Relevant policies when buying goods and services

Assessing value for money

The value for money test may vary depending on the purchase. This can range from a simple price assessment for low value frequently purchased goods or services, through to a detailed assessment and comparison of cost and non-cost factors. 

Probity is every employee’s responsibility and can be promoted through the processes, practices and behaviours that support public sector values and interests. It is more than avoiding corrupt and dishonest conduct. It also means upholding public values, impartiality, accountability and transparency whilst also giving suppliers the confidence to participate in the government marketplace.

Confidentiality of Interest

Finance has developed a Declaration of Confidentiality and Interest form (available at Goods and services templates) that agencies can use to support compliance with probity. It can be completed, signed and put on file at any time during the procurement process, and be re-affirmed if there is a change in circumstances.

Awarding contracts

Agencies need to keep records of the decision making process leading up to the award of a contract. The decision should be recorded in an evaluation report for all written quotes and public tenders. It is important to store documentation and information in a secure and confidential manner for audit purposes. Agencies must comply with record management practices legislation, including the Financial Management Act (2006), Freedom of Information Act (1992) and the State Records Act (2000).  

Probity and accountability obligations for public authorities and public sector employees are enforced through:

• Western Australian Public Sector Code of Ethics
• Public Sector Management Act (1994)
• Financial Management Act (2006) 

Procurement planning and sound procurement practices lead to better value for money, higher quality project and service delivery and reduced risks to the agency.  It also involves consulting key stakeholders to define requirements, analysing how the supply market works, assessing risks and ultimately defining the best procurement strategy to meet the agency's business needs.

Managing contracts

Contract management is an integral part of the procurement cycle so it’s vital that contract managers have a good knowledge of the operation and performance of their contracts to boost outcomes. To ensure this, contract managers should be engaged early in the planning process so that they can contribute their expertise during the development of the contract and build familiarity with the contract requirements. Contract management plans (available at Goods and services templates) for medium to high risk contracts help contract managers with transition management, performance monitoring and makes sure both parties fulfil their commercial and contractual commitments.

Under the APP your agency is required to award a percentage of your contracts over $50,000 to Aboriginal businesses and not for profit organisations. The targets also apply to Government Trading Enterprises.

The 2018-2019 target was 1% of government contracts, which increased to two percent in in 2019-2020 and will increase again to 3 per cent In 2020-2021. 

There are inclusions and exclusions for the types of contracts that are relevant, please refer to the APP Guide. 

The Government’s Western Australian Industry Participation Strategy and Buy Local Policy encourage agencies to increase the opportunities for local businesses to win government contracts. This also ensures that where purchases are being sought for delivery or use within a specific regional town or region, local businesses have an opportunity to participate. Opportunities for local suppliers to have access to the government marketplace should be given special consideration, particularly outside the Perth region where they can offer value for money.

Speak to your agency’s procurement team or look on your agency’s intranet to find out if this is the case. An agency contract will often have buying rules you must follow.

Is there a Common Use Arrangement (CUA) or Group Buying Arrangement (GBA) I need to buy from?

A CUA is a whole-of-Government standing offer arrangement that is mandatory in the Perth region. Regional Buying Arrangements (RBAs) cover regional purchasing and only applies to a particular region as identified in the relevant Buyers’ Guide.

The benefit of buying from CUAs is that they:

• save you time and effort when purchasing items you commonly need
• help you to achieve a value for money outcome 
• make it easier for you to comply with SSC policies and insurance requirements
• allow you to focus on your agency's core business objectives

Always quote the CUA number and identify yourself as a government buyer so the supplier gives you CUA prices. A list of all current CUAs is available from Contracts WA including the contact details of each contract manager who can assist you on a particular CUA. 

Australia participates in the:

• Australia–United States Free Trade Agreement (AUSFTA) 
• Australia-Chile Free Trade Agreement (ACI-FTA) 
• Korea-Australia Free Trade Agreement (KAFTA) 
• Japan-Australia Economic Partnership Agreement (JAEPA) 
• Singapore-Australia Free Trade Agreement (SAFTA)

Agencies must manage ‘covered procurements’ in accordance with the FTAs. A covered procurement is a procurement of products and/or services (not involving construction services) where the total contract value is estimated to equal or exceed the amount advised by the SSC. For products and /or services, the value is A$680,000 (total contract price including the value of any options and GST). 

Western Australia is also a party to the Australia and New Zealand Government Procurement Agreement. The ANZGPA provides the opportunity for Australian and New Zealand suppliers to compete on an equal and transparent basis for government contracts in the Commonwealth, States, Territories and New Zealand. The ANZGPA ensures the absence of practices that discriminate against Australian and New Zealand suppliers.

Read the Free Trade Agreement Guidelines to find out more about what you need to do to ensure your procurement complies with the FTAs.