement-pipeline.
DFAT, 2023/24 PERFORMS Dashboard: https://www.dfat.gov.au/sites/default/files/2023-24-performs-dashboard.pdf.
DFAT, Australia’s International Development Policy: https://www.dfat.gov.au/publications/development/australias-international-development-policy.
DFAT, DFAT Guidance note: Locally led development, https://www.dfat.gov.au/sites/default/files/dfat-guidance-note-locally-led-development.pdf.
DFAT, The Performance of Australian Development Cooperation report, https://www.dfat.gov.au/publications/development/performance-of-australian-development-cooperation-report-2023-2024.
OECD (forthcoming), OECD Development Assistance Peer Reviews: Australia 2025, OECD Publishing, Paris.
OECD (2025), DAC Working Party on Development Finance Statistics: Exploring methods to track aid subcontracts, https://one.oecd.org/document/DCD/DAC/STAT(2025)56/en/pdf?sessionId=1759661556929.
OECD (2024), Pathways Towards Effective Locally Led Development Co-operation: Learning by Example, OECD Publishing, Paris, https://doi.org/10.1787/51079bba-en.
OECD (2021), “Untying ODA”, TIPs Fundamentals, Development Co-operation TIPs ∙ Tools, Insights, Practices, https://www.oecd.org/en/publications/development-co-operation-tips-tools-insights-practices_be69e0cf-en/untying-oda_251efd69-en.html.
To learn more about Australia’s development co-operation, see:
OECD, Australia, Development Co-operation Profiles, OECD Publishing, Paris, https://www.oecd.org/en/publications/development-co-operation-profiles_04b376d7-en/australia_b4d74d53-en.html.
More In Practice examples from Australia are available on Development Co-operation TIPs • Tools Insights Practices.
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