International Recognition for the Queensland Government’s Purchasing Training & Certification
Queensland Purchasing’s Certification Programs for Levels 3 and 4 received international recognition by the Chartered Institute of Purchasing and Supply (CIPS) on August 15.
At the official award ceremony, Keith Trower, CIPS UK Deputy Chief Executive Officer presented Mal Grierson, Director-General, Department of Public Works (on behalf of Robert Schwarten, Minister for Public Works) with the achievement award.
Minister Schwarten said CIPS is the peak body for purchasing and supply management and its professional qualification standard is the recognised international benchmark for the profession.
"Queensland Purchasing’s procurement training and certification program will be the first ever government-developed program in Australia to receive both educational parity and Foundation membership status for students against the prestigious international CIPS award," Minister Schwarten said.
"This award is the fruition of many years of creative work by Queensland Purchasing staff in developing and operating the Queensland Government’s Purchasing Training & Certification Framework."
"It is a wonderful achievement and one that we can all be proud of. Not only do we meet national competency standards for this Queensland devised program, but we now have international recognition as well," he said.
This means that eligible students will be able to receive global recognition through the award of a CIPS professional membership grading on completion of each level of recognised purchasing certification.
Queensland Purchasing Certification Program Manager, Janelle Newlyn is now working with CIPSA to inform eligible students and government agencies about this new pathway and recognition. For more information visit, training or email: betterpurchasing@qp.qld.gov.au.
Keith Trower, CIPS UK and Mal Grierson,
Director-General, Department of Public Works.
Evelyn Jelliffe, Director Queensland Purchasing and Keith Trower, CIPS UK
The State Purchasing Policy – Under Review
In the June 2006 edition of Purchasing Update, the Department of Public Works announced its review of the State Purchasing Policy (SPP). This current edition brings readers up to date on the status of the review.
The Department released an Issues Paper containing propositions in eight areas targeted for review. The consultation period closed on 23 June.
During this period, Department of Public Works staff held almost 40 meetings with stakeholders in Brisbane, Townsville and Cairns. Attendees included senior procurement practitioners within agencies, and representatives of peak industry and union bodies. In addition, over fifty stakeholders responded to the Issues Paper via written submissions.
The Department is pleased to advise that the Issues Paper was well received. Analysis of consultation feedback confirms support for enhancement of the SPP in the areas identified by the Department.
The Department of Public Works thanks all stakeholders who participated in the consultation process. Feedback is now being incorporated into a Policy Paper, which will be released in October this year. The Policy Paper will give stakeholders another opportunity to comment on the proposed changes to the SPP, prior to the final amendments being recommended to Executive Government for approval.
If you would like to know more about the review, please contact either John Dears (07) 322 42910 or Megan Collins 07 322 42736, or email your query to SPP.Review@publicworks.qld.gov.au.
Recognition of the value of Good Procurement – The Main Roads Story
Main Roads' Program Procurement Division (PPD) received the ultimate accolade recently following the restructure of the organisation in July 2006. PPD has been shifted from its former position within Corporate Services to the Program Development and Delivery Group, which is responsible for delivering the roads program across the State.
Main Roads is one of the first agencies within the Queensland public sector to position its procurement experts together with delivery specialists. The value of procurement is also recognised in a number of strategies contained in the Main Roads Strategic Plan released this week including:
Improve understanding of suppliers’ capability through engagement and consultation with roads supply industry and create opportunity for long-term industry growth,
Develop consistent processes and systems that position the department as the 'customer of choice'.
Placing PPD within the area of program development and delivery connects procurement to the business process of the Department. This move recognises strategic procurement as a core business goal. Moreover, it is recognition at the highest levels of management that strategic planning is the key component of the procurement process.
PPD is establishing and maintaining a sound understanding of the supply markets in which Main Roads operates, and uses this information to develop better ways of purchasing the infrastructure and services needed by the State of Queensland. This assists in the successfully delivery of the Department's roads program commitment.
Very recently, Queensland Purchasing asked PPD to participate in the pilot for the Procurement Capability and Review. PPD was keen to have a third party review its performance to date and receive any feedback on the possibilities of improvement. The review has been a very positive experience for PPD with the final report providing not only positive feedback on some of the good work undertaken by PPD but also a number of recommendations to assist PPD in moving forward.
These recommendations are currently being reviewed by PPD with a view to implementation in the next 12 months. Implementing these recommendations will further strengthen PPD's focus and commitment to procurement that delivers results and it is looking forward to working with Queensland Purchasing on this process.
Procurement Capability and Performance Assessment Process
Using this Procurement Review and Benchmarking Process, Queensland Purchasing and PMMS have conducted a pilot review of the procurement activities within the Department of Main Roads. The process involved reviewers from QP and PMMS reviewing information provided by Main Roads. The process included reviewing the total procurement data profile as well as the policy framework and associated documentation. This was followed by a series of interviews of a selection of key stakeholders to develop a 'snapshot' of how the procurement process operates currently.
The reviewers then compared the current situation against a model of best practice and developed a road map for improvement and benchmarking again best in class.
The review of Main Roads’ procurement was conducted in June/July 2006 with a report presented to key stakeholders outlining key observations, recommendations and benchmarking results.
Queensland Purchasing intends to refine the application of the Procurement Capability Performance and Assessment Reviews and have already commenced work with a number of agencies. View the Procurement Capability Performance and Assessment Review fact sheet (PDF, 207kb).
For further information contact Maurie McKenzie, Queensland Purchasing, 3224 4082 or email: maurie.mckenzie@qp.qld.gov.au.
Graduate profiles
Anthony Thompson, QR
QR Procurement Professional Graduate, Anthony Thompson, shares his graduate procurement experiences, study journey, thoughts on procurement and vision for the future. Anthony’s QR manager Peter Ball, Supply Division Manager, Strategy, Organisational Development, and Governance discusses his involvement with the graduate program.
PU: Where did you study at university, what did you study, did you enjoy your degree?
AT: I studied at Queensland University of Technology (QUT), Bachelor of Business (Major: Management), I enjoyed the course as I had already spent twelve years in the workforce so it helped consolidate many practical experiences. I replaced many of the ‘softer’ management subjects in exchange for contract law, employment law, purchasing and procurement in the supply chain, enterprise resource system architecture (SAP), negotiation, data analysis and statistical inference, and corporate finance. I am currently furthering my studies with a postgraduate certificate in Business Administration (MBA minor: Strategy) at QUT.
PU: How did you find out about the Procurement Professional graduate program?
AT: In June 2005 at a QUT lunchtime graduate seminar presented by Melissa and Mark from Queensland Purchasing.
PU: Why did you choose procurement as a career?
AT: Procurement is such a vital component of modern business. Progressive organisations recognise that significant cost savings and scale efficiencies, when combined with a disciplined approach to automating processes, can deliver sustainable competitive advant ages
PU: Describe the procurement area in the Agency you work for, what type of projects do they work on?
AT: QR’s Supply Division is currently completing a major project to review and improve the entire procurement process from the point when QR starts thinking about procuring goods or services through to how those goods and services are paid for. It will basically examine each step in the process to identify areas for improvement, such as reducing the numbers of ways QR orders goods and services through to how we interact with vendors to expedite payment. The aim will be to improve our processes and then use technology and the functionality of SAP to support the new processes that we want to put in place.
PU: Where do you see the procurement profession heading in the future?
AT:I think there are very exciting times ahead for the whole profession. The amount of growth across Queensland in particular has also driven the demand and provided opportunities for people working in the procurement profession. The work we do in Supply in setting up and managing strategic sourcing agreements support the organisation will help to reduce costs or at least ensure the trains are running so that QR can provide competitive rail transport solutions to our customers.
PU: Where would you like your career path to lead?
AT: In the short term, I plan to experience all aspects of the procurement function within QR.
Peter Ball, Manager: Strategy, Organisational Development, and Governance, Supply Division, QR.
PU: Describe the procurement area in your agency.
PB: Supply Division is part of the Shared Services Group within QR.
Supply Division strives to offer total supply chain management for its customers, resulting in optimal procure to pay and inventory practices. It does this through providing a number of key activities which includes:
Accounts Payable
Procurement and Contracting Services
Contract Administration
Reclamation and Disposals
Inventory Management and Intervention (including cataloguing)
Business Solutions (including E-procurement) along with the administration of systems, and providing support and education to the users of this technology
Fleet Services
Supply is a very dynamic division with a management team that believes strongly in the development of our staff both and the 'value add' that the work we do provides to the rest of the organisation and community in which we live and work.
PU: What type of work is your Procurement Graduate working on?
PB: We have ensured Anthony gets the opportunity to experience all aspects of activities undertaken within Supply at some level. He has worked on our help desk and in our business solutions team in improving the use and functionality of our SRM on-line ordering system. He is currently working in one of our commodity teams and has assisted in one of our recent tender processes. And he will spend time working in our Cataloguing and Inventory areas to round off his overall understanding of our systems and processes.
PU: What are the organisational benefits of participating in the program?
PB: Participation by QR in this program assists at a number of levels. We provide an opportunity for new graduates to gain real world experience and be able to apply some of the theory in a real work situation and potentially find longer term employment. QR gains a transfer of knowledge developed by the students at university into a real work situation. Being involved in these types of programs helps develop the professional image of Supply with our staff, stakeholders and customers.
David Barry, QBuild
QBuild Procurement Professional Graduate, David Barry chats about his educational background, current procurement role, career aspirations and passion for football. Gary Martin, QBuild Manager, Procurement Capability and Development, speaks about QBuild procurement, David’s role and the overall benefits of the graduate program.
PU: Where did you study at university, what did you study, did you enjoy your degree?
DB: I studied for my undergraduate degree at the University of Queensland at the St Lucia Campus, majoring in Human Resources. I enjoyed evaluating theories developed within the business arena rather than just memorizing which is used in law and commerce.
PU: How did you find out about the Procurement Professional graduate program?
DB: I registered on the universities employment web site and found the graduate position advertised. As studying procurement is only just finding it’s way into universities I knew very little about procurement before starting with QBuild. I managed to talk to a few people about what was involved in procurement and found that the type of work would interest me.
PU: Why did you choose procurement as a career?
DB: As the procurement profession is growing at a rapid rate there is a great opportunity for procurement staff to contribute to the direction of the profession. This would give me great satisfaction in my work and give me a sense of achievement.
PU: Describe the procurement area in the Agency you work for, what type of projects do they work on?
DB: QBuild offers maintenance services, building services and building construction services throughout Queensland for both internal and external clients. When I worked in the Brisbane City region I worked on new building constructions, building renovations, floor refurbishments, consultancies and varying building maintenance. Since I have been at Brisbane Metro the focus of work has been on providing building construction, maintenance and on-demand service contracts for the Department of Housing and Education Queensland.
PU: Where do you see the procurement profession heading in the future?
DB: As organisations see the financial benefits of having procurement staff within their organisation, the profession will continue to grow and take a larger role in organisational direction and policy. Within the next 5 years, I believe that it will become more common to see procurement staff numbers increasing on company boards and other high level management positions.
PU: What do you like to do outside of the office environment, any interest sports or hobbies?
DB: I am currently managing and playing for the East’s Celts Gaelic Football club. The Queensland try outs start soon and hopefully I get selected in the squad to play in the Australasian Games.
PU: Where do you see your career path leading?
DB: Although I plan to spend the next 7-10 years within procurement or human resources, business is changing so rapidly that employees need to be flexible in their plans so to take full advantage of all opportunities that arise.
Gary Martin – Manager, Procurement Capability and Development, QBuild
PU: Describe the procurement area in your agency.
GM: In summary, the Office of Procurement, QBuild's Brisbane Head Office is responsible for procurement policy, procedures, instruction and training development. The Office exercises technical control over the procurement elements of 11 QBuild regional offices throughout the State. The Office conducts procurement operations in its own right ranging from purchase orders for head office operations to State wide tenders. The Office provides the strategic direction for procurement operations.
PU: What type of work is your Procurement Graduate working on?
GM: Our two graduates (in rotation) are being exposed to and engaged in procurement processes from the grass roots level (hands on in regional offices) to development and operations at the strategic level (head office). The work therefore ranges from mundane procurement processing (handling invoices, purchases orders and a plethora of forms/letters etc) though tender evaluation, supplier/contractor interface, systems appraisal, supplier registration and management, SOA and some contract administration. They have also engaged in research tasks that support system development and/or procedure and training development.
PU: What are the organisational benefits of the graduate program?
GM: These include: utilising smart people who have a tertiary qualification in the field (or related), have knowledge fresh in their minds, have good research and analysis skills (and experience with detailing their findings in some fashion), generally good IT skills, a desire and ability to quickly pick up information, are ready to challenge existing procedures (looking for improvements) and keen for full time employment.
Cassie Lawrence, Queensland Police Service
Queensland Police Procurement Graduate Cassie discusses the graduate program, her study and work background in Australia and abroad, and her outlook on procurement in organisations. Cassie’s supervisor, Amanda Robinson-Ilka, A/Manager, Procurement and Contracts Section, Logistics Branch talks about procurement in the Police Service, and the organisational benefits of the graduate program.
PU: Where did you study at university, what did you study, did you enjoy your degree?
CL: I completed a double degree in International Business and Arts in Asian and International Studies (majoring in International Relations) at Griffith University in June 2004. I chose this degree as it provided me with a wide variety of career options and allowed me to study a broad range of topics from International Financial Accounting and Marketing to International Relations and Business Systems of the Asia Pacific. The degree also offered an intensive language and linguistics program in which I studied Mandarin Chinese both in Brisbane and at Wuhan University in central China . Most importantly, this study has provided me with endless possibilities to work abroad and has enabled me to enjoy working and communicating across cultural boundaries- an investment in my future that I am glad to have made.
PU: How did you find out about the Procurement Professional graduate program?
CL: I found the job advert along with a number of other Queensland Government Graduate Programs advertised on Jobs Online. The fact that these programs were advertised later in the year was of great significance to my interest in this position.
PU: Why did you choose procurement as a career?
CL: Having graduated from university and jumping on the first plane to London I had grand plans to work for the Australian Government abroad. I was successful in gaining a 2 year contract with Defence Materiel Organisation as a Procurement Officer for the Aero Systems Division. Within my first week I was procuring all sorts of interesting things from FA/18 spares to Sniper Rifles. Within the next few months I also moved into procurement for the Land Systems Division which enabled me to travel to places such as Belgium and France . I suppose the attraction to Procurement as a career began here, on the more glamorous side of the fence.
PU: Describe the procurement area in the Agency you work for, what type of projects do they work on?
CL: The Procurement & Contracts Section focuses on providing a professional purchasing and contract management service by establishing Standing Offer Arrangements, conducting high-value and complex one-off purchases via the Invitation to Offer Process, undertaking contract negotiations to achieve savings/value adds for the organisation and monitoring and reviewing contracts to ensure desired outcomes are met. Within this section, my current projects include facilitating the ongoing supply of ICT Contracting services, managing the Invitation to Offer process for a number of capital works projects and general procurement transactions including management of Standing Offer Arrangements.
PU: Where do you see the procurement profession heading in the future?
CL: I can see a great deal of potential for procurement as a profession in Australia . Whilst the idea of smart procurement appears to be well entrenched and supported abroad, it seems to be an exciting time for growth in Australia. Introduction of support programs such as CIPSA and QP’s Graduate Development Program have raised the profile of procurement both in the public and private sector and assisted in the realisation of the positive impact smart procurement has on an organisation’s bottom line. I think we can expect a greater realisation of the benefits of procurement in the future and in turn see the profession grow infinitely, with procurement professionals being held in high regard.
PU: What do you like to do outside of the office environment, any interest sports or hobbies?
CL: As a true Procurement Professional to the core I love Shopping! I am also a keen sailor and enjoy competing on a regular basis at the State and National level. Golf has been one of my most recent hobbies- but becoming the next Michelle Wei is not something I can see happening in the near future.
PU: Who or what inspires you in your professional life?
CL: I am inspired by individuals who always strive to make improvements, whether it is in work processes, their employment position or life in general. Values such as honesty, hard work and determination have been entrenched in my upbringing and seeing people around me utilise these values to achieve their goals is the best inspiration one could hope for.
PU: Where do you see your career path leading?
CL: I would love to work for a multinational company or government agency that has a focus on strategic procurement. My background in theory and research would perhaps suit an analyst or policy and planning role, that allowed me to investigate markets, analyse risk and plan for the future. Like many others I would also love a job that involved travel.
AR: The procurement activities of the Queensland Police Service have undergone great change over the past decade. Where these activities were once regarded as simple purchasing and order placement, the now Procurement & Contracts Section has been highly successful in advancing our activities into the realm of procurement and contract management. This has been achieved through our ability to establish sound and effective contracts with our suppliers and undertake the ongoing management of those contracts to ensure the desired outcomes are achieved.
However, it is recognised within this organisation that procurement is a critical part of the entire supply chain. This has caused a fundamental emphasis change from contract management to vendor and client relationship management. Whilst the establishment of a sound contract remains a fundamental necessity, the development of a sound, professional and well aligned vendor/client relationship achieves even greater benefit for the Agency, their client and the vendor.
Further, the transition of less tactical and operational (transactional) purchasing functions to our shared service provider and increased emphasis on strategic procurement within this Agency has provided yet another shift in focus within our business environment.
Significant opportunities exist within both the vendor/client relationship management and strategic procurement environments for the Queensland Police Service Procurement & Contracts Section. Our focus for the future is to continue to grow our skills and expertise into these two valuable areas of professional procurement within the Public Sector.
PU: What type of work is your Procurement Graduate working on?
AR: The first six months of Cassie’s program with the Procurement & Contracts Section has seen her consolidate her already existing skills within the fairly strict and established framework of the Queensland Police Service. In this capacity Cassie has been responsible for the engagement and ongoing management of ICT contracting services engaged through an established SOA as well as via Invitation to Offer. Cassie has undertaken a number of both simple and moderately complex Invitations to Offer. Significantly, Cassie has been very competent at taking on adhoc responsibilities in relation to ongoing contract management projects and Standing Offer Arrangements where the responsible procurement delegate has been absent. This has highlighted her ability to quickly identify project status and act accordingly with minimal instruction.
The next six months of Cassie’s program shall see her challenged with more significant procurement activities and the opportunity to begin to develop her vendor/client relationships.
The Procurement & Contracts Section operates a fairly comprehensive induction training program for all new personnel taking up a position with us. This program provides an orientation of the activities of our Section, applicable policies, procedures and template documents in addition to a scope of responsibilities and activities as well as a 'tasks' list. The tasks list provides a comprehensive outline of specific projects and activities undertaken by the delegate and facilitates an opportunity for both the delegate and their mentor to make comment as to the success of the activity – this highlights any areas where additional training or guidance may be required by the delegate and enables feedback to the delegate where they have been highly successful.
PU: What are the organisational benefits of the graduate program?
AR: The Queensland Police Service’s participation in the graduate program means we are contributing to and supporting this Queensland Purchasing initiative. Furthermore, we have the opportunity to train and hopefully retain at the end of the 12 month program an important staffing resource.
Socially responsible procurement: the other part of 'Sustainable Procurement'
Sustainable procurement means buying goods and services and taking into account:
value for money;
environmental aspects;
the life cycle of products; and
social aspects, which include sustainable supply chains and the effects of issues such as labour conditions, including child labour provisions, occupational health and safety and compliance with relevant industrial and environmental regulations.
In previous editions of Purchasing Update we have focused on the environmental aspects of sustainable procurement. This article aims to answer some of the basics about 'socially responsible' procurement.
What are the socially responsible aspects of sustainable procurement?
Increasingly, governments are unlikely to want to be closely associated with companies involved in environmentally damaging production, exploitative, unhealthy or unsafe employment arrangements, shady or sharp practices in market or supply chain management such as failure to pay sub-contractors, or capital management practices that strip shareholders of asset value. There is an expectation that governments deal only with ‘good’ suppliers, and the status of a good supplier both enhances a firm’s reputation and communicates solidity and reliability.
While as purchasers, governments assess supply risk, the reputation risk of association as a purchaser with companies involved in collapse or corporate scandal should also be considered. This may require a closer investigation on the performance of suppliers by purchasers.
Are the goods manufactured overseas?
The mechanisms to support an ethical purchasing decision when dealing with domestic supply sources can be identified but the process becomes more difficult when assessment of international supply sources is required. Remember too, that assessment of international supply sources may also be required when there is substantial offshore manufacture for goods obtained from a local distributor.
What standards should be applied?
Two major issues confront the purchaser who is required to make an assessment of employment standards of an overseas supply source. First, what standard is to be applied?
Governments are unlikely to want to be associated with suppliers who use of unhealthy or exploitative labour arrangements. Some underlying principles supporting an ethical supply commitment may include:
goods are manufactured by suppliers who comply with all local labour and industrial and environmental regulation; and
suppliers comply with United Nation’s standards concerning the use of child labour.
Insistence on supply conditions equivalent to those which apply in Australia may restrict supply options to the highest priced market segment and exclude foreign sources of supply from consideration.
Identifying the matters you want to be informed about (in a defensible manner) is only the first step in establishing an ethical procurement policy for overseas suppliers. Having identified what you want to know, the difficulty of gaining accurate information arises.
As management strategies such as site visits by purchasers may not be feasible, other strategies can be adopted:
using trusted local agents to inspect, monitor and report;
commissioning audit of compliance with recognised standards; and
investigating whether the suppler is used by other ethical purchasers.
Although these may be available they are likely to represent costly strategies, and except in the case of large scale procurement, are likely to offset savings reflected in the bid price. In risk prone industries, the information cost of auditing compliance may need to be taken into consideration in the procurement decision.
In Europe, a number of ethical purchasing associations have been formed. Membership requires commitment to sourcing from ethical suppliers and the association reduces monitoring costs for each organisation by sharing information. The Ethical Trading Institute requires that supply complies with the following basic principles.
Freedom of association and the right of collective bargaining are respected.
Working conditions are safe and hygienic.
Child labour shall not be used.
Living wages are paid.
Working hours are not excessive.
No discrimination is practised.
Regular employment is provided.
No harsh or inhumane treatment is allowed.
It must be emphasised that the information sources required to be confident that an overseas supply chain is ethical is still at an early stage of development. It may well be that the most important contributions an agency can make to promote sustainable procurement policies are raising awareness, supplying information (product criteria, manuals etc) and developing and communicating (internal or external) codes of conduct and reporting initiatives to the broader field of procurement.
What can you do?
Some measures to strengthen the commitment to socially responsible procurement may include requiring tenderers/businesses to provide a statement detailing:
all applicable industrial instruments that apply to the business;
any findings against the tendering entity by a court, tribunal, commission or board of a breach of an applicable industrial instrument, including a finding of a breach in a non-confidential consent order, in the preceding 24 months;
any convictions under applicable legislation in the preceding 24 months;
any current proceedings or prosecutions in respect of a breach of an applicable industrial instrument or an offence under applicable legislation; and
remedial measures implemented to ensure future compliance with applicable industrial instruments and legislation.
The assessment of the tenderer can consider:
the seriousness of breaches or offences that are the subject of an adverse finding or conviction;
the number of adverse findings or convictions;
whether there is a pattern of repeated or on-going breaches (including any current proceedings or prosecutions before a court, tribunal, commission or board); and
whether remedial measures are commensurate with the breach and have been or can reasonably be expected to be effective in ensuring ongoing future compliance with applicable industrial instruments and legislation.
The responses should be checked.
Compliance registers – do they help purchasers?
A continuing problem has been the multiplicity of codes purporting to document compliance with ethical production standards. While there are attempts at harmonising the requirement of numerous codes, this continues to be a problem both for suppliers and purchasers. Code compliance registers also have more embedded problems. Codes of conduct focus on easy information and simplistic observations. Early codes on the use of child labour demonstrated the limits of this approach. Bans on child labour further impoverished poor households and drove children into crime and prostitution. Matters only improved once more realistic ethical standards were developed from careful surveys on the nature and impact of child labour in poor households and communities. (ID21, 2003)
Use of compliance codes requires the purchaser to have a developed understanding of what is required in a firm to meet the compliance standards and the extent to which there are is a match in values and priorities. The purchaser must also be confident in the judgement of the third party whose assessment is being used in an evaluation of the business-worthiness of a potential supplier. Does the assessor ask similar questions and consult with a similar range of parties to those that you would as purchaser? The questions that need to be answered include:
How is the assessment carried out?
Is it continuous monitoring or a one-shot assessment?
How frequently are assessments undertaken?
Does it involve a local assessment or does it rely on external experts?
Who is consulted in the assessment?
Becoming registered as compliant may also be difficult for firms in developing countries. Codes have been criticised for being over-reliant on the observation of western auditors many of whom charged fees more appropriate to developed economies than undeveloped economies. As a result, the cost of registration favoured western owned global brands over small local firms in developing economies. A similar outcome has been observed in environmental code registration where the cost of compliance and auditing was more than many environmentally sound but small companies were willing to pay.
In summary, the use of third party assessments and registered compliance with codes of conduct can represent a useful information source to the distant purchaser but must be used with care and forethought.
Security Mail Screening & the lodgement of Tenders/Offers
The implementation of security mail screening for approximately 130 Government post office boxes in the Brisbane central business district and for Emergency Services at Kedron Park has introduced changes to the way mail is delivered to these buildings. The mail screening service is provided by a contract between the State, through the Department of Public Works, and Decipha Pty Ltd (a wholly owned subsidiary of Australia Post). Australia Post and Messenger Post have been sub-contracted to provide the transport element of the service.
The changes affecting the lodgement of tender/offers should be of particular interest to Officers responsible for this part of their procurement activities. Departments and agencies affected by the new security measures must now locate their tenders/offers box in a secure area to prevent the lodgement of unsolicited packages.
Officers initiating tenders/offers still have a choice, when specifying the method of lodgement of responses to their invitations. The choice of which method of lodgement is specified will be affected by specific building security requirements. Obviously, if you choose to use the Queensland Government eTender system, and specify electronic lodgement there will no impact at all. However, other methods for lodgement will be impacted on to some degree.
Lodgement through the post (Australia Post) to the department’s or agency’s GPO Box, or PO Box will have little if any impact. This mail will be treated as normal mail and screened by Decipha. Each envelope, when cleared by the screening process, will be stamped 'Decipha Security Screened' with the current date and delivered in the normal mail delivery. Decipha will not intercept this mail and redirect it through the Decipha Tender Box Service.
Hand delivery to the department’s or agency’s address by Courier or Company representative. Prior to specifying this method of lodgement officers inviting tender/offers should check with Building Security, for building specific requirements. Generally, the new security arrangements require prior notification be given to building security staff for the direct delivery of items, particularly courier items. This process is not recommended for open tenders as verifying the legitimacy of the package becomes difficult.
Specifying delivery to the Queensland Government Tender Box , c/o Decipha Pty Ltd, 2 Duncan Street, West End QLD 4101 or posted to The Queensland Government Tender Box, GPO Box 2482 Brisbane QLD 4001. Lodgement of responses to either or both these addresses will require you to: instruct offerors accordingly; specify a closing for lodgement time between 2 pm and 4 pm on a working day; request the Tender Box Service using the 'Tender Box Request Form' providing sufficient notice to allow Decipha time to arrange to facilitate the service. Where practical, provide Decipha with five working days notice of amended closing times or dates for the lodgement of tender/offers. Decipha will acknowledge receipt of the agency request no later than 5 pm on the working day following the request date.
Note: Decipha will not accept or process tenders/offers submitted by any electronic means, eg email or facsimile.
Decipha will receive tenders/offers lodged between 8 am to 6 pm on normal working days. To facilitate this process Decipha will issue a receipt for each tender received and generate a barcode that reflects the unique tender/offer number and the sequential receipts for that tender/offer. Decipha will complete the "Register of Tenders / Offers Received by the Specified Closing Time and Date" and when required complete the "Register of Tenders / Offers Received After the specified Closing Time and Date".
The tender/offers together with completed registers, receipts and copies of consignment notes will be delivered, in a tamper evident bag, with the mail delivery the morning after the specified closing date. The Tenders bag will be addressed as specified by the inviting department or agency in the 'Request for Decipha Tender / Offer Box Service Form'. The inviting department or agency can make alternative arrangements with Decipha if special courier service is required; an additional cost may apply to this service.
In the event of a tender/offer being received by Decipha after the specified closing time and date, Decipha will advise the agency inviting to ascertain if the agency would like a tender/offer delivered by special courier service.
To ensure continuity of security, confidentiality and probity Decipha will provide the tender box service to a standard that meets or exceeds that applied by Queensland State Government officers conducting similar processes and in accordance with Australian Standard AS 4120.
The Crime and Misconduct Commission and Queensland Purchasing have released the Ethics, Probity and Accountability in ProcurementBetter Purchasing Guide.
Queensland Government employees must apply the highest levels of ethical behaviour in all areas of their work. This is particularly important in procurement which involves the expenditure of public money and is subject to more than usual public scrutiny.
Probity means integrity, uprightness and honesty. Maintaining probity in procurement involves more than simply avoiding corrupt or dishonest conduct. It means ethical behaviour that upholds public values and ensures impartiality, accountability and transparency. Transparency and accountability in procurement gives suppliers confidence to participate in the Government marketplace. An ethical culture minimises the cost of managing risks and enhances confidence in public administration.
The principles of probity in procurement are detailed in the Guide:
Fairness and impartiality
Accountability and transparency of process
Confidentiality and security of information and materials
Dealing with conflicts of interest
The Guide provides best practice advice about the procurement planning process; internal organisation and decision-making processes; security and confidentiality arrangements; provision of information to offerors; offer evaluation and selection; promoting a probity-oriented culture; and management of probity issues.
Detailed information is also provided about the managing the key areas of risk including: gifts and benefits; consistency and continuity of process; communication with offerors; conditions of offer and deadlines; invitation to offer documentation; finalising the contract; briefing and debriefing sessions; documentation and supplier probity.
Information about probity advisors and probity auditors and a probity checklist is also included in the Guide.
The Guide, together with agency Codes of Conduct and the other resources available from the Crime and Misconduct Commission and Queensland Purchasing is an essential reference for all Queensland Government employees who become involved in procurement.
Transportable fuel containers
Due of the increasing costs and risks associated with bulk fuel facilities, Queensland Purchasing has begun encouraging departments to investigate the use of portable fuel containers to satisfy small volume equipment refuelling requirements and remove the need for fuel tanks at their sites. Transportable fuel containers do, therefore, involve a number of legislated requirements that departments must also comply with.
Dangerous goods are substances or articles that may be corrosive, flammable, explosive, spontaneously combustible, toxic, oxidising or water-reactive. The transport of dangerous goods is regulated by the Transport Operation (Road Use Management – Dangerous Goods) regulations. For more information refer to Queensland Transport’s Guide transporting dangerous goods.
If the Transport Operation regulations do apply you are required to comply with numerous conditions including:
Separation from foodstuffs and incompatible substances;
Vehicle and trailer licensing requirements;
Signs and equipment for the vehicle;
Dangerous goods licensing for the driver;
Restrictions on routes and stopping points;
Availability of emergency and consignment details; and
Container assessment requirements, etc.
If the Transport Operation regulations do not apply, (i.e. carrying less than 250 litres of ULP, PULP or E10 for business use) you still have a duty to transport the goods carefully and safely. Staff, in addition to the vehicle driver, may also have responsibilities under the Dangerous Goods Safety Management and Environmental Protection Acts.
The following list outlines some of the issues you should consider when developing your own site procedures for using transportable containers:
Packaging and packaging marks must be in accordance with the ADG code and where a container is 25 litres or less, also comply with AS/NZS 2906 fuel containers – Portable – Plastics and Metal.
Staff filling portable containers or transferring fuel from them must do so in properly bunded areas or where appropriate runoff gradients and spill containment exist and be appropriately trained.
Staff, before transferring fuel, must ensure pressure release vents in containers are fully open and that the container is suitable for its intended contents and is undamaged.
Staff, the container being filled and the fuel transfer device must be earthed in an approved manner. Small containers must be place on the ground and it is recommended that staff touch the nozzle/pistol against the side of the container (away from the refueling opening or vent) immediately prior to transferring fuel .
Fuel transfer processes must be attended and monitored at all times to prevent spills and overflows.
When filling containers at a service station, the attendant must be notified before commencing fuel transfer, particularly where the capacity exceeds 25 litres or the container remains on/within the vehicle. This allows the attendant an opportunity to ensure all their site policies, including safety and EPA criteria are met. This assists in protecting any staff conducting the fuel transfers from liability in the event of an accident provided they have acted responsibly and complied with all reasonable instructions.
The insurer covering the vehicle that will be used to transport the fuel should be advised of all relevant information e.g. expected fuel, package type, quantities, frequency, route, distance.
The containers must be protected from impact, restrained and must not be carried within vehicle cabins.
Note - Managers of sites whose staff package, transport or store any quantity of Unleaded Petrol (ULP), Premium Unleaded Petrol (PULP), E10 petrol (E10) or Diesel are strongly advised to conduct their own enquires into their obligations and responsibilities, and to satisfy themselves that their operations comply with the applicable Acts, Regulations and Standards. All Directors-General of Departments were notified by letter of the risks associated with maintaining bulk fuel facilities.
Standard Purchasing Terms and Conditions – October Release
Recently the Department of Public Works has undertaken a major review of the standard terms and conditions which the Queensland Government utilises for the acquisition of Goods and/or Services (excluding ICT purchases).
The reason for this review is that the current purchasing terms and conditions have become dated, both in terms of their legal and legislative requirements on specific issues and their ability to adequately address specific and emerging procurement practices and trends. It should also be noted that the supply based is also very supportive of a single set of terms and conditions across Government as this will also reduce their costs of tendering.
The purchasing terms and conditions which have been incorporated as part of this review include:
Conditions of Offer;
Conditions of Consultancy Contract;
Conditions of Contract; and
Conditions of Supply for use in Standing Offer Arrangements.
What will be achieved as a result of this review?
The objectives of this project is to review the above documents to ensure that they adequately address the Government’s requirements and incorporate any new legislative and/or emerging procurement trends, which have arisen since the current documents were released.
Once this review and redrafting is completed, incorporated into the purchasing terms and conditions package will be the following set of documents:
Conditions of Offer;
Conditions of Contract; and
Standing Offer Arrangement Conditions
The Conditions of Offer will stipulate the terms and conditions which will regulate the pre-contractual relationship between the Agency and the Offeror. The types of clauses covered in the Conditions of Offer include:
Lodgement of Offer (including the new Mail Security Screening provisions);
Electronic submission of Offers;
Evaluation of Offers;
Commissions, Incentives and Conflict of Interest;
Acceptance and/or Rejection; and
Decision and Debriefing.
The Conditions of Contract will specify the terms and conditions of a contract which is entered into at the conclusion of the Invitation process, where the parties are entering into a direct contractual arrangement. Examples of the clauses which are contained within this document are:
Formation of Contract;
Price and Approved Expenses;
Security Undertaking;
Intellectual Property Rights and Moral Rights;
Privacy and Personal Information;
Liability (including capping);
Indemnity;
Insurances;
Licensing Requirements;
Variation;
Suspension/Termination; etc.
The Standing Offer Arrangement Conditions establish the terms and conditions of the Arrangement and any subsequent Contract/s. This document has been broken into two sections to avoid confusion. In simple terms the first part of the document (Standing Offer Arrangement Conditions) defines the terms and conditions of the Arrangement (i.e. between the Principal and the Contractor) whereas the Conditions of Contract defines the terms and conditions of any Contract/s which may be established as a result of the Arrangement (i.e. between the Agency and the Contractor). Some of the clauses contained within this document include:
Standing Offer Arrangement Conditions
Relationship between the Principal, Agency and Contractor;
Formation of the Arrangement;
Arrangement Term;
Variation of the Arrangement; and
Termination of the Arrangement.
Conditions of Contract
substantially similar to the above Conditions of Contract document.
Also as a result of this review, additional documents are being developed to assist Procurement Officers with their procurement activities. These documents include:
Invitation to Offer template;
Optional Additional Provisions (i.e. precedent / template clauses and schedules);
Procurement Terms – Defined; and
Invitation to Offer User Guide.
What are some of the benefits?
The primary benefits of the revised terms and conditions are - significantly enhancing coverage, certainty and consistency in the acquisition of Goods and/or Services through:
redeveloping the offer and contractual provisions which:
are written in 'plain English', whilst still retaining legal strength; and
are simple to understand and utilise;
new procurement provisions, which cater for emerging trends/practices (e.g new Mail Security Screening provisions);
ensuring the Agency and Contractor address the issue of Intellectual Property (IP) Rights, limitation of liability, insurances, etc;
an Optional Additional Provisions document which covers more specific issues in particular procurement projects; and
an Invitation to Offer User Guide to provide an overview of each clause and assist Agencies in using the documents for the first time;
Feedback with agencies representatives
The above documents have been reviewed and feedback provided by a number of Agency representatives. This feedback was invaluable to ensure that the revised terms and conditions adequately addressed Government Agency requirements.
Where to from here
The above documents are currently being finalised. After this has been completed, Crown Law will be asked to formally endorse the documents.
It is anticipated that the revised terms and conditions will be available in October 2006.
If you would like to know more about the revised purchasing terms and conditions, please contact: Melissa Jeffs (07) 3224 5825 or email: melissa.jeffs@publicworks.qld.gov.au.
Travel Management Unit update
The Travel Management Unit (TMU) has had a busy year renegotiating Standing Offer Arrangements for air travel. These new air arrangements have been and continue to be presented to travel procurement officers and booking officers across the State.
Queensland Purchasing is pleased to advise that MacAir Airlines has launched their Corporate Online product 'MacBiz' to not only their corporate clients but to Queensland Government travellers and booking officers.
MacBiz is a free online tool that allows MacAir business customers to plan, book and purchase ticket-less travel on MacAir services. It is a simple and efficient method that gives access to all MacAir fares and most importantly it enables the Queensland Purchasing negotiated discounted fares to be booked online. Booking online with MacAir will attract a higher level of discount and there will be no booking fees applied.
This product is an extension of the existing MacAir passenger online booking product and is a further investment by MacAir in their commitment to providing all customers with simple, seamless and ticket-less booking options.
For enquires on setting up a Queensland Government account with MacBiz or to discuss the many benefits of MacBiz for Government clients, please contact Monica Gardner on telephone: 32248133 or email monica.gardner@qp.qld.gov.au.
The TMU has also successfully facilitated the implementation of the Qantas American Express Business Travel Account (QAEBTA) across whole of Government, for Statutory Authorities and Non-Government Organisations of the Queensland Purchasing Air Travel Arrangements. Queensland Purchasing’s QAEBTA users should now be regularly receiving their Monthly Statements for payment. The issuing of these statements was complemented with American Express providing training on the reconciliation of the statements.
In relation to the Travel System the TMU has been involved in extensive ongoing design and development discussions and workshops with the travel system supplier, HRG Australia (formerly known as BTI Australia). The system is at a stage of development which has enabled the TMU, Queensland Purchasing and other selected areas of the Department of Public Works to test aspects of the accommodation booking and travel entitlements claim processes.
The Queensland Government eTender site has a new help feature. Queensland Purchasing is developing a series of electronic web training Modules relating to the Queensland Government Marketplace (QGM) eTender System which will assist users in utilising the system as part of their Invitation process. The electronic web training series includes an online demonstration video and a printable user guide on various aspects of the system. Module one is now available.
The Modules included in this series are:
Module 1 – Adding and Maintaining an Open Tender;
Module 2 – Adding and Maintaining a Select/Open Eligible Tender; and
Module 3 – Closing Tender Process.
New users requiring access to the eTender system will need to contact their Agency Supervisor. If you are unsure who your Agency Supervisor is, please contact Queensland Purchasing who will be able to provide you with this information.
If you require any further assistance or have any feedback regarding the eTender system or web training series, please contact Darren Mulvenna on (07) 3224 8053 or email betterpurchasing@qp.qld.gov.au.
Commodity Group: Office supplies, Desktop printing and consumables
Queensland Purchasing has developed strategies that aim to optimise the use of office supplies and desktop printing across the sector.
The office supplies strategy comprises a number of recommendations designed to save money. One of the key recommendations is for agencies and Shared Service Providers (SSPs) to work to develop an agreed basket of stationery goods comprising more competitively priced generic items. Queensland Purchasing has developed a sample of a basket of goods called the Government Office Supplies Range (GOSR) comprising four hundred and six (406) items which is designed to reflect the majority of office supplies usage. Queensland Purchasing can provide advice on the use of the GOSR and additional procurement practices that will minimise expenditure for existing or assist in the implementation of new arrangements for office supplies.
Queensland Purchasing has also developed a Desktop Printing Strategy that aims to optimise demand for document production by utilising the most effective output device. Desktop printing is defined as all forms of printing generated from the desktop and is produced by a number of devices ranging from laser printers to complex multi-function devices. A desktop printing strategy is a plan of action designed to minimise the cost of an organisation’s desktop printing without adversely impacting on the business operations of the organisation.
Queensland Purchasing has developed a number of resources to assist agencies/SSPs to undertake desktop print reviews and to develop desktop printing strategies. A desktop printing guideline is available, that provides key information such as total cost of ownership and matching desktop printing demand to user requirements. Queensland Purchasing has also implemented a whole-of-Government Standing Offer Arrangement (SOA) QP650 – Panel of Providers for Desktop Print Solutions. The Panel of Providers has the capability and experience to assist all agencies and SSP’s to identify, implement and manage their desktop printing strategies.
The creation of desktop printing strategies is aligned with the development of a new business machines arrangement to replace the existing SOA-652 Photocopiers and Multi-function Devices (MFD’s). The finalisation of desktop printing strategies will better equip agencies/SSPs to understand the complexities of the market and range of devices before procuring photocopiers or MFD’s from the existing SOA-652 or upcoming new business machines arrangement.
Toners facts sheet
Lastly in line with the use of office and desktop printing consumables, a toner facts sheet is now also available.
Queensland Purchasing has received feedback from agencies detailing the number of 'mistaken' enquiries generated by publishing Forward Procurement Schedules on the Queensland Government Marketplace website. These enquiries are commonly from suppliers who are under the mistaken belief that a current tender opportunity exists.
This is despite our best efforts to help suppliers understand that Forward Procurement Schedule items are not tender opportunities.
Forward Procurement Schedules are an advance notice to the marketplace in the form of a list of significant procurements for projects, goods and services an agency has identified for the current year. The schedule does not act as a guarantee that the agency will plan to purchase all or any of the listed projects, goods or services.
For items on the schedule, agencies may not have yet conducted its market research or prepared a significant procurement plan including how it will approach the market. This research and subsequent plan will determine when to go to the market and whether invitations will be publicly advertised, invited from a select list or by direct negotiation.
As the schedules provide important information to suppliers and need to be kept up-to-date by agencies. It is also important for agencies to manage enquiries from suppliers in a helpful manner as this will assist in the development of a strong and competitive supply base.
In the first instance if you have a question about forward procurement schedules, consult with your procurement section, if you still have questions contact Bob Orchard at Queensland Purchasing betterpurchasing@qp.qld.gov.au.
Queensland Purchasing – Out and About!
Procurement Service’s Queensland Purchasing Buyer’s forums allow government officers involved in purchasing to meet and network, share information about procurement, and meet Queensland Purchasing staff. After regional visits to Rockhampton, Mackay and Townsville, to more dates are planned for 2006.
Where and when?
Bundaberg - October 13 will be now held in Hervey Bay - date & venue TBA
Brisbane - Tuesday, October 31
We always welcome feedback at the forums, Kathryn Turner, Rockhampton City Council says, "I found the day very informative and the information on the CD is very useful. I enjoyed the presentations from the department purchasers as this is the reality we deal with on a daily basis and any ideas for improving supply chain and logistics is essential. Looking forward to the next event."
If you would like to attend a session, please email Karen Askew at karen.askew@qp.qld.gov.au or phone 3235 4329 to register your interest.
Quality Assurance
Queensland Purchasing’s Supplier Quality Management Systems Certification Services (SQCS) team has released a new information flyer, to see how the team can assist your agency view the SQCS team flyer.
The second week of August 2006 saw the introduction of the new arrangement for Salary Sacrifice Bureau Services.
Remuneration Services (Qld) Pty Ltd was successful in retaining the contract for a further initial period of 3 years.
Currently 60742 staff participate in salary packing and of these, 27166 only package superannuation. More than 7200 employees Salary Sacrifice a motor vehicle under a Novated Lease.
Due to new pricing that was to come into play, an off-pay week was chosen to commence the arrangement.
There have been significant price decreases for some services.
Superannuation has been changed from an upfront post tax payment to a pre tax fortnightly payroll deduction.
As annual invoicing comes up, each participant is being advised that the payment method is being changed and they need do nothing more for the new payment process to start from their anniversary date.
The fee for packaging a laptop computer/PDA has been considerably reduced. This reduction, together with the recently waiver of the requirement to obtain financial advice, makes this item a much more attractive proposition. Under ATO legislation, you are entitled to package one laptop computer per salary packaging year.
For further information visit the QGBC or contact Peter Broadhurst from Queensland Purchasing on Phone: (07) 3235 4831 or peter.broadhurst@qp.qld.gov.au.
Commercial Furniture Supply Arrangements
Brisbane region
Queensland Purchasing has approved an extension of the Standing Offer Arrangement QP977 Commercial Office Furniture - Brisbane Region. This arrangement has two (2) suppliers Bendix Industries (Qld) Pty Limited and Commercial Furniture Australia. The arrangement expiry date is 31 May 2007.
Country regional area arrangements
Continuation of the Commercial Office Furniture supply arrangements in the country regional areas has also been approved. Current suppliers have been advised and given the opportunity to update their products and pricing. A soon as this information is provided and accepted by Queensland Purchasing the Queensland Government Buyers Catalogue (QGBC) will be updated.
Unlike the Brisbane arrangement the regional arrangements have the flexibility to allow new suppliers to apply to Queensland Purchasing for inclusion on the arrangement for the region in which they have a presence. Queensland Purchasing will be seeking offers from new suppliers in each of the regions and would be grateful for any assistance you can provide in identifying new suppliers in your region.
The current arrangements include the following suppliers:
SOA No.
Supplier
Region
QP967
Castine Pty Ltd ATF Hess Family Trust
T/A Clem Nicol
Toowoomba
Downs Office Equipment & Supplies
QP968
Corporate Express
South Coast
Empire Business Furniture
QP969
Click's Solutions
Sunshine Coast
Moorevann Pty Ltd the trustee for the Moore Family Trust
T/A Bizfurn Express
QP970
Corporate Express
Maryborough
QP971
Corporate Express
Bundaberg
QP972
Corporate Express
Gladstone
QP973
Corporate Express
Rockhampton
Empire Business Furniture
Cross Printery Pty Ltd T/A Sisley's Office Choice
QP974
Corporate Express
Mackay
Cross Printery Pty Ltd T/A Cross Office Choice
QP975
Corporate Express
Townsville
Nardic Print Services
Empire Business Furniture
Townsville Office Furniture
QP976
Cairns Stationery Supplies
Cairns
Corporate Express
McLeods Office Furniture
For further information visit the QGBC or contact Morrie Griffin Queensland Purchasing Phone: (07) 3224 8788 or morrie.griffin@qp.qld.gov.au.
Standing Offer Arrangement (SOA200) - Office Administrative Employment Agency Staff and Temporary and Permanent AO1 & AO2 Level Administrative Employees
SOA 200 commenced on 1 June 2003 and was due to expire on 31 May 2006. The arrangement has been extended for a further period of four (4) months, with a new expiry date of 30 September 2006.
Queensland Purchasing is now in the process of completing Invitation to Offer Documents for the new arrangement period.
Final draft Invitation to Offer Documents have been reviewed by the SOA Evaluation Committees, in both Brisbane and Regional Areas.
It is expected Invitations to Offer will be released into the marketplace sometime in September/October 2006.
Information on current SOA 200 suppliers is available in the form of a 'User Friendly Guide'.
Further information on either the QGBC or the 'User Friendly Guide' can be obtained by contacting Leah Walker from Queensland Purchasing on Phone: (07) 3404 3731 or Email: leah.walker@qp.qld.gov.au.
Last updated Sept 2006
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