Procurement Connected Policies
Principles
- The application of section 44 of the Financial Management and Accountability Act 1997 (FMA Act) and FMA Regulation 9 to procurement undertaken by FMA Act agencies means the procurement must not be inconsistent with the policies of the Commonwealth.
- Table 1 (Procurement Connected Policies) lists the policies of the Commonwealth that relate to procurement. It does not preclude officials applying any other Government policy that may relate directly to a specific project or procurement.
- Policy Departments (the agencies originating the respective policies) are responsible for the implementation of all aspects of their policy (or policies) listed in Table 1.
- Table 2 details other obligations that need to be considered in procurement.
- Officials are responsible for informing themselves of the policies that apply to a specific procurement. They should refer to their agency’s Chief Executive’s Instructions for guidance and, if needed, approach the relevant Policy Department for further information on a specific policy.
- For further information and advice on policies that interact with procurement, consult the relevant Policy Department (refer to the relevant website links in Table 1 in the first instance).
- Commonwealth Authorities and Companies ACT 1997 bodies are subject to policies where applied under a General Policy Order.
| Policy / Guidance | Policy Description | Policy Department | Contact Point | Application / Threshold |
|---|---|---|---|---|
| Australian Industry Participation | ||||
Australian
Industry Participation Plans for Government Procurement [
|
The Australian Industry Participation (AIP) National Framework applies to major Commonwealth Government procurements (generally above $20 million). Tenderers for certain Commonwealth procurements are required to prepare and implement an AIP Plan. | DIISR | 02 6213 7586 | Applicable to large Commonwealth tenders generally above $20 million. |
| Coordinated Procurement | ||||
| Whole-of-government procurement arrangements are being put in place for some goods and services. Their use is mandatory for FMA Act agencies. | Finance | coordinated contracts@finance. gov.au |
No minimum threshold. | |
| Employment and Workplace Relations | ||||
|
The Fair Work Principles require Commonwealth entities to obtain information from tenderers about their compliance with their obligation to ensure fair, cooperative and productive workplaces, and precludes Commonwealth entities from contracting with suppliers in defined circumstances. |
DEEWR | 1800 064 516 | Applies to all covered procurements.
|
The
National Code of Practice for the Construction Industry and Implementation
Guidelines [
|
Applies to all Commonwealth construction projects, and indirectly funded projects where the Australian Government’s contribution is:
|
DEEWR | 1300 731 293 | No minimum threshold for Commonwealth-funded construction projects. |
| Environment | ||||
Energy
Efficiency in Government Operations [ ] |
The policy aims to reduce the energy consumption of Australian Government operations with particular emphasis on building energy efficiency. It commits to a progressive improvement of overall agency energy performance through annual energy intensity reporting, the use of Green Lease Schedules, and minimum efficiency requirements. | DCCEE | govoperations@ climatechange.gov.au Government Energy Efficiency Team 02 6159 3123 |
No minimum threshold. |
| National
Packaging Covenant [] |
The Australian Government is committed to the National Packaging Covenant and is actively participating in its development and implementation. The Covenant was signed by the Australian Government in November 2005. It aims to reduce waste generation and environmental impacts of packaging. | DSEWPaC | productstewardship @environment.gov.au |
No minimum threshold. |
| National
Waste Policy [] |
The National Waste Policy aims to avoid the generation of waste; reduce the amount of waste (including hazardous waste) for disposal; manage waste as a resource, ensure that waste treatment, disposal, recovery and reuse is undertaken in a safe and environmentally sound manner; and contribute to broader economic, environmental and social goals. | DSEWPaC |
wastepolicy@ environment.gov.au |
No minimum threshold. |
| Australian
Government ICT Sustainability Plan 2010-2015 [] |
The Plan requires agencies to adopt mandatory environmental standards for ICT acquisitions and to strengthen management processes for environmental risks and issues such as managing ICT energy use, carbon emissions and waste. There are also agency performance measures and targets to drive environmental performance and sustainability improvement across the Australian Government. | DSEWPaC | sustainableICT@ environment.gov.au Government ICT Sustainability Team (02) 6274 1003 or (02) 6274 1799 |
Applicable to ICT procurements. |
| Financial Framework | ||||
| Commonwealth
Fraud Control Guidelines [] |
The Commonwealth Fraud Control Guidelines provide national minimum standards to assist agencies in carrying out their responsibilities to combat fraud against their programs including outsourced functions and programs. | AG | 02 6141 2763 | No minimum threshold. |
Issuing
and Managing Indemnities, Guarantees, Warranties and Letters of Comfort [ - 141 KB] |
These guidelines advise officials of their responsibilities when considering entering into arrangements involving issuing indemnities, guarantees, warranties or letters of comfort on behalf of the Commonwealth. They also reinforce the importance of risk management strategies and awareness regarding the use of such instruments. | Finance | finframework@ finance.gov.au |
No minimum threshold. |
Procurement On-Time Payment Policy for Small Business (This replaces Finance Circular 2008/10 Procurement 30 Day Payment Policy for Small Business for procurement contracts entered into from 1 September 2012)
|
For payments valued up to $5million (GST inclusive) to small business, Financial Management and Accountability Act 1997 (FMA Act) agencies are to agree maximum payment terms not exceeding 30days. Additionally, for procurement contracts with small business valued up to $1 million (GST inclusive), the policy requires agencies to pay penalty interest on request from small business for payments exceeding the maximum payment terms up to 60 days, and automatically to the small business for payments exceeding 60 days. |
Finance | procurementagency advice@finance. gov.au |
Applies to small businesses for payments up to A$5 million. Agencies are to pay interest on late payments for contracts up to A$1 million. |
| Australian Government Foreign Exchange Risk Management Guidelines and Finance Circular | These guidelines articulate government policy on foreign exchange risk management where payments are made in currencies other than Australian dollars. | Finance | finframework @finance.gov.au |
No minimum threshold. |
| National
Public Private Partnership Policy Framework and Guidelines [] |
Public Private Partnership principles must be considered when developing procurement proposals which scope the use of private financing and assessment, and approval processes for such proposals. | Infrastructure Australia | www.infrastructure. gov.au |
Procurements with capital valued above $50 million. May apply to procurements below the threshold if suitable. |
| Competitive Neutrality Guidelines for Managers | Competitive neutrality requires that significant Government business activities should not enjoy net competitive advantages over their private sector competitors simply by virtue of public sector ownership. | Finance and Treasury | finframework@ finance.gov.au |
No minimum threshold. |
| Information, Communications and Technology | ||||
| Limited Liability in Information and Communications Technology Contracts | This Finance Circular provides guidance on the capping of liability when entering into Information and Communications Technology (ICT) contracts. | Finance | procurementagency advice@finance. gov.au |
No minimum threshold. |
| ICT
SME Participation Procurement Policy[] |
The SME Participation Procurement Policy outlines requirements for Australian Government ICT contracts valued $20 million and above to include, as a general rule, a minimum level of SME participation of 10 per cent of the contract value for ICT hardware procurements, and 20 per cent of the contract value for ICT services procurements. | DIISR | ictsmeprocurement @innovation.gov.au |
Applicable to ICT procurements from SMEs valued at or above $20 million. |
| International Obligations | ||||
| Trade
Sanctions [] |
On rare occasions trade sanctions may apply to goods that an agency may wish to procure. | DFAT | Sanctions@dfat. gov.au |
No minimum threshold. |
| Legal | ||||
| Legal Services Directions (LSDs) establish the framework within which government legal services must be delivered. Paragraph 9A.1 and Appendix F of the Legal Services Directions 2005 sets out the rules and obligations Commonwealth agencies must adhere to when procuring legal services. This includes using a common form tender package (including a standard Request for Tender and Deed of Standing Offer) when tendering for legal services. | AG | olsc@ag.gov.au | No minimum threshold. | |
| Intellectual
Property Principles for Australian Government Agencies [] |
The Statement of IP Principles sets out a policy for management of intellectual property (IP) by Australian Government agencies. The IP Principles cover a full range of issues relevant to effective management of IP, including procurement, record keeping, industry development and broader innovation policy, and public access. | AG | 02 6141 3300 | No minimum threshold. |
| Security | ||||
| Protective Security Policy Framework [] |
Agency heads are responsible for ensuring official resources, especially classified information, are secured from unacceptable risk, including when services are delivered by external service providers. The Protective Security Core Policy and mandatory requirements direct agencies to ensure that contracted service providers comply with the Protective Security Policy framework. | AG | No minimum threshold. | |
| Australian Government
Information, Communications and Information Systems Security Manual [] |
ACSI 33 sets access control standard for In-Confidence information. It recommends use of Secure Socket Layer to protect transmission of information over any network, but particularly the Internet. | DSD | www.dsd.gov.au | No minimum threshold. |
| Social Inclusion | ||||
| Commonwealth
Disability Strategy [] |
The Commonwealth Disability Strategy was introduced to assist Government agencies meeting their obligations under the Disability Discrimination Act 1992. Its purpose is to make sure that people with disabilities have the same level of access to all Australian Government policies, programs and services as other members of the Australian community. | FaHCSIA | CDS@fahcsia.gov.au | No minimum threshold. |
Equal
Opportunity for Women in the Workplace – Contract Compliance Policy [
|
The Contract Compliance Policy promotes gender equality in the workplace by: (1) educating smaller employers; and (2) requiring larger employers to put in place and report on a program for removing systemic barriers to equality for men and women. Click here for EOWA’s list of non-compliant organisations. |
EOWA | EOWA’s Compliance Advisory Team 02 9448 8500 |
No minimum threshold. |
| Indigenous
Opportunities Policy [] |
Tenders, where the expenditure is over $5 million ($6 million for construction) in a region with a significant Indigenous population, are required to develop an Indigenous Training, Employment and Supplier Plan as part of their application. Agencies are required to consult with DEEWR when planning a procurement activity that exceeds the policy threshold. | DEEWR | IOP@deewr.gov.au | Applies to procurements over $5 million ($6 million for construction). |
| Policy / Policy Guidance | Policy Description | Policy Department | Contact Point |
|---|---|---|---|
| International Obligations | |||
Obligations under International Agreements in Government Procurement |
Obligations under Australia’s Free Trade Agreements are incorporated into, and will be met by following, the CPGs. An example of an international obligation is the Mandatory Procurement Procedures. | Finance and DFAT | procurementagencyadvice@finance.gov.au |
| Transparency | |||
Standard Contract Clauses to Provide ANAO Access to Contractors´ Information
|
Agencies must consider including a provision in contracts that enable access to contractors’ records and premises by the Australian National Audit Office. Model access clauses are provided. | Finance | procurementagencyadvice@finance.gov.au |
| Mandatory Reporting Requirements for Procurement Activities | Agencies are to:
|
Finance | procurementagencyadvice@finance.gov.au |
Requirements
for Annual Reports for Departments, Executive Agencies [ ] |
A core set of information is required in annual reports to ensure that accountability requirements are met and to provide consistency for readers. | PM&C | www.dpmc.gov.au [] |
| Government
Guidelines for Official Witnesses before Parliamentary Committees and Related
Matters [] |
Public servants are required to assist Ministers to fulfil their accountability obligations by providing full and accurate information to the Parliament about the factual and technical background to policies and their administration. | PM&C | www.dpmc.gov.au [] |
| Privacy | |||
Privacy
Obligations for Commonwealth Contracts [
|
The Privacy Act 1988 (s95B) imposes obligations on Commonwealth agencies when entering into contracts to provide services to or on behalf of the agency to apply the information privacy principles (IPPs). The information sheet provides a link to model contract clauses for the protection of personal information. | OPC | 1300 363 992 |
| Records Management | |||
| Records Issues
for Outsourcing [] |
Agencies contracting out the provision of services must, under the Archives Act 1983, ensure the arrangements include records management practices which meet Australian Government standards and requirements. Records Issues for Outsourcing provides guidelines for agencies about their responsibilities when employing contractors. It includes GDA 25 authorising the transfer of relevant agency records to service providers. | NAA |
or recordkeeping@naa.gov.au |
Record Requirements for Agencies |
To understand what records should be created during procurement processes and how they should be managed, the Archives Act 1983 requires that you consider requirements to make and keep records as evidence of business activity, business-related risks, and other factors. These policies and guidelines provide advice on managing the records created during procurement: |
NAA |
or recordkeeping@naa.gov.au |
| Confidentiality | |||
Confidentiality in Procurement Additional Reporting on Confidentiality Confidentiality throughout the Procurement Cycle
|
To identify and manage confidential information whilst ensuring an accountable and transparent procurement process. | Finance | procurementagencyadvice@finance.gov.au |