The State Procurement Policy was recently revised by the Department of Housing and Public Works, with the revised policy effective from 1 July 2013. This update summarises what's new, what remains unchanged and the effect of the new look policy on Government Owned Corporations, agencies and suppliers.

The effect of the Government's rewrite is that the Queensland Procurement Policy (QPP) is a simplified, clarified and focused policy.

The QPP replaces the State Procurement Policy (SPP) which was issued in September 2010 and last updated in June 2012.

This new policy was approved by Cabinet on 17 June 2013 and was operational from 1 July 2013. However given the extent of the amendments, a transitional period is currently in place, but entities to which the policy applies must fully comply by 31 August 2013.

What's new?

  • Policy name change – now the QPP, formerly the SPP;
  • Reduced number of policy objectives – from 3 to 1;
  • Reduced number of government procurement principles – from 13 to 6;
  • Government Owned Corporations (GOCs) are no longer bound to comply with the QPP. As such, GOCs are no longer defined as an 'agency' or an 'affected agency' under the QPP;
  • Holistic 'one-government' approach as opposed to 'individual agency' based approach;
  • The Director-General Council has replaced the Procurement Board of Management;
  • The procurement method used for contracts with a value of $500,000 or less is not required to be disclosed;
  • Administrative requirements to prepare and provide a copy of the draft and approved Corporate Procurement Plan have been removed;
  • Requirement for broad organisational risk management exists by removing the express requirement that probity auditors and advisors be only engaged for particular contracts of a certain value and level of risk;
  • The mandatory use of government terms and conditions to procure goods and services has been removed. However, mandatory use of standard terms and conditions still applies for the procurement of ICT (Information Standard IS13) and construction (Capital Works Management Framework);
  • Requirement of agencies and special purpose vehicles to use Government Information Technology Contract (GITC) has been removed; and
  • Numerous fact sheets and other guidance have been published by the Department on the meaning of each of the procurement principles (among other things).

What remains unchanged?

  • The QPP applies to budget sector agencies, large statutory bodies, special purpose vehicles and a department or a statutory body as defined under the Financial Accountability Act 2009 (Qld);
  • All stages of the procurement decision making process must be defensible and documented;
  • All open invitations to offer are still required to be published and maintained on the e-tender website; and
  • A procurement complaints management system must still be developed and maintained.

Effect of the QPP on GOCs, agencies and suppliers

  • Government terms and conditions are no longer expressly required for the procurement of goods and services. This affords greater contractual autonomy to both customers and contractors;
  • Agencies will still be required to use 'whole-of-government' terms and conditions and related government policies that require the use of standard government terms and conditions for ICT and construction procurement;
  • The government has stated it will work with GOCs to 'identify opportunities to collaborate in the delivery of better outcomes', as GOCs are not bound by the new policy; and
  • Greater scope for managing risk as probity auditors or advisors may now be engaged for any procurement, regardless of contract value or level of risk.

What do you need to do?

GOCs

  • Identify SPP contractual obligations in your existing contracts that are no longer mandated apply;
  • Consider whether you need to draft new contractual provisions for future contracts with suppliers;
  • Review and amend your existing procurement policies; and
  • Provide training to your staff on new and preferred positions to be negotiated in future contracts with suppliers.

Agencies

  • Review and consider whether your existing procurement policies and internal strategies comply with the QPP;
  • Consider whether you need to draft amendments to your existing procurement policies and develop new strategies to comply with the QPP; and
  • Provide training to your staff on the QPP.

Suppliers

  • Identify SPP contractual obligations in your existing standard-form contracts with GOCs that no longer apply and amendments to these contracts for future engagements;
  • Review your existing contracts with agencies and identify SPP obligations and amendments required to conform to the QPP;
  • Provide training to your staff on the QPP; and
  • Provide training to your staff on new and preferred positions to be negotiated in future contracts with GOCs and agencies.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.