What is planning for procurement-related policies?
Procurement-related policies apply to all purchases in addition to procurement rules.
Achieving outcomes under procurement-related policies can be done in different ways.
Planning for procurement-related policies ensures that outcomes and objectives included under procurement-related policies are considered early in the planning process.
How to plan for procurement-related policies
Step 1: Determine if procurement-related policies apply
Procurement-related policies may include:
- Aboriginal procurement
- Fair Jobs Code
- Local Jobs First – local content
- Local Jobs First - Major Projects Skills Guarantee – applies to construction works only
- Social Procurement Framework, including Building Equality Policy
Other procurement-related policies may apply.
Procurement-related policies may apply to:
- all purchases
- specific categories
- purchases above certain values
- purchases as part of a major project
Read the procurement-related policies to determine if they apply. More than one policy may apply.
Step 2: Consider how the procurement-related policies will apply
Consider how the procurement-related outcomes will apply.
Procurement related policies may apply by:
- directly engaging target suppliers
- requiring that target suppliers be included in the supply chain
- requiring that the supplier do things, such as train cadets
Sustainable outcomes may apply under procurement-related policies. They can apply by:
- describing requirements in specification or contract, such as minimise greenhouse gas emissions
- requiring the supplier to do things, such as use material made from recycled content
Example, a refugee support business provides catering. It can be directly engaged to provide catering for a meeting.
Example, a disability enterprise runs a plant nursery. It can supply plants for a road project as a supplier within the supply chain.
Example, when building a school, the specification may require playground seats to be made from recycled plastic.
Step 3: Look at how the need may impact the way procurement-related policies work
Consider how the scope and size of the need may impact the way procurement-related policies can work.
Achieving social outcomes may need target suppliers to be:
- directly engaged
- included in the supply chain
Achieving sustainable outcomes may need to be set out in the:
- specification
- contract
Example, a small supplier in a regional area can supply goods within its region, but is not able to supply goods across the state. A single tender at the state level excludes this supplier. By dividing the need into regions, that small supplier can compete in its region.
Example, an Aboriginal business may be able to supply a small procurement, but may not have the capacity to supply a large volume.
Example, climate change resilience may need the building to achieve a 5 star energy saving rating.
Step 4: Aboriginal procurement target
Agencies must reach target levels of procurement with Aboriginal firms.
Liaise with Agency procurement team to see if this target applies to the purchase.
Step 5: Determine estimated value of purchase
Determine the estimated value of the purchase.
Step 6: Determine how to apply the procurement-related policy
Review the results from these tasks.
Determine how to apply the procurement-related policy in the purchase.
Step 7: Record in procurement plan documents
Record in the draft procurement plan:
- the procurement-related policies that apply
- which procurement-related outcomes will be followed
- how the outcomes under procurement-related policies will be achieved
For more information see, Prepare a procurement plan.
Consider:
Manage conflicts of interest
Manage probity – consider issues raised at Probity issues by stage and task.
Conflicts of interest can arise during this task. Identify, declare and manage these.
Address Agency rules
Consult Agency procurement team for advice on meeting:
- procurement rules and policies
- Agency specific rules and policies
Follow Agency specific rules on when to seek an approval and who can give the approval.
Follow Agency specific rules for recording decisions and storing records.
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