The Australian Government Information Management Office Archive

Doing Business Online with Government

Appendix 1 - Commonwealth procurement policy - how agencies buy

The policy framework for Commonwealth Government procurement

The policy framework for Commonwealth Government procurement consists of legislation, regulations, guidelines and instructions. The foundation is provided by the Financial Management and Accountability Act 1997 (FMA Act) and related regulations which lay specific responsibilities on officials responsible for procurement of goods and services for Commonwealth agencies.

The Commonwealth Procurement Guidelines are issued by the Minister for Finance and Administration under subregulation 7(1) of the FMA Act. They apply to the procurement of all property and services, and by outlining the fundamental policies and principles that underpin procurement, they articulate the expectations that exist on officials, or agents conducting procurement on behalf of the Commonwealth, in the design, conduct and management of all aspects of Government procurement.

Chief Executives are accountable for their agency's procurement performance under the FMA Act, and authorised to issue Chief Executive's Instructions (CEIs), which may include directions to officials involved in procuring goods and services.

Value for money is the core principle governing Commonwealth procurement. This core principle is underpinned by four supporting principles:

• Efficiency and Effectiveness
• Accountability and Transparency
• Ethics
• Industry Development.

Officials approving expenditure proposals must satisfy themselves that the proposed expenditure will make efficient, effective and ethical use of public money. More information about the policy framework for Commonwealth Government procurement is available at http://www.finance.gov.au/ctc/index.html.

Supply of IT goods and services

The Endorsed Supplier Arrangement (ESA) provides pre-qualification for businesses in the Information Technology, Major Office Machines, Commercial Office Furniture and Auctioneering industries to sell to the Commonwealth Government. It is mandatory for agencies subject to the FMA Act to use the ESA when purchasing information technology and major office machines.

The ESA is supported by an Internet-based Application and Search system. Businesses apply online and once endorsed can update their supplier information, as required. Government buyers can use the Search system to find information on suppliers, their outlet/dealer networks and the products and services they offer. More information is available at www.esa.finance.gov.au/.

Purchasing Advisory and Complaints Service (PACS)

The Purchasing Advisory and Complaints Service answers inquiries about Commonwealth purchasing policy and practice and helps to resolve concerns about Commonwealth purchasing processes. PACS is provided by the Department of Finance and Administration, and can be contacted by phone on 1800 650 531 or by email at pacs@finance.gov.au. More information about the service is available at http://www.finance.gov.au/ctc/pacs/purchasing%5Fadvisory%5Fand%5Fcompla.html.