Government agencies should work towards collaboratively defining and articulating community and service level outcomes. Before you commence any procurement process, you will need to define the community need as well as a budget for the procurement.
You then need to seek any relevant internal approvals – each agency will have different requirements. Once you have all the approvals you need, you can start to prepare a business case for the procurement, which must consider the risks associated with the procurement.
What is the community need?
Show moreProgram logic
Program logic is a simplified theory of change tool – it is a visual statement of how a service will solve an identified problem. The visual statement should reference what activities will bring about the change, and what results you expect to see for the community.
There is no single accepted way to develop a program logic model, but it should ideally be developed in the program planning stage. You can start by mapping either from the vision/end goal, or from the condition/problem. Finance offers further guidance about program logic in the Planning and Designing Community Services training session, and in the Outcomes-based Program Logic template and guide available at Community services templates and guides.
Needs analysis
Needs analysis is the process of collecting and analysing data about needs and social drivers, and involves researching the nature and mix of possible service response strategies.
Access relevant data on the needs and social drivers for the applicable service within the community, as well as the nature and mix of possible service response strategies. Engage with stakeholders during the needs analysis, but ensure that you have ‘done your homework’ by gathering and analysing information.
Review any previous procurement processes and existing service agreements, including those from other Government agencies, for similar services to identify any potential problems and solutions. There may have been issues in the past with the scope or cost of the purchase, or with service delivery. Engage with existing service providers and analyse service agreement reviews to assist in building this knowledge.
Properly engaging in this process, and engaging with stakeholders will lead to a better quality definition of needs and ultimately a service agreement which adequately meets the community need.
Stakeholder engagement
Stakeholder engagement is a key aspect of the DCSP Policy and community services procurement.
What is my budget?
Show moreIt is important to ensure that the Accountable Authority is aware of the estimated cost and that there is an approved budget that will cover the required service cost for the life of the service agreement, before proceeding with the procurement.
Determining your budget upfront is important as it will dictate the journey which you need to follow in your procurement.
Getting approvals and agency specific requirements
Show moreAll approvals, including the budget for the life of the service agreement, need to be confirmed before commencing a procurement process.
Approvals required could include:
- Ministerial authorisations
- Confirmation by the government agency’s Chief Financial Officer that funds are available
- Business Case
- Compliance with agency-related instructions and financial and procurement delegation matrices
A signed memorandum or email by the government agency’s Accountable Authority, for example, an Executive Director or Director General, may also be sufficient in certain instances. You should also check your agency’s governance procedures.
When commencing a procurement process, you also need to be aware of the difference between your agency’s financial delegation and procurement delegation matrices. A procurement delegation matrix includes officers who can act on behalf of the agency for procurement processes up to a pre-determined value. A financial delegation matrix is different - it outlines officers who are responsible for spending your agency’s funds. The values in financial and procurement delegations often differ, so be aware of the appropriate officer who has the authority to commence and approve procurement processes within your agency.
For larger procurements, you should also consider providing potential service providers with advance notice of the upcoming procurement using a Registration of Interest or an Early Tender Advice using Tenders WA.
Developing the business case
Show moreThe complexity of a Business Case will vary depending on the size and risk of the procurement process. In many cases an email, quote form, or brief one or two page overview will be sufficient; however a formal Business Case should be prepared for any procurement processes that are likely to be high-risk, high-value or complex. The Business Case is part of the internal budget approval process, defines the scope of the purchase, and ensures that the procurement option selected will meet the agency’s requirements.
The Business Case also provides justification for undertaking a particular project. It could include evidence from evaluating the benefits, costs and risks of alternative options, and presents the rationale for the preferred solution. The purpose of a business case is to obtain management commitment and approval for the investment or funding.
When developing the Business Case, complete the following steps:
- identify the community need and purpose of the procurement process
- identify and appraise options
- establish whether the budget is likely to meet the community need
- develop a program or project brief
- develop the procurement strategy and process to ensure a viable outcome (service agreement) can be achieved.
The Business Case should cover the following headings:
- Scope: What the Community Service need and outcome is, how it was identified and reason this need or demand is not met by existing services. .
- Market Research: Appraise procurement options and research the community services sector and stakeholders.
- Develop Procurement Options: State whether you will follow a two-stage process, Request or Preferred Service Provider route. Take into account sustainability considerations, financial considerations, impact statement and the form of contract available.
- Preferred Procurement Option: Describe the proposed procurement framework and process, the service agreement period, how pricing will be structured, how cost will be determined and where the budget will come from.
- Risks: List category of risk, develop risk management strategies, risk rating and overall risk rating.
- Recommendations: Finally, list the recommended option.
Government agencies are expected to engage with the community services sector in a way that is consistent with the partnership principles and behaviours in the DCSP Policy. Doing so will help deliver services that focus on the needs of citizens in our community that most need support.
The Community Services Business Case template is available at Community services templates and guides.
What are the risks?
Show moreAccording to Treasurer’s Instruction 825 (Financial Management Act 2006) “In complying with the Treasurer's Instructions, managers need to focus on material risks at all levels of the Public Authority and take necessary action to manage those risks. Risk Management is an integral part of day-to-day operations and is an important element of effective internal control.”
Government agencies should be aware of RiskCover notification requirements, which are set out in Clause 8 of the RiskCover Fund Guidelines. If you need further information, you should contact your RiskCover client service manager.
The Community Services Risk Workbook template is available at community services templates and guides.