Access keys | Skip to primary navigation | Skip to secondary navigation | Skip to content | Skip to footer |
Problems viewing this site
Publications> Purchasing Update - Volume 71 April 2008

Procurement Update - Volume 71 April 2008

Welcome to the new look Procurement Update.  In the past few months you will have noticed that the word ‘purchasing’ is being phased out of QGCPO communications, including the most recent change to the State Procurement Policy, and this e-newsletter is no different.  We’ve done this because the word ‘procurement’ better reflects the complexity and effort involved in the acquisition of goods and services.  It also reflects the evolution of procurement worldwide into a profession that makes a direct contribution to positive outcomes for government and business.

The new State Procurement Policy came into effect on 1 January 2008 and marks a fresh change to procurement in the Queensland Government.  The policy has a greater whole-of-government focus, introduces new governance arrangements and will drive improved procurement performance and efficiency across government.  Integral to the reforms is a focus on sustainable (green and ethical) procurement.  These reforms demonstrate the readiness of government to improve procurement outcomes across its departments and agencies. 

So it is with this range of procurement reforms, that the QGCPO takes up the challenge to assist departments and agencies to plan and achieve better procurement outcomes.  We are working closely with government procurement areas and we’ll continue to keep those in the sector concerned with procurement issues informed through avenues such as Procurement Update.  We’ve also introduced the Procurement e-bulletin which will focus on news about standing offer arrangements.  So please look out for these as we hope they will serve as a way of keeping you up-to-date with the latest developments.

New State Procurement Policy goes live!

The State Procurement Policy came into effect on 1 January 2008.  The amendments to the policy are based on two separate reviews.  The results from the comprehensive consultation and review of the State Purchasing Policy, and the consultation and findings of the review of Purchasing and Logistics in the Queensland Government by the Service Delivery and Performance Commission (SDPC).
                                                                                               
Key changes
Recommendations from the reviews, which aim to improve the way Queensland Government buys its goods and services, including construction, are implemented by the new Policy. The main areas of change sought are:

The Policy continues to apply to departments, statutory bodies and Government Owned Corporations. The structure of the Policy remains the same, although there are two new schedules, and operational concepts have been revised and focus now on sustainable procurement.

In line with the recommendations of the SDPC, two new procurement governance bodies have been established. This will result in better leadership, co-operation and collaboration in Queensland government procurement.

Procurement Board of Management
The Procurement Board of Management will have a leadership role in the management of strategic procurement and logistics functions across the Queensland Government, and will assist the Director-General with significant procurement decision making. The Board is chaired by the Department of Public Works and its membership is drawn from senior executives of the following agencies:

Procurement Council
A Procurement Council has been established and consists of senior procurement personnel from agencies. The Council will provide expert advice and guidance on whole-of-government procurement and logistics strategies and initiatives.

More information
The new Policy will impact on both the day to day and strategic procurement activities of agencies. For a summary of the key policy changes and tips for implementation, refer to the Implementation Notes on the website.  A full copy of the State Procurement Policy is also on the website and should be read together with the Implementation Notes.

Please contact the Queensland Government Chief Procurement Office on 1800 631 991, or email betterprocurement@qgcpo.qld.gov.au, with any questions about the Policy or guidance.

SDPC implementation update

Since the review of Purchasing and Logistics in the Queensland Government in August, the Implementation Team and QGCPO have been progressing the recommendations in the report delivered by the SDPC. Here’s what’s been happening.

The coming months will be very important for all agencies as they commence their corporate procurement planning activities and, for some agencies, consider their procurement responsibilities and positioning/influence within their agency.

If you would like to discuss the good work the sector is doing on implementing the recommendations and reforms of the SDPC contact Tom Murphy, Director Implementation Office, on 3405 4243 or email tom.murphy@qgcpo.qld.gov.au.

Better Procurement Guides update

QGCPO will soon release two new Better Procurement Guides:

These guides contain updated information on the requirements now mandated under the recently released State Procurement Policy, and include useful examples and templates to assist procurement officers to apply the recommended practices.

Whole-of-government arrangement for records storage, retrieval and destruction services

SDS provided record storage services to selected agencies at its Brendale facility.  With the requirement to relocate the Department of Emergency Services’ warehouse and distribution functions to the Brendale facility, as a result of the City North Infrastructure project, the Queensland Government Chief Procurement Office (QGCPO) has been tasked with establishing a whole-of-government arrangement for records storage, retrieval and destruction services for use by Queensland Government departments/agencies.

The review process
In November 2007, QGCPO commenced a procurement process with a view to establishing and implementing a whole-of-government arrangement for the provision of a records storage, retrieval and destruction service throughout Queensland.  Research was undertaken with departments/agencies and other jurisdictions throughout Australia to ascertain their requirements, existing contractual arrangements and current and projected spend.  Market research, in the form of site visits, was also undertaken with three (3) of the major suppliers within the Australian market. 
 
A Product Advisory Committee (PAC) was formed in December 2007, consisting of representatives from various Queensland Government departments/agencies. This group was tasked with developing a set of specifications that met the needs of the Queensland Government.  Nominations from the PAC representatives were sought and an Evaluation Committee has now been established for the purpose of evaluating offers once they have been received.

Where to from here
With the recent release of the State Procurement Policy on 1 January 2008, it is now possible for the QGCPO to submit a recommendation to the Procurement Board of Management (PBOM) to mandate whole-of-government arrangements where it is determined that significant savings and/or other benefits to the government may be achieved.  It is likely that approval will be sought to mandate this arrangement by PBOM as there is the potential to deliver significant savings and benefits under this proposed arrangement, such as:

Tender
The Invitation document will be issued to the market in April 2008, with implementation and rollout to occur in June 2008 across the state.

More information
Should you require any information in relation to this arrangement please contact Tania Palmer on (07) 3235 4831 or via email at tania.palmer@qgcpo.qld.gov.au.

Carbon offsets for air travel

All government travellers across departments, Government Owned Corporations, statutory bodies and the Government Air Wing will offset an estimated 31,000 tonnes of carbon emissions annually through the purchase of carbon offset for air travel.  In December 2007, the Queensland Government approved several major climate initiatives and has firmly established themselves as a leader in the adoption of environmentally friendly practice.

Despite being in its infancy, carbon offsetting is a growing market.  Demand is rapidly outstripping the meagre supply of accredited programs.  Carbon offset programs are created by organisations wishing to offer services to companies and individuals creating a carbon imprint.  The programs are either commercial or not-for-profit organisations and are largely engaged in planting of native trees although other activities may also offset carbon emissions.

How will the program work?
The QGCPO will use offset programs accredited by the Department of Climate Change - DCC - (formerly known as the Australian Greenhouse Office).  This ensures that the scheme has undergone an independent verification process, proving its ability to offset carbon emissions.

Agencies will not be required to change any practices with regard to booking flights and more importantly, agencies will not have to purchase carbon offsets at the time of making a travel booking.  This ensures that agencies are not, inadvertently, paying twice for carbon offsets.

The QGCPO will manage the payment process on behalf of the Queensland Government’s carbon offset program.  Commencing in April 2008 each agency will be invoiced quarterly by the QGCPO for domestic flights taken.

Air travel
Currently, the purchase of carbon offsets is required only for domestic air travel with airlines that have an accredited offset scheme in place.  However, options are being evaluated by the QGCPO in relation to other domestic and international airlines that do not have an accredited carbon offsets scheme.

Qantas and Virgin Blue have already negotiated supply of offsets from their selected programs and the Queensland Government will use these programs which avoid the need for the government to independently procure an offset program.

Rental vehicles
In addition, carbon produced via rental of motor vehicles has been approved for offsetting – possibly commencing in July 2008. 

Contact
For more information in relation to the carbon offsetting scheme for travel, please contact Andrew McGregor, Manager Travel Management Unit, QGCPO on telephone: 3224 4186 or email: andrew.mcgregor@qgcpo.qld.gov.au. 

Expanding the procurement graduate network

This year we welcome fifteen new graduates to the 2008 Graduate Procurement Program! 

This talented group of individuals come from various universities across the state but share similar disciplines in Business, International Business, Economics and Commerce.

With the program now in its third year these graduates will be well supported with the graduate network now expanding to years 2006 and 2007 graduates

And to all participating agencies, we acknowledge and thank you for the valuable support and encouragement you have provided to the graduates and the Graduate Procurement Program, and we look forward to expanding our relationships with you into the future.  Thank you -

QRail
Queensland Police Service
QBuild
Department of Emergency Services
Queensland Health
Tarong Energy
Disability Services Queensland – Home and Community Care
CorporateLink
Department of Education, Training and the Arts
Queensland Transport
Corporate Solutions Queensland
Queensland Government Chief Procurement Office
Department of Main Roads

The 'Necessary Art of Persuasion' – Part two

This is the second article in the series addressing the ‘four essential steps of effective persuasion’ – establish credibility; frame for common ground; provide evidence; and connect emotionally.  It draws upon an article published in the Harvard Business Review (HBR) in May-June 1998 titled, ‘The Necessary Art of Persuasion’, by Jay A. Conger.  December’s Purchasing Update explored how to establish credibility and in this article we will examine Step 2:  ‘Frame for common ground.’

Framing for common ground is particularly pertinent to the procurement profession, where the challenge often lies in trying to convince others in the organisation, often at senior levels, of the value of procurement to the business.  As with the previous step ‘establishing credibility,’ the article emphasises the value of good preparation prior to engaging in persuasion.  Having a good argument backed up by some facts is not necessarily going to win the day against a sceptical audience; ‘it is critical first to identify your objective’s tangible benefits to the people you are trying to persuade.’

The article argues that finding common ground is not always straightforward and often the mutual advantages are not readily apparent, or may be perceived as being of negligible value to the target audience.  The foundation of developing common ground is to deeply understand the issues that are important to your audience.  Time spent on listening, and being open-minded to change is a characteristic of successful persuaders; ‘Often this process causes them to alter or compromise their own plans before they even start persuading.’

Thus, a tough customer who realises that not only are their views being listened to, but are also being ‘taken on board’, may be far more receptive to the persuader’s good arguments and facts, than one who perceives that they are being ‘railroaded’. 

The next article in this series will address the third step of ‘Providing evidence’, focussing on having the compelling facts and vivid language to support your case.

Corporate Procurement Planning

With the end of financial year almost upon us the time has come again to review our Corporate Procurement Plans (CPPs).

As part of the requirements set out in the State Procurement Policy, budget sector agencies must now prepare their CPPs in accordance with the methodology prescribed by the Queensland Government Chief Procurement Officer. In practice, what this means is that agencies have a set of templates and tools available for the first time to help guide the CPP process.

Interest in these templates and tools has been tremendous. All budget funded agencies, and several statutory authorities, nominated at least one person to attend the recently held workshops.

The workshops covered the CPP methodology which focuses on the improvement of procurement performance within agencies – either through efficiency or effectiveness. Through the CPP, review of past performance is used to ascertain the current level of procurement practices within the agency. Required level of practices are then formed with a view of future service delivery, to ensure that the agency’s procurement function is performing at the right level.

This is not simply a matter of upsizing on people, systems, or reporting. Just as you wouldn’t put a sports car engine in a lawnmower, so the procurement function should be matched to the needs of the agency. And just like a motor vehicle, the procurement function should be diagnosed and tuned to keep in peak performance.

Another visible change to the CPP content is the recognition of other supporting activities undertaken by procurement professionals. Whereas in the past the focus tended to be on examining the size of spend to determine resource needs, there is increasing recognition that procurement activities may not always occur where the spends are. Some examples are: setting up and managing arrangements for other agencies; opportunity realisation projects associated with new information systems; management of agency changes in the procurement context, and projects associated with delivering SDPC recommendations.

Feedback provided through the workshops indicates that agencies believe that their CPP is the pivotal document which assists in the planning of future procurement activity.

In a well formed CPP, future significant spend, non-spend and performance improvement projects are identified, measurable objectives are set and appropriate resources are recognised. By investing the time and effort up-front, future activities can be better managed, and outcome reporting is easier.

For more information, contact us at: betterprocurement@qgcpo.qld.gov.au

 

 

Last updated April 2008