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The transition to six new regional contracts to provide accommodation for destitute asylum seekers, and their operation during the first year, did not go well. Only one of the three contractors had past experience of managing asylum accommodation and overall performance has been patchy: there were delays at the outset and the Department and contractors have all incurred additional costs. The standard of the accommodation provided was often unacceptably poor and the providers failed to improve quality in a timely manner. These problemswere not helped by the Department's poor management of the transition from the old contracts and its failure to impose penalties on contractors in the transition period, with progress impeded by the Department and its contractors' failure to work together effectively in partnership, and to share necessary information.
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