What is Coordinated Procurement?
Coordinated Procurement is a government initiative to establish whole-of-government arrangements for goods and services in common use to maximise market benefits and deliver efficiencies and savings. Where established, coordinated procurement arrangements are mandatory for agencies subject to the Financial Management and Accountability Act 1997.
The Government wants to reduce the amount of money spent by departments and agencies procuring goods and services by aggregating the volumes purchased across the whole of the government to attract better prices from suppliers.
Coordinated procurement aims to obtain better pricing through aggregation of government purchasing power.
The broad aims of a whole-of-government approach to the coordination of procurement contracting are to:
- Reduce the price of supply to agencies;
By obtaining better pricing through aggregating government purchasing,
- Continue to meet the business needs of agencies;
By establishing and maintaining procurement arrangements that satisfy agencies’ business needs,
- Contribute to a competitive and viable industry;
By establishing reasonable arrangements that promote a competitive and viable industry,
- Establish fair, equitable and transparent processes;
Involve agencies and industry in the CPC the process through consultation and regular communication, and
- Optimise government savings through price reductions, improved efficiencies and promotion of behavioural change.
To decide which goods or services are suitable for a coordinated procurement arrangement Finance conducts a scoping study to examine agencies’ needs, the industry and market, administrative arrangements, volumes and values as well as consulting with industry and agencies.
Where a good or service is considered suitable, Government agreement will be sought to conduct a tender process to establish a whole-of-government arrangement.
Through the scoping study Finance will also identify and promote better practice and identify administrative arrangements that promote efficiencies.
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