Operation

3.1 Governance of the procurement function

This Policy establishes governance structures for procurement at the whole-of-government and agency levels.

Leadership for Queensland Government procurement will be discharged through the Queensland Government Chief Procurement Office and the Procurement Board of Management. The Policy promotes collaboration and consultation through mechanisms including the State Procurement Advisory Council, the Procurement Board of Management, and the Procurement Council.

The Policy reinforces the obligations of accountable officers to manage their agencies efficiently, effectively and economically, and to be accountable for public resources.
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3.2 Procurement planning

An important preliminary part of the deliberative process of achieving the objectives of this Policy is procurement planning. Procurement planning facilitates a structured and considered approach to the management of procurement activities.

Procurement planning must be based on an analysis of the agency’s purchasing patterns and supply markets. Agencies should use this analysis in an effort to identify possible opportunities for local suppliers.

Planning must be undertaken at both the corporate level and in relation to significant individual procurement projects or aggregated categories of expenditure classed as significant procurement.
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3.2.1 Corporate Procurement Plans

Every agency must prepare a Corporate Procurement Plan which links the agency’s procurement to its Strategic Plan and covers the same period as the agency’s Strategic Plan. This Plan must be approved by the agency’s accountable officer, and reviewed annually.

Corporate Procurement Plans set out:

the objectives to be achieved through the agency’s procurement activities consistent with the objectives of this Policy
how the agency will meet its specified objectives
mechanisms through which the achievement of the agency’s procurement objectives will be measured.

As a minimum, the Corporate Procurement Plan must contain a balance of strategic and operational information in relation to the following areas:

procurement objectives
the procurement profile for the preceding 12 month period
procurement systems, processes and practices, including management and resourcing arrangements for the procurement function
procurement strategies that will achieve the stated procurement objectives
procurement measures, targets, and annual comparisons against targets.

Procurement strategies must address, inter alia, the skills development of procurement personnel and other staff involved in procurement. They must also cover how the agency will maintain sufficient capability to properly manage its procurement operations, including scope of authority and the roles of agency personnel involved in procurement.

Budget sector agencies must prepare the Corporate Procurement Plan in accordance with the methodology prescribed by the Queensland Government Chief Procurement Officer, from time to time. The methodology will address the expected depth of analysis across the factors influencing procurement effectiveness and efficiency, and incorporate relevant Policy requirements set out in this clause.

Budget sector agencies must provide approved Corporate Procurement Plans to the Queensland Government Chief Procurement Office by 30 June each year.

All agencies must make draft Corporate Procurement Plans available to the Department of Tourism, Regional Development and Industry, as deemed necessary by the department.
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3.2.2 Significant Procurement Plans

Every agency must prepare Significant Procurement Plans for approval by the accountable officer or delegate, when purchasing goods, services and capital projects that have been identified by the agency as being high expenditure and/or for which there is a high degree of business risk. Significant procurement projects can be significant single, one-off procurements or a number of smaller projects in a category of like goods and/or services which when combined, are considered significant. Agencies should not over aggregate goods and services to minimise the number of Significant Procurement Plans to be prepared.

As a minimum, these Plans must:

establish the objectives to be achieved from the procurement
specify how the procurement supports the achievement of agency procurement objectives
analyse internal demand for the procurement
establish the status of the supply market relevant to the area of procurement and the likely impact the procurement will have on the market
evaluate potential buying strategies and identify the preferred strategy to be followed
specify measures for the evaluation of the implementation of the supply strategy.

Agencies must document each element of the significant procurement planning process. This includes stating reasons for limiting the scope of, or not undertaking, certain elements (for example, in emergency procurement situations).

The Department of Tourism, Regional Development and Industry may consult with agencies in relation to the development of certain Significant Procurement Plans as deemed necessary by the Department.

Each year, every agency must publish and maintain a Forward Procurement Schedule on the Queensland Government Chief Procurement Office website, outlining anticipated significant procurements.
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3.3 Procurement measurement

The regular measurement of procurement activities provides the Government and its agencies with high quality procurement information to improve decision making, and enables an assessment to be made about the progress towards meeting the objectives of the State Procurement Policy.

Accordingly this Policy requires agencies to ensure that a framework for procurement measurement and reporting is in place. Each agency’s Corporate Procurement Plan must contain a section on measurement, which contains procurement measures and targets as approved by the accountable officer, and an annual comparison of actual results against targets.

Each year, budget sector agencies must adopt and report on certain whole-of-government measures as prescribed by the Queensland Government Chief Procurement Officer, from time to time.

The Queensland Government Chief Procurement Officer may seek procurement measurement information from Government Owned Corporations each year, through shareholding ministers.
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3.4 Procurement assessment

Assessments of procurement capability and performance facilitate improvements in procurement outcomes, including savings.

Each budget sector agency must ensure that:

commencing 1 January 2008, an assessment of their procurement capability and performance is undertaken at least once every three years
the procurement assessment tool provided by the Queensland Government Chief Procurement Office is used to conduct the first assessment
any requests made concerning procurement capacity and capability improvement initiatives by the Director-General, Department of Public Works, acting on the recommendation of the Procurement Board of Management, are implemented.

Agencies must undertake their first review in cooperation with the Queensland Government Chief Procurement Office. Following the first review, agencies may continue to use the services of the Queensland Government Chief Procurement Office, or may use a suitably qualified external provider approved by the Queensland Government Chief Procurement Officer.

Budget sector agencies must provide information to the Queensland Government Chief Procurement Office in relation to procurement assessments as requested.

As part of a commitment to continuous improvement and better practice, each Government Owned Corporation and statutory body should consider implementing periodic independent assessments of procurement capability and performance.
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3.5 Sustainable procurement

The Queensland Government is committed to protecting the environment and doing business with ethical and socially responsible suppliers.

Agencies must integrate the practice of sustainability into the procurement of goods, services and construction.

Budget sector agencies should seek to progressively increase the proportion of their procurement expenditure on sustainable goods and services from year to year. To achieve this, budget sector agencies must set, measure and report on sustainable procurement targets. The selection of targets should align with the agency’s strategic and operational procurement objectives.

Budget sector agencies must report annually on sustainable procurement targets and include sustainable procurement strategies and targets in their Corporate Procurement Plan.

Budget sector agencies must comply with certain product based targets as mandated by the Queensland Government Chief Procurement Officer, from time to time.

As part of a commitment to continuous improvement and better practice, Government Owned Corporations and statutory bodies should seek to progressively increase the proportion of their procurement expenditure on sustainable goods and services from year to year. To achieve this Government Owned Corporations and statutory bodies should consider setting, measuring and reporting on sustainable procurement targets. The selection of targets should align with their strategic and operational procurement objectives.

Refer also Operational Concept: Sustainable procurement.
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3.6 Devolution of certain procurement decisions and associated budgets

Each agency must devolve to the lowest practicable geographical level, procurement decision making and associated budgets for goods and services that the agency assesses are low expenditure and for which there is a low degree of business risk.

This does not preclude devolution of procurement decision making and associated budgets for goods and services that are not in this category.
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3.7 Agency Procurement Procedures

The accountable officer must issue Agency Procurement Procedures consistent with this Policy which guide officers concerning procurement systems and practices within the agency.

3.8 Consistency with other obligations

This Policy is to be construed as subject to and limited by other legislation, policy and agreements including but not limited to the following:

Australia New Zealand Government Procurement Agreement (ANZGPA)
Chapter 15: Government Procurement, of the Australia-United States Free Trade Agreement (AUSFTA)
National Competition Policy and related legislation and agreements including the Trade Practices Act 1974 (Cth).

All agencies must comply with the ANZGPA. Schedule B sets out the circumstances in which agencies listed within the Schedule must comply with the Government Procurement chapter of the AUSFTA.

Where an agency’s procurement is in breach of applicable international trade agreement obligations, the Director-General, Department of Public Works may require agencies to terminate or suspend the non-compliant procurement process, following consultation with the Director-General, Department of the Premier and Cabinet and the Australian Department of Foreign Affairs and Trade.

The Government Procurement chapter of the AUSFTA does not apply to any form of preference to small and medium enterprises (SMEs). A procurement decision which aims to give preference to SMEs in the context of the AUSFTA, must be documented in a Significant Procurement Plan.

Other policies relevant to government procurement as determined by Cabinet from time to time are set out in Schedule C.

Agencies should be mindful of key government policies concerning regional and industry development, and employment and training that impact on government procurement.
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3.9 Improving access to government procurement opportunities

Agencies must improve access to government procurement opportunities by publishing on the Queensland Government Chief Procurement Office website:

the annual Forward Procurement Schedule
all open tender opportunities.

Budget sector agencies must also publish details of all awarded contracts and standing offer arrangements with a value of $100,000 and over on the Queensland Government Chief Procurement Office website. Details to be published include:

the name and address of the procuring entity
a description of the goods or services procured
the date of award or contract date
the contract value
the name and address of the successful supplier
the procurement method used.

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3.10 Intra-governmental procurement activities

This Policy preserves the right of each agency to deal directly with competitively neutral commercialised business units of their own agency or other agencies that are acting for the Crown in the same right of the State of Queensland.

3.11 Common use supply strategies

A Significant Procurement Plan, endorsed by the Queensland Government Chief Procurement Officer, and approved by the Procurement Board of Management, will be prepared for common use whole-of-government supply strategies.

During the development of each Significant Procurement Plan, consideration will be given to the requirements of buying agencies, and characteristics of markets. These plans will consider opportunities for competitive regional suppliers. Supply arrangements may be mandated in some areas and optional in others.

Where common expenditure categories are identified which cross two or more agencies, affected agencies must act in partnership. The Queensland Government Chief Procurement Officer will identify a lead agency to consolidate and/or transition requirements under a single supply strategy as soon as practicable.

The Director-General, Department of Public Works, acting on the recommendation of the Procurement Board of Management, may require budget sector agencies to participate in certain common use supply strategies where there are opportunities to return savings or other benefits to the Government.

Budget sector agencies will be consulted as part of the development of mandatory arrangements.
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3.12 Complaint processes

Agencies must develop and maintain fair, equitable and non-discriminatory procedures for addressing complaints and concerns raised by suppliers or members of the community about the conduct of agency procurement activities.

In the first instance, complaints about the conduct of procurement activities must be referred to the agency concerned.

When it is not possible to resolve a complaint with the agency concerned, then the complainant may seek the assistance of the Queensland Government Chief Procurement Office. The Queensland Government Chief Procurement Office can help to resolve the complaint by facilitating open communication between the parties. The Queensland Government Chief Procurement Office cannot override legally binding contracts.

External independent review of a procurement complaint is available through the Queensland Ombudsman. The Queensland Ombudsman can investigate the administrative actions of agencies and make recommendations to the agency for rectification.

Allegations of official misconduct in relation to procurement must be referred to the Crime and Misconduct Commission as required by the Crime and Misconduct Act 2001.

The Government Owned Corporations Act 1993:

excludes company Government Owned Corporations from the application of the Ombudsman Act 2001, and partially applies the Ombudsman Act 2001 to statutory Government Owned Corporations
excludes company Government Owned Corporations from the application of the Crime and Misconduct Act 2001.

Where applicable, Australian Government organisations may also deal with complaints about procurement:

Australian Competition and Consumer Commission, regarding contraventions of the Trade Practices Act 1974 (Cth)
Australian Securities and Investments Commission, regarding contraventions of the Corporations Act 2001 (Cth).

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