Audience
This guidance is relevant for all non-corporate Commonwealth entities (NCEs). It is particularly relevant for Chief Financial Officers and Chief Procurement Officers and their staff and officials who are responsible for NCEs’ internal controls and processes.
Corporate Commonwealth entities (CCEs) are encouraged to refer to this guidance.
Purpose
This guidance document is developed for entities undertaking and managing procurements and contracts in high-risk environments. It sets out key law enforcement and intelligence agency resources that procuring entities can utilise to better understand the risks involved in procurements being undertaken in high-risk environments in order to inform appropriate risk-management practices in their procurement and contracting activities.
Scope
This guidance document applies to procurement and contracting decisions being undertaken in high-risk environments. Indicators of a high-risk environment include:
- environments where bribery, fraud, corruption or other illegal activity are known to be relatively common
- procurements of high value (greater than $20 million) or with complex goods and services where the potential range of suppliers are businesses with:
- immature business structures and/or operations
- limited public profile
- limited experience delivering goods or services to which the procurement/contract applies and/or untested performance history in the sector
- a past history of illegal or unethical behaviour
- procurements that include foreign involvement (such as companies, subcontractors, personnel or resources held offshore) and that may also involve:
- differences in the business and legal cultures between Australia and other nations
- complications arising from the simultaneous application of multiple legal jurisdictions
- other issues, such as complications from multiple delivery entities/contractors (supply-chain complexity) and insider threat.
- Insiders are current and former employees or contractors who have legitimate or indirect access to an entity’s people, information, techniques, activities, technology, assets or facilities. Insiders may conduct activities that could harm an entity’s workplace, be detrimental to Australia's national security or undermine Australia's sovereignty and prosperity.
Request a copy of the full guidance
Procuring officials from Commonwealth entities may request a copy of the full guidance by contacting their internal Central Procurement Team or Procurement Agency Advice of the Department of Finance.
