The ACT government's choice of a consortium for new foster and out of home care services for vulnerable children will see job losses at former provider Marymead.
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Children and Young People Minister Mick Gentleman last week launched the new ACT Together consortium, led by charity Barnardos. From next year it will deliver support to children who can no longer live with their birth families.
The consortium group also includes OzChild, Premier Youthworks, the Australian Childhood Foundation and Relationships Australia.
Marymead chief executive Camilla Rowland said the organisation was surprised and disappointed not to have been successful with its tender to continue to provide the services, now part of the government's new Step Up for Our Kids strategy.
Ms Rowland said Marymead had received calls from people unhappy with the announcement. The organisation will seek a briefing on why it was unsuccessful.
"They've told me they find it very difficult to understand why national organisations have been selected and there wasn't consideration of a local footprint from here in Canberra," she said.
"We're very disappointed. This is a huge loss to Marymead. Our other services will continue and we will keep building our services for children with a disability, counselling services for children and young people and all the other services we deliver."
Ms Rowland said about a third of the organisation currently worked in the area, and the change would result in job losses. Marymead is working to assist staff to move to organisations within the consortium.
She said the government had originally sought a panel of providers, but awarded the contract to the consortium.
Mr Gentleman defended the consortium choice, which was one of 14 tenders for the contract. Unsuccessful respondents will receive briefings from the chair of the evaluation panel.
"The request for tender... stated that we were seeking one or more providers for the provision of services for children, young people and their families within the strengthening high risk families and continuum of care domains. The outcome of the procurement has achieved this," he said.
A contract for strengthening high risk families services was awarded to Uniting NSW and ACT.
"The two lead agencies that have been procured were done so following a rigorous evaluation process and best met the aims to improve support for children and young people and could provide best value for money in meeting the requirements," Mr Gentleman said.
ACT Together spokeswoman Annette Kelly-Egerton said she expected most of Marymead's foster care programs staff would transfer to the new providers.
"There maybe some staff who use this as an opportunity to try something new, but we hope that staff who still want to work in this area will be offered positions in ACT Together or through Uniting Care.
"Through A Step Up for Our Kids we want to see families kept together, fewer children entering care and better support for foster and kinship carers in creating stable and happy homes for children and young people. The agencies in ACT Together are fully committed to making this happen."
Ms Kelly-Egerton said Barnardos and Relationships Australia had substantial experience in Canberra. Australian Childhood Foundation and Premier Youthworks have worked in Canberra in recent years, while OzChild will be a newcomer to the ACT.
