Relevant policies for community services procurement

Government agencies must ensure these policy requirements are complied with when buying goods and services, including community services. 

There a number of key policies that you need to be aware of when undertaking a procurement process.  

Value for money

Government agencies must ensure that any procurement of goods and services achieves the best value for money outcome. 

This means that procurement activities must be aligned with Government policies, objectives and strategies, and actively support whole of government initiatives. 

At the individual purchase level, achieving value for money means considering cost and non-cost factors, where relevant, and making a value judgement about the best outcome. The value for money test might vary in complexity depending on the nature of the purchase, ranging from a simple price assessment for low value highly commoditised goods (such as stationery) or services, through to a detailed assessment and comparison of cost and non-cost factors. 

Behaving ethically

As a government agency employee, you must apply the highest levels of ethical behaviour in all areas of your work. This is particularly important in procurement – you are spending public money, and this tends to be closely watched by the public.  

Ensuring probity and accountability in government purchasing is a key policy objective. Probity in procurement involves more than just avoiding corrupt and dishonest conduct. It means ethical behaviour that upholds public values and ensures impartiality, accountability and transparency. 

Transparent and accountable behaviour in procurement give suppliers the confidence to participate in the government marketplace, and an ethical culture minimises the cost of managing risks and improves confidence in public administration. 

Probity is everyone’s responsibility and can be promoted by adopting processes, practices and behaviours that support public sector values and interests. 

In addition to SSC policies, probity and accountability obligations for government agencies and public sector employees are imposed through: 

• Western Australian Public Sector Code of Ethics; 
• Public Sector Management Act 1994; and 
• Financial Management Act 2006. 

Applying open and effective competition provides suppliers with fair and equitable access to government supply opportunities while maintaining the transparency and integrity of government procurement. 

Procurement planning and contract management

Procurement planning and sound procurement practices lead to consistently better value for money; higher quality project and service delivery; and reduced risks to the agency.   

Procurement planning involves: 

• consulting key stakeholders to define requirements; 
• analysing how the market works; 
• assessing risks; and  
• ultimately determining the best procurement strategy to meet the agency's business needs. 

You should keep appropriate records of the decision making process leading up to service agreement award. 

You can read more about policy requirements for Procurement Planning, Evaluation Reports and Contract Management at the State Supply Commission policies page.  

Record management

You should keep any relevant documentation and information on the purchase for audit purposes. The documents should be stored in a secure and confidential manner during the procurement process. Make sure you are storing documents according to your agency’s record management plan. 

Finance has developed a Declaration of Confidentiality and Interest form that you can find at Community services templates and guides. You can complete, sign and file the form at any time during the procurement process, and re-affirm as needed if circumstances change.  

Government agencies must comply with several pieces of legislation relating to record management practices, including the Financial Management Act 2006, Freedom of Information Act 1992 and the State Records Act 2000.

The Policy was updated in 2018, in order to encourage the planning, purchase and delivery of sustainable community services in Western Australia. 

The Delivering Community Services in Partnership Policy (2018) (the Policy) will facilitate this by:  

• breaking down the barriers between government agencies and the community services sector by promoting productive relationships based on partnership principles and behaviours;  
• providing direction in the approach to community services procurement. This includes the requirement for sound planning, genuine stakeholder engagement, co-design and relationship-based service agreement management;  
• promoting flexibility, innovation and community responsiveness to better meet community, cultural and individual needs;  
• clarifying when a targeted approach to procuring Community Services is appropriate and when an open tender is more appropriate;  
• streamlining procurement processes, reducing ‘red tape’, complexities and inconsistencies, and standardising terminology to clarify the dialogue between all parties; and  
• ensuring that government agencies contract with the community services sector in a way that supports sustainable and effective service delivery and recognises the importance of ongoing organisational viability.  

The Policy states that service agreements should be structured with five-year initial terms (exclusive of extension options) so they encourage continuity, efficiency and sustainable service delivery. 

You can view the Policy at Delivering Community Services in Partnership Policy  

​The policy challenges both the public and community services sectors to redefine the way they plan, design and deliver community services. The Department of Finance, Funding and Contracting Services has developed a Planning in Partnership Guide to support this approach to procurement. The guide provides direction and assistance to plan, prepare and implement co-design and stakeholder engagement when planning to procure community services. 

There is no single ‘right’ way to effectively do co-design, however, a number of key elements encourage successful engagement and collaboration with stakeholders. Considering and applying these elements will lead to more robust co-design processes, better service design and greater benefits for the community. 

Put simply, co-design means to collaboratively design services with stakeholders such as service users, community services organisations including service providers, and government agencies, using a structured approach. Co-design allows for stakeholders to have meaningful and significant influence over the community services being planned; more so than less collaborative stakeholder engagement activities.  

For further information on co-design, see the Planning in Partnership Guide on the Community services procurement resources page.