From 1 January 2016, Finance has mandated that non-corporate
Commonwealth entities must use the Commonwealth Contracting Suite
(CCS) when purchasing goods or services valued at less than
$200,000 (GST inclusive) unless one of the specified exemptions
The policy, contained in the Resource Management Guide
No.420: Mandatory use of the Commonwealth Contracting Suite for
procurement under $200,000, is designed to support the
Government's deregulation agenda by requiring the use of the
CCS, streamlining and simplifying procurements.
There are two exceptions to the requirement to use the CCS:
circumstances where the CCS must not be used, and
circumstances where it is optional to use the CCS.
Circumstances where the CCS must not be used
Non-corporate Commonwealth entities must not use the CCS
the arrangement is not a procurement
a bespoke contract is required to manage specific risks
(following a risk assessment)
using a mandated whole of government arrangement or standing
offer arrangement prescribing a different contract
it is an ICT procurement where SourceIT and SourceIT Plus
contract templates are being used
where no contract is required, or
both procurement and delivery occur outside Australia.
Circumstances where the CCS is optional
It is optional for non-corporate Commonwealth entities to use
the CCS when:
procuring construction services
procuring specialist military goods or services or specialist
the procurement uses paragraph 2.6 of the Commonwealth
Procurement Rules. That is, applying measures determined to be
necessary for the maintenance or restoration of international peace
and security, to protect human health, for the protection of
essential security interests, or to protect national treasures of
artistic, historic or archaeological value
the procurement is significantly impacted by terms, conditions,
guarantees and warranties implied by law into contracts that cannot
be excluded, restricted or modified by agreement (e.g. lease
the procurement is valued at or above $200,000 (including GST),
it is industry practice to use the supplier's terms and
What this means for agencies
We recommend that agencies review their standard procurement
contract suites and practices to determine how to include this
requirement in their overall procurement framework in the most
efficient manner. For example, it may be worthwhile reviewing and,
if appropriate, amending internal policies around requiring
specific procurement templates to be used so that they align with
this policy without unnecessary duplication.
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.
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