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Procurement Practice Guide Introduction

The Procurement Practice Guide provides an effective ‘how to’ framework for public sector contracting for products and/or services.  Understanding and adhering to these guidelines will help you achieve efficient purchasing outcomes for government.

Purchasing processes should be cost effective for both public authorities and suppliers. A well-planned purchasing process will ensure that policies are followed, pitfalls are avoided and a successful outcome is achieved.  It is important to be aware of responsibilities and to plan the entire purchase process before starting.  Errors, uncertainty and unrealistic timelines can undermine market confidence, discredit a purchasing process and devalue the outcome of the procurement. 

These guidelines cover the primary issues relating to government purchasing.   Further advice and assistance is available to public authorities from the State Supply Commission (SSC) and the Department of Treasury and Finance (DTF), if circumstances arise that are not addressed in this Guide. 

Application of the Guide

This Guide and the SSC policies reflect the principles and arrangements fundamental to efficient and effective purchasing and contracting.

For consistency the term ‘public authority’ has been used throughout. However, this Guide is provided for general use across the public sector and applies to all methods of procurement, including e-commerce methods.

In undertaking any procurement activity, public authorities, and any private sector organisations purchasing on their behalf, must understand and comply with the policy requirements outlined in the SSC policies.

In the event of any inconsistency between this Guide and the supply policies, compliance with the policies takes precedence. All supply policies can be viewed at the SSC’s website at www.ssc.wa.gov.au.

Public Authorities’ Delegations for Purchasing

The SSC delegates its purchasing and contracting authority to public authorities under the jurisdiction of the State Supply Commission Act 1991 (the Act).

For most public authorities, their delegation to purchase provided under the SSC Act requires them to involve the Department of Treasury and Finance (DTF) for purchases over $20,000. As a result of the Procurement Reform program, the Department of Treasury and Finance established teams of procurement professionals based in the key public authorities.

As a result, public authorities under the jurisdiction of the Act were issued with an unlimited partial exemption with a special condition of the DTF signing-off for all purchases over $20,000.  Public authorities should use this framework to conduct their day-to-day purchasing.  The DTF procurement team works with the public authorities to facilitate the desired outcomes for strategic purchases, using a best practice framework.

There are four public authorities that can procure products and/or services to any value without either involvement by the DTF or the State Tenders Review Committee.  However, they must comply with SSC and government procurement policies.  These agencies are:

  • Public Transport Authority;
  • Fire and Emergency Services Authority;
  • Main Roads Western Australia; and
  • Insurance Commission of Western Australia.

The DTF has been issued with a delegation that allows it to develop and manage whole of government Common Use Arrangements (CUAs) and to purchase products and/or services on behalf of public authorities. For more information please refer to the Appendix - Common Use Arrangements.

Structure of the Guide

The first part of the guide has been structured in line with the financial thresholds set out in the State Supply Commission’s Open & Effective Competition Policy. Even though all procurement has some common elements, the best practice requirements for each purchase will vary depending on the size and complexity of each purchase. 

Specific procedures cover the procurement processes for:

  • Direct Purchasing for purchases up to $5,000;
  • Verbal Quotations for purchases between $5,001 and $20,000;
  • Written Quotations for purchases between $20,001 and $150,000; and
  • Open Tender for purchases $150,000 and above.

Although the generic steps making up the procurement process have been presented in this guide, it should be acknowledged that each procurement requirement may have differences or specialised needs. Recognition of such differences will result in public authorities adapting and applying the process in a manner that will best achieve their individual requirements.

Appendices

The appendices are arranged in separate topics and provide more detailed information relating to particular elements of the procurement process.  These appendices are:

  1. Appendix - Standard Documents and Templates;
  2. Appendix - Procurement Plans;
  3. Appendix - Risk Assessment and Management;
  4. Appendix - Evaluation Panels;
  5. Appendix - Contract Management;
  6. Appendix - Common Use Arrangements;
  7. Appendix - Purchasing Cards;
  8. Appendix - Buy Local / AUSFTA;
  9. Appendix - Agency Specific Panel Contracts;
  10. Appendix - Probity and Accountability;
  11. Appendix - Sustainability;
  12. Appendix - Disposals;
  13. Appendix – Exemptions; and
  14. Appendix - Glossary Of Terms.