Factsheet: Corporate Commonwealth Entities and Commonwealth Companies

Whole of Australian Government Legal Services Panel

V2.2, December 2024

What is the Legal Services Panel?

The Whole of Australian Government Legal Services Panel (the Panel) has been established as a coordinated procurement arrangement, consistent with the Commonwealth Procurement Rules (CPRs). It leverages the Commonwealth’s purchasing power, increases price transparency and create efficiencies in the Commonwealth’s engagement with external legal services providers (LSPs). The Panel is administered by the Attorney-General’s Department.

The Whole of Australian Government Legal Services Panel is for Legal Services in 6 broad Areas of Law, to encompass the breadth of the Commonwealth’s legal requirements (see below). LSPs may be appointed to the Panel for one or a number of Areas of Law, each with an associated schedule of rates. 

A broad description of each Area of Law is provided below to clarify the types of Legal Services that relate to the Area of Law, although these descriptions are not exhaustive. Dispute resolution and litigation services can be provided under all Areas of Law, and relates to matters comprising disputes, regulatory proceedings or monetary claims relevant to that Area of Law. An entity may use an Area of Law for other Legal Services that are not expressly listed in the description of an Area of Law provided but are reasonably related to that Area of Law. This information is also available at Legal Services Panel areas of law.

Who can use the Legal Services Panel?

Corporate Commonwealth entities (CCEs) and Commonwealth companies are able to opt-in to use the Panel. Use of the Panel is mandatory for all non-corporate Commonwealth entities (NCCEs). Once an entity opts-in to use the Panel, the entity will be required to source its external legal services from the Panel, subject to the Legal Services Panel Guidance Material (including the flexibility mechanisms). Using the Panel for external legal services will fulfil the procurement obligations of prescribed CCEs that are subject to the CPRs. A full list of prescribed CCEs can be found in rule 30 of the Public Governance, Performance and Accountability Rule 2014.

Why should you opt-in to the Legal Services Panel?

Value for money and reduced administration

The competitive evaluation process and restricted number of LSPs that are available on the Panel provide favourable pricing and beneficial value-add services for users of the Panel. The Panel reduces administration and tendering efforts, and makes it easier and quicker to establish contracts. Participating entities are able to purchase directly from LSPs on the Panel, or undertake further processes to set up more targeted arrangements with one or more LSPs, such as more favourable rates or fixed fee arrangements in order to obtain the best value for money on any given matter. 

Entities can continue to purchase government legal services (including from the Australian Government Solicitor (AGS), Office of Parliamentary Counsel, Department of Foreign Affairs or Office of International Law) for tied or untied work whether or not they opt-in to the Panel arrangement. Entities will also be able to continue engaging counsel or barristers as well as LSPs in a foreign jurisdiction (where that provider is to provide legal services in relation to the laws of a foreign or international jurisdiction) whether or not they opt-in to the Panel arrangements.

Flexibility Framework

Acknowledging the benefit in facilitating new and emerging LSPs being able to provide services to the Commonwealth during the term of the Panel, as well as manage the complexity of legal services, the arrangements include specific flexibility mechanisms. While AGD administers this framework, these mechanisms allow participating entities to purchase up to 10% of their estimated external legal services spend from outside the Panel at the entity’s discretion, and for AGD to grant exemptions from using the Panel in exceptional circumstances where it is either not possible or appropriate to utilise the Panel.

Transitional arrangements

Legal services procured prior to the commencement of an entity’s participation with the Panel are not affected by the Panel arrangement. This is because the CPRs apply at the time the procurement takes place. However, LSPs on the Panel may provide these services under the terms and conditions of the Panel if requested.

Legal Services Panel Portal

AGD will upgrade, manage and maintain the Legal Services Panel Portal, which is a web-based information technology system available to entities to streamline the use of the Panel. The Portal will assist entities legal practice management function by making it easy to search for Panel LSPs and AGS (including their approved Areas of Law, rates, and key personnel), issuing Requests for Quote and Orders, reporting and details of Value‑Add Services. 

Access to AGD support

AGD will provide a range of services to support the successful implementation and use of the Panel by entities. Commonwealth entities that opt-in to use the Panel will have access to the services provided by AGD, which include: 

• Managing the Head Agreements between AGD, on behalf of the Commonwealth, and LSPs. 
• Hosting and optimising the information technology platform known as the Legal Services Panel Portal. 
• Monitoring performance of LSPs and addressing systemic and/or serious performance or compliance issues. 
• Coordinating access to value-add services offered by LSPs. 
• Monitoring the Panel to identify and implement efficiencies for the Commonwealth. 
• Investigating and coordinating a response or providing coordination assistance (where appropriate) to incidents and events involving LSPs that impact the Commonwealth. 
• Education and training to enhance entity ability to use and comply with the terms of the Panel.
• Providing high level analysis, reporting and strategic advice to support legal services decision making, planning and delivery across the Commonwealth. 
• Administering the Flexibility Framework.
• Reviewing and refreshing the Panel.

Access to additional information for determining Value for Money 

AGD will collect, and make available to Entities on the Panel Portal, information to assist Entities to determine which LSPs provide the best Value for Money for their needs. This will include: 

• legal services expenditure; 
• conflict of interest management;
• security and confidentiality, and how LSPs respond when there has been a breach;
• the LSPs commitment to and plan for environmental sustainability; 
• the pro bono work undertaken by the LSP.

What does opting-in entail?

Entering into the arrangement 

Commonwealth entities that choose to opt-in will be required to sign a Deed of Participation in the Whole of Australian Government Legal Services Panel Arrangement (the Deed of Participation). A condition of the Deed of Participation is that Participants may not enter any other agreement for services which are the same as the Services under the Panel, except as provided for in the Legal Services Panel Guidance Material (the Guidance Material).

Compliance with the Legal Services Panel Guidance Material 

Entities that opt-in to use the Panel are required to comply with the Panel Guidance Material. The Guidance material deals with use of the Panel arrangement, including the scope of the Panel, flexibility mechanisms and the Panel fee. 

Panel Fee 

In accordance with the government decision, a Panel fee will be payable by participating entities to fund AGD’s Panel administration costs on a cost-recovery basis. 

The Panel fee will be set by AGD at a rate of between 0.4% and 1% of an entity’s external professional legal fee expenditure (excluding GST, disbursements, counsel, AGS professional fees, government legal services professional fees, and overseas legal services expenditure). In any given year, the same Panel fee rate will apply to all entities. The rate may be adjusted by AGD annually within the range to ensure that the total Panel fee collected from all entities covers AGD’s forecast costs of administering the Panel. 

Government business enterprises and other entities that are exempt from reporting legal services expenditure to the Office of Legal Services Coordination (OLSC) must certify their total external professional legal fee expenditure should they opt-in to the Panel to enable the Panel fee to be calculated. 

AGD will invoice entities each financial year, and entities must pay the Panel fee to AGD within 28 days from the date of issue. If an entity opts-in to use the Panel part way through the year, AGD will charge a pro-rated Panel fee to cover the remaining period of the financial year. 

AGD is considered to be making a taxable supply to entities that will pay the Panel fee otherwise than from the Consolidated Revenue Fund, and accordingly a GST component may be included. 

The Panel fee will not be charged to an entity if the Panel fee for that entity is calculated to be less than $500 (exclusive of GST). 

Please refer to the Panel Fee Factsheet for more information.