Upload
monet
View
27
Download
0
Embed Size (px)
DESCRIPTION
Agency B Procurement Process Business Process Map. Agency B Proposed Procurement Process About this document. - PowerPoint PPT Presentation
Citation preview
LEVEL 1 UNIT 3 GREEN SQUARE KINGSTON 2604 P +61 6282 8852 F +61 2 6282 8832 WWW.THINKPLACE.COM.AU
AUSTRALIA NEW ZEALAND
Agency B Procurement ProcessBusiness Process Map
Event Analysis and Review of Commonwealth Procurement Processes for procurements under $80,000
Client Department of Finance and Deregulation
DateVersion
30 May 2011FINAL 1.0
ThinkPlace Team Raffaella RecuperoMark Thompson
PAGE 2ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT PROCESSES UNDER $80,000 – AGENCY B PROCUREMENT V1.0
This document contains a business process map for procurements under $80,000, which specifies the requirements set out in Agency B’s Chief Executive Instructions (CEIs), operational guidelines and other internal guidance, as well as the overarching requirements of the Commonwealth Procurement Framework.
ThinkPlace has worked with a small group of people in Agency B to develop this document.
ContentsIntent Statement 3Agency B CEI snapshot – current state 4
Business process maps 5Role statements 6Map Levelling 9Level 0 map 10Level 1 map 11
Process analysis 16Process issues, pressure points and suggestions for improvement 17
Agency B Proposed Procurement Process
About this document
PAGE 3ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT PROCESSES UNDER $80,000 – AGENCY B PROCUREMENT V1.0
Agency B Proposed Procurement Process
Out of scope The project will not to assess how well agencies implement
the CPGs and relevant FMA legislation when undertaking procurements
The project will not redesign policy
Where are we now?Analysis of ‘2008-09 AUSTENDER statistics indicate 85,000 contracts (over $10,000) were awarded. The total value of these contracts approx. $35bn.Of those contracts, about 65,000 contracts falling under the $80,000 threshold were awarded. The total value of these contracts was about $12.6bn.Over 80% of the total number of contracts correspond to about 4% total value. An APS 5/6 can spend up to 80% their time on low value contractsLow value contracts translate to a high administrative burden Agencies have tailored procurement approaches reflect organisational structure, authority and delegations, approval processes, risk appetite, level of IT maturity, and resourcing, reporting processes and systemsProcurement functions differ in agencies – some functions are centralised, some are decentralisedParticipating agencyes have undertaken work to review CEIs, processes and protocolsWhole of Government CEIs are under developmentWork has also been undertaken to simplify the standard short form contract, reducing the number of pages from 80 to 6
Intent
How do we get there?
Analyse and review Commonwealth procurement practices currently employed by selected agencies when conducting procurements under $80,000, identifying issues, pressure points and opportunities for improvement, and on that basis making recommendations for simplifying and streamlining processes.
What do we need to do?
What would success look like?A better practice model for procurements under the threshold that:
− Standardises the process across FMA agencies− Makes it easier for staff to know what to do and how
to conduct procurements − Reduces administrative burden
Finance will be able to use the project findings and recommendations as a basis for presenting a better practice model to FMA agencies, where appropriate. The project will influence agency CEIs and processes
Focussing question
How can we standardise and streamline the process for procurements under the $80,000 threshold, making it less onerous FMA agencies, while also maintaining the integrity of the FMA Act?
A standardised, simple and safe process for all FMA agencies conducting procurements that fall under the $80,000 threshold
What is the problem/ opportunity?Agency procurement processes are complex, confusing, and onerous for staffRequirements vary from agency to agency – processes are not standardised across governmentSuppliers are frustrated
APPROACH FOR BRIDGING THE GAP
April
• Intent, planning and agency engagement
• CPG process modelling
May
• Agency CEI process mapping
• Case study development by agencies
• Case study analysis
June
• Synthesis • Design ‘better
practice model’
Timing
What do we need to consider?Avoid over-engineering or over prescribingAim to set a benchmarkImpact on behavioural change
Who do we need to involve?Finance’s Procurement Policy BranchProcurement Policy Areas and representatives from line areas
Under the FMA Act, 104 FMA agency CEOs have devolved authority to manage public money within their agency.
The FMA Act and Regulations set the framework for the proper management of public money and public property in the custody and control of the Commonwealth.
The Commonwealth Procurement Guidelines (CPGs) articulate the Government’s expectations for all department and agencies conducting procurement.
Agencies have evolved their procurement policies and practices within the context of the agency’s organisational structure, delegations, approval processes etc.
Agency specific policies and procedures are contained with large and complex volumes of CEIs, departmental policy documents and protocols.
SYSTEM IN FOCUS
PAGE 4ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT PROCESSES UNDER $80,000 – AGENCY B PROCUREMENT V1.0
TOOLS •Checklists•Procurement Protocols•E-procurement system •Contracts register •Purchase orders
PRINCIPLES/ OUTCOMES•All procurement must represent value for money and the efficient, effective and ethical use of Commonwealth resources •All purchases must be made in accordance with the CPGs and the department’s Procurement Guidelines (including checklists) •All potential suppliers must be treated equitably •Offers of gifts or hospitality in connection with, or in close proximity to, any procurement activity must not be accepted (transparency)•Procurement processes must be accountable, transparent and able to withstand scrutiny
PROCESS CONDITIONS/ STANDARDS•All members of tender evaluation panels must have received procurement training•Procurement arrangements should not contain contingent liabilities unless they are considered remote and immaterial. •Legal and probity advice must be obtained for material contracts in accordance with the department’s Procurement Protocols •Declare and manage any actual or perceived conflicts of interest. For actual conflicts of interest this may involve removing oneself from the process •Maintain complete and accurate records of procurement activities on file. Sufficient documentation must be kept on file to provide an understanding of the reasons for the procurement, the process that was followed and all relevant decisions, including approvals and authorisations and the basis of these decisions •Mandatory procurement reporting requirements apply to the department and are outlined in the department’s Procurement Guidelines.
ROLES & RESPONSIBLITIESResponsibilities are specified for the following roles
OfficialsA person who is in or forms a part of this agency. The term is also extended to mean employees, contractors, consultants or other Commonwealth or state or territory government officials who are performing tasks or procedures for or on behalf of Agency B•obtain approval from an FMA regulation 9 delegate provided in writing for medium and major purchases but can be provided verbally for minor purchases (but the approval should be written down as soon as possible after the it was given) •obtain written approval from an FMA regulation 10 delegate (for insufficient existing administered appropriation)•Maintain records•Register all procurements and consultancies contracts valued at $10 000 or more (GST inclusive) on the department’s contracts register and raise a purchase order Delegates•ensure that the requirements of FMA regulation 8 have been met before they enter any procurement arrangement •not act as delegate for procurement activities which they have managed and conducted themselves •declare any actual or perceived conflicts of interest •only approve the purchase of goods and/or services of a nature and value consistent with their delegation •ensure all procurements and consultancy contracts valued at $10 000 or more (GST inclusive) are accurately registered on the department’s contracts register and that a purchase order has been raised.
PROCESS RULES – workflow •Tender documentation must be approved by the delegate before the request for tender is released to the market •All purchases must be approved prior to the purchase by an appropriate FMA regulation 9 delegate and, if required, an appropriate FMA regulation 10 delegate •Reg 8 requirements met before contract•Procurement processes and decisions must be documented and records must be retained for 7 years after completion for standard contracts and 12 years after completion for tenant leases and deeds, such as deeds of standing offer •Register and ensure contract on contracts register
Minor purchases (under $20,000)•Existing arrangements (corporate contracts, panels and whole of government arrangements) must be used where appropriate •In the ACT the department’s E-procurement system must be used to purchase stationery, toner and copy paper •Where e-procurement and existing arrangements are not suitable, minor purchases are to be made using corporate credit cards wherever possible.
Medium purchases (from $20,000 to less than $80,000 including GST)•Existing arrangements (corporate contracts, panels and whole of government arrangements) must be used where appropriate •Where existing arrangements are not appropriate, medium purchases are to be made by obtaining and evaluating quotes from the market and selecting a preferred provider. A minimum of three quotes should be obtained wherever possible
Agency B Procurement Process
Snapshot of agency requirements specified by CEIs
LEVEL 1 UNIT 3 GREEN SQUARE KINGSTON 2604 P +61 6282 8852 F +61 2 6282 8832 WWW.THINKPLACE.COM.AU
AUSTRALIA NEW ZEALAND
Business process maps
PAGE 6ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT PROCESSES UNDER $80,000 – AGENCY B PROCUREMENT V1.0
Procurement OfficerWhat are my obligations under the Commonwealth Procurement Framework?Awareness and adherence to process in accordance with CPGs, FMA, and internal CEIs and guidance material
o Value for moneyo Economicalo Ethicalo Efficiento Accountableo Transparent
What is my role? What are my responsibilities? Provide advice regarding procurement and reporting Seek approvals I support and advice the End User I go to the PAU for advice and clarification
What are my concerns?Too much paperwork to read throughHaving PAU ringing and confirming my detailsConfusion regarding which tender processes I should use
o Open o Direct o Select
Alignment of procurement principles to business needsMeeting timeframes set by end userTranslating business need and requirementsBudget and resourcesLack of clarity of my role and responsibilitiesGuidance and advice isn’t always user friendlyThe need to provide an audit trail and documentation
DelegateWhat are my obligations under the Commonwealth Procurement Framework?FMA Reg 9 approval to spend money Understand budget and determine whether funds are available for procurementEnsure Reg 10 is confirmed if requiredDetermine whether procurement activities meet best value for moneyConfirm all business case and procurement process meets Agency B CEIs and Procurement Guidelines Ensure risk evaluation meets procurement typeProvide FMA 44 approval to enter into an arrangementEnsure suitable records and filing is completedProvide input into the Annual Procurement Plan
What is my role? What are my responsibilities?As above
What are my concerns?Have we completed the best value for money procurement method?Is the process defensible and accountable and will this be reported correctlyLack of training and understanding of my responsibilitiesHas due process been followed?I rely on the procurement officer to ensure process is defensibleLack of induction -
End User (Business Line)What are my obligations under the Commonwealth Procurement Framework?Awareness that Reg 9 and 10 have been adhered to
What is my role? What are my responsibilities? Ensure that operational requirements are metIdentifying procurement needRequesting procurement activityUsing the end result of the procurement
What are my concerns?That the end result meets my needs and works on an operational level
o Simple streamlined process that doesn’t cause a high administrative burden
o I want to know who to talk to is the result does not work – when and how will it be fixed?
o Can I change the result if it does not work?
I only want go through procurement process once, with minimal effort and resources consumed
Agency B Procurement Process
Role statements
PAGE 7ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT PROCESSES UNDER $80,000 – AGENCY B PROCUREMENT V1.0
Specialist (Legal)What are my obligations under the Commonwealth Procurement Framework?None specifically under the FMA (but need to adhere to Legal Services Directions and professional obligations)Compliance with legal services directionLegal signoff for contracts
What is my role? What are my responsibilities?To provide legal. Probity advice, as instructed, in accordance with the law, FMA, CPGs
What are my concerns?Officers do not follow adviceOfficers do not provide all details and therefore compromise adviceIf legal advice is not sought/ factored into the procurement process, there is a risk to the reputation of the organisation and possible legal action
Payment ProcessingWhat are my obligations under the Commonwealth Procurement Framework?Delegate review of FMA delegation
o 10% sample of payments under $500,000
Ensure purchase order referenced in claim for payment
o Links in with contract register (PIN allocation)
What is my role? What are my responsibilities? Payment of invoices including adherence and payment
to Small Business Circular Requirements Recording/ entering existing/ new supplier information Adherence to GST legislation Record/ audit trail
What are my concerns?Lack of detail on Claim for Payment (CFP) form to meet payment termsInvoices that do not meet GST requirementsHas appropriate delegate approval been granted (evidenced by delegate signature on CFP)?
Procurement Advisory Unit (PAU)What are my obligations under the Commonwealth Procurement Framework?Provide independent review for appealsEnsure contracts >= $10,000 entered into AusTenderEnsure data integrity regarding reporting obligations under CPGs (i.e. APP, Senate Order, Annual Reports)
What is my role? What are my responsibilities? To provide advice to line areas conducting
procurement so that they meet the obligations of the FMA/ CPGs while still meeting their business need
Meeting Departmental reporting requirements – Annual Plan, Senate Orders, annual Procurement Plans
Integrity of data in contracts register Rely on contracts register for reporting Provide and maintain procurement tools (e.g.
checklists, templates)
What are my concerns?Not given full information by Line Area which may lead to providing incorrect adviceWe do not have visibility/ oversight of what the Line Area are doing. Should PAU be a process checkpoint? Even if they do seek advice, do they follow it?Are delegates supportive of following the procurement process? Delegates can influence procurement officers/ end users
Agency B Procurement Process
Role statements
PAGE 8ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT PROCESSES UNDER $80,000 – AGENCY B PROCUREMENT V1.0
SupplierWhat are my obligations under the Commonwealth Procurement Framework?None specifically
What is my role? What are my responsibilities? Provide quotesProvide good(s)/ service(s), in line with contractual obligations, including ongoing contract managementIssue invoicesFollow up on outstanding payments if required
What are my concerns?Late paymentsTransparency of procurement processTime taken to complete procurement processDifferent procurement requirements between agenciesCompetitors having an unfair advantage
Agency B Procurement Process
Role statements
PAGE 9ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT PROCESSES UNDER $80,000 – AGENCY B PROCUREMENT V1.0
Level 0 – Process phases
This map provides an overview of the entire process end to end, including the process triggers, process phases, and main workflows.
Level 1 – Process activities
These maps drills down into each of the Level 0 process phases, detailing the activities that occur.
Level 2 – Procedural tasks, support products and systems
Level 2 is not generally documented as a map, but rather references guidelines, operational instructions, instruments and / or business systems such as databases. These things underpin the delivery of a process.
Symbols
ActivityActivity
DecisionDecision
Database/ Storage
Workflow
DocumentDocument Off page connector
Ongoing Activity
Ongoing Activity
Level 0Level 0
Level 1Level 1
Level 2Level 2
TriggerTrigger
Agency B Procurement Process
Map Levelling
EndEnd
PAGE 10ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT PROCESSES UNDER $80,000 – AGENCY B PROCUREMENT V1.0
End UserBusiness Line
Procurement Officer
Delegate
PAU
Payment Processing
Specialist
Supplier
Identify needIdentify need
Agency B Procurement ProcessLevel 0 – Process Phases
Plan procurement
Plan procurement
Approach market
Approach market
Assess submissions and negotiate contract
Assess submissions and negotiate contract
Receive good(s)/ service(s) and pay
Receive good(s)/ service(s) and pay
Respond to RFQRespond to RFQNegotiate and
enter into arrangement
Negotiate and enter into
arrangement
Provide good(s)/ service(s) and
receive payment
Provide good(s)/ service(s) and
receive payment
Provide in-principle approval
Provide in-principle approval
Provide approvalProvide approval
Plan procurement
Plan procurement
Raise purchase order and process
payment
Raise purchase order and process
payment
Provide advice and support (as req’d)
Provide advice and support (as req’d)
Provide approval (as req’d)
Provide approval (as req’d)
Provide input and management approval (as
req’d)
Provide input and management approval (as
req’d)
Provide advice and support (as req’d)
Provide advice and support (as req’d)
PAGE 11ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT PROCESSES UNDER $80,000 – AGENCY B PROCUREMENT V1.0
End UserBusiness Line
Procurement Officer
Delegate
PAU
Payment Processing
Specialist
Supplier
Check existing arrangements
Check existing arrangements
Agency B Procurement ProcessLevel 1 – Identify need
❷❷
Use existing arrangement
Use existing arrangement
Identify procurement
need
Identify procurement
need
ConsiderationsProcurement has been identified as the method
to obtain the good(s)/ service(s)
ConsiderationsProcurement has been identified as the method
to obtain the good(s)/ service(s)
Does a suitable
arrangement exist?
Yes
No
Requirement Use existing
arrangements if they are suitable
Requirement Use existing
arrangements if they are suitable
PAGE 12ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT PROCESSES UNDER $80,000 – AGENCY B PROCUREMENT V1.0
End UserBusiness Line
Procurement Officer
Delegate
PAU
Payment Processing
Specialist
Supplier
Understand procurement
need
Understand procurement
need
Agency B Procurement ProcessLevel 1 – Plan procurement
Value & type of proc’t?
< $19,999
Understand procurement
need
Understand procurement
need
NoteThe business case is scalable. For a simple
procurement it could be an email, for a more complex procurement it could be a
multipage document
NoteThe business case is scalable. For a simple
procurement it could be an email, for a more complex procurement it could be a
multipage document
Provide input into business case (as
req’d)
Provide input into business case (as
req’d)
Review business case and proposed procurement method
Review business case and proposed procurement method
Check that budget is available
Check that budget is available
Approve(in-principle)
?
❶❶
❸❸
Yes
No,Refine business
case; or End process
Provide advice and support (as req’d)
Provide advice and support (as req’d)
Develop business case
Develop business case
Business Case
proforma
Business Case
proformaChecklistsChecklists
CPG6.8 &
9
CPG6.8 &
9
Delegation database
Delegation database
Provide advice and support (as req’d)
Provide advice and support (as req’d)
$20,000 - $79,999
Stationary/ office supplies
Other
Reg 9 approval built-in
Use E-Procurement
process
Use E-Procurement
process
Use credit card process
Use credit card process
Seek approval to conduct
procurement
Seek approval to conduct
procurement
PAGE 13ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT PROCESSES UNDER $80,000 – AGENCY B PROCUREMENT V1.0
End UserBusiness Line
Procurement Officer
Delegate
PAU
Payment Processing
Specialist
Supplier
Prepare specification documents
Prepare specification documents
Provide inputProvide input
Identify potential suppliers
Identify potential suppliers
Seek Delegate approval (as req’d)
Seek Delegate approval (as req’d)
Seek manager approval(as req’d)
Seek manager approval(as req’d)
ManagerApprove
procurement approach?
Approve procurement approach?
Issue RFQ Issue RFQ
Obtain RFQ Obtain RFQ Understand specifications
Understand specifications Provide quoteProvide quote
Provide clarification(as req’d)
Provide clarification(as req’d)
Receive quotesReceive quotes
❹❹
❷❷
No,Amend specification
documents
No,Amend specification
documents
Yes
Yes
ConsiderationsFor procurements of
$20k - $79,999 a minimum of 3 quotes
must be sought.Below $19,999, there is
no requirement for quotes.
ConsiderationsFor procurements of
$20k - $79,999 a minimum of 3 quotes
must be sought.Below $19,999, there is
no requirement for quotes.
Agency B Procurement ProcessLevel 1 – Approach market
Provide advice and support (as req’d)
Provide advice and support (as req’d)
ConsiderationsThis approval could be done by either the Business Line Manager or the Delegate.
This largely depends on the complexity of the
procurement
ConsiderationsThis approval could be done by either the Business Line Manager or the Delegate.
This largely depends on the complexity of the
procurement
Provide advice and support (as req’d)
Provide advice and support (as req’d)
Provide inputProvide input
PAGE 14ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT PROCESSES UNDER $80,000 – AGENCY B PROCUREMENT V1.0
End UserBusiness Line
Procurement Officer
Delegate
PAU
Payment Processing
Specialist
Supplier
Assess submissions
Assess submissions
Select preferred supplier
Select preferred supplier
Recommend supplier to delegate
Recommend supplier to delegate
Notify successful supplier and send
draft contract
Notify successful supplier and send
draft contract
Negotiate contract
(as req’d)
Negotiate contract
(as req’d)
Grant Reg 9 approval?
Negotiate contract
(as req’d)
Negotiate contract
(as req’d)
Receive notification and draft contract
Receive notification and draft contract
Finalise contract
Finalise contract
Notify unsuccessful
suppliers
Notify unsuccessful
suppliers
Sign contract?
Sign contract
Sign contract
Register contract on
contract register
Register contract on
contract register
Unsuccessful suppliersReceive
notification
Unsuccessful suppliersReceive
notification
Sign contract
Sign contract
Agency B Procurement ProcessLevel 1 – Assess submissions and negotiate contract
❸❸
Yes
Finalise contract
Finalise contract
Yes
❺❺❺❺
Provide advice and support (as req’d)
Provide advice and support (as req’d)
Reg 9
Reg 9
Provide advice
Provide advice
CPG7.23
CPG7.23
CPG7.12
CPG7.12
CPG7.12
CPG7.12
FMA s.44
FMA s.44
ConsiderationsThe Contract Register is
used as the source of information for
AusTender reporting
ConsiderationsThe Contract Register is
used as the source of information for
AusTender reporting
Provide advice and support (as req’d)
Provide advice and support (as req’d)
Sign off on process(as req’d)
Sign off on process(as req’d)
CPG6.10
CPG6.10
NoRe-evaluate
submissions or refine requirements
No
Seek feedback if desired
Conduct reporting
obligations
Conduct reporting
obligations
Contract Register
Contract Register
CPG7.24
CPG7.24
PAGE 15ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT PROCESSES UNDER $80,000 – AGENCY B PROCUREMENT V1.0
End UserBusiness Line
Procurement Officer
Delegate
PAU
Payment Processing
Specialist
Supplier
Receive good(s)/
service(s)
Receive good(s)/
service(s)
Provide good(s)/
service(s)
Provide good(s)/
service(s)
Receive invoiceReceive invoice
Issue invoiceIssue invoice
Provide CFP* and invoice for
signature
Provide CFP* and invoice for
signature
Receive CFP and invoice
Receive CFP and invoice
Document process and
decisions
Document process and
decisions
Conduct reporting
obligations
Conduct reporting
obligations
Match CFP and invoice
Match CFP and invoice Pay invoicePay invoice
Agency B Procurement ProcessLevel 1 – Receive good(s)/ service(s) and pay
Create purchase order
request
Create purchase order
request
Submit purchase order
request
Submit purchase order
request
Process and raise purchase
order
Process and raise purchase
order
❹❹❹❹
CPG7.9
CPG7.9
CPG7.24
CPG7.24
Purchase order
Purchase order
Purchase order
request
Purchase order
request
InvoiceInvoice
InvoiceInvoice
CFP FormCFP Form
* Claim For Payment
ConsiderationsDelegate approval evidenced by delegate signature on CFP possible only if provided
ConsiderationsDelegate approval evidenced by delegate signature on CFP possible only if provided
Sign CFP
Delegation database
Delegation database
QSPQSP
Not standard practice, but ideal to ensure delegate approval can be substantiated, ensuring the procurement process is defensible
LEVEL 1 UNIT 3 GREEN SQUARE KINGSTON 2604 P +61 6282 8852 F +61 2 6282 8832 WWW.THINKPLACE.COM.AU
AUSTRALIA NEW ZEALAND
Process analysis
PAGE 17ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT PROCESSES UNDER $80,000 – AGENCY B PROCUREMENT V1.0
Agency B Procurement Process
Process issues, pressure points and suggestions for improvement
ISSUES
Current problems with the process
There is a general lack of understanding of FMA Act and CPGs, posing a risk to the department for possible breaches of CPGs and FMA Act
Need for role-specific training for procurement officers and delegates, PAU staff, specialists (e.g. legal), and general admin
Advice from Finance (DoFD) is not always consistent Procurement staff are not always clear on which
process should be used (e.g. open, select, direct, etc.)
AusTender issues−Reporting to AusTender process is not straight forward−Selection processes (e.g. select, direct) are a mandatory field in AusTender, reporting on the selection process is required only by Division 2 of the CPGs (i.e. why should it be a mandatory field for < $80,000)− Data integrity issues CPG Principles create cumbersome processes for
<$80,000−‘Efficient and effective’ may contradict ‘encouraging competition’ −The ‘value for money’ principle is not well understood (i.e.. may be interpreted as ‘cost)
PRESSURE POINTSElements of the process that affect efficiency
The workflow and documentation is largely manual, with usage of disparate systems and databases (e.g. QSP, contracts register, delegations database) that are not integrated with the workflow Three different approvals are required − To commence a procurement process− To approve specifications (incl. requirements,
value, timing, potential suppliers, etc.)− To approve spending (Reg 9), before a
contract is entered The requirements for Secretary/ Dep. Sec./
CFO approval for consultancies valued at $20,00 or more may create a bottleneck and unnecessary paperwork
The absence of a minimum requirement for documentation can drive risk averse behaviours (i.e. raising unnecessary paperwork that is not commensurate with the value/risk of the procurement)
SUGGESTIONS FOR IMPROVEMENTOutcomes from the workshop
Automate the process workflow and documentation as much as possible (e.g. end to end and documentation, from the development of a business case through to purchase order and contracts register
The refresh of the Framework (CPGs, Circulars etc.) should be informed by this Review
− Guidance should be provided in “plain English” and terms should not subjective or left to interpretation
Limit the requirements for documentation for low value procurements
− Provide agencies with one simple form Streamline reporting to AusTender Streamlining non-covered contracts was a
good initiative but needs more work Provide role-specific training for procurement
officers and delegates, PAU staff, specialists (e.g. legal), and general admin
PAU do not have visibility/ oversight of what the Line Area are doing. Should PAU be a process checkpoint?
LEVEL 1 UNIT 3 GREEN SQUARE KINGSTON 2604 P +61 6282 8852 F +61 2 6282 8832 WWW.THINKPLACE.COM.AU
AUSTRALIA NEW ZEALAND
About Us
We design strategies, services and organisationswww.thinkplace.com.au