Procurement Update

1
Procurement Update

• Peter Brady, Assistant Director, Directorate of
  Commercial Policy, Commercial Policy and
  Practice Branch, Office of Special Counsel,
  Commercial Group, DMO

2
Procurement Policy
3
Commonwealth Procurement

• The Australian Government is one of the largest
  purchasers of goods and services in the country
• In FY 2009/10 it procured goods and services
  worth over 42.7 billion, of which Defence and
  DMO procurements account for 48
• In order to increase the value for money return
  on this expenditure there is an increasing need
  to improve and professionalise procurement.

4
Professionalisation

• Within Defence, it is estimated that over the
  next 15 years we will replace or upgrade 85 of
  its equipment. Spending over the next decade is
  likely to be up to 150 billion, going from 5.5
  to 7.5 billion per year. A key requirement to
  meet this challenge will be to deliver Defence
  procurement capability.
• Professionalisation provides encouragement and
  support towards developing procurement and
  contracting skills.
• It creates pathways to job family skills
  recognition, certification, qualifications, and
  professional memberships across an individuals
  career.
• Ultimately it delivers organisational procurement
  capability through individual professionalisation.

5
Mandatory Procurement Requirements

• Commonwealth Legislative Finance Framework (FMA
  Act, Regulations, CPRs, Commonwealth CEIs on
  Procurement, Finance Circulars, etc)
• Other Commonwealth Legislation (Work Health and
  Safety, Australian Consumer Law, Personal
  Property Security Act, Defence Trade Controls
  Bill 2011, Commercial Arbitration Bill, etc)
• Commonwealth Procurement Connected Policies
• Whole of Defence mandatory policy
• DMO mandatory policy

6
Legislative and Policy Framework
7
Procurement Connected Policies

8
Integrated Procurement Policy System
9
Procurement Policy Products
10
Procurement and Contracting Domain Role

• Develop the integrated procurement policy system
  (CPP Branchs role)
• Deliver contracting services
• governance compliance with legislation and
  mandatory Commonwealth and Defence policies,
  mandatory AusTender procurement reporting and due
  diligence requirements.
• probity fairness and impartiality, consistency
  and transparency, competitive process, security
  and confidentiality and no conflict of interest.
• provide accountable contracting advice and
  assistance that maximises procurement options and
  competitive tension.
• provide advice, assistance and services across
  the procurement lifecycle
• planning (acquisition strategy, assessing the
  market and developing request documentation)
• into contract (tender evaluation and negotiation
  to contract signature)
• contract management (contract changes and
  disputes) and
• disposal activities.
• provide advice on reducing critical commercial
  risks (including contract formation, liability,
  insurance, intellectual property, and engaging
  legal and related procurement advisers).
• provide advice on operational procurement
  category management issues.
• deliver value for money procurement outcomes
  through efficient, effective, economical and
  ethical procurement not inconsistent with the
  policies of the Commonwealth.
• Work as part of an integrated project team (as
  appropriate)
• Capability Development, DSTO, and the three ADF
  services.
• Project Management, Engineering, Logistics,
  Legal, Finance, Industry Policy and Programs.

11
Continuous Improvement
12
The Procurement Lifecycle
13
Improving Procurement Compliance

• A whole-of-system approach is being adopted to
• provide greater clarity through updated
  procurement policy (manuals and instructions),
  tools and templates (including audit checklists
  of mandatory requirements) and web guidance
• support this guidance through focused and updated
  training courses for initial development of
  skills and knowledge
• establish mandatory annual refresher courses to
  maintain currency
• strengthen the procurement and contracting job
  family model to highlight the need for specialist
  officers to perform procurement functions,
  establishing minimum operational skillsets,
  providing access to comprehensive vocational and
  university training, and professional
  certification opportunities
• review its delegation system to streamline and
  better align with legislative and risk management
  requirements and
• work with Defence and DMO Audits to develop an
  ongoing program of independent performance audits.

14
Procurement Professionalisation
15
Professionalisation Initiatives

• The top ten CPD professionalisation priorities
  for the Defence procurement and contracting job
  family are
• Supporting the job family and career lifecycle
  through the DTPPF and the DPPF.
• Maintaining the standards, currency,
  configuration management and evaluation of
  existing procurement courses (with a focus on
  assessment and AQF recognition/transportability
  where possible).
• Supporting the delivery of Defence procurement
  courses.
• Identifying and developing new procurement
  courses.
• Developing a job family Community of Practice.
• Supporting the professional recognition,
  certification and professional membership of job
  family members (including Studybank sponsorship).
• Support compliance with mandatory procurement
  obligations and support assurance and audit
  activities.
• Supporting the development of vocational and
  university procurement qualifications and
  linkages between them.
• Working with Defence industry to improve
  industrys procurement capability.
• Supporting the development of a Commonwealth
  procurement and contracting job family, as well
  as a whole of public sector and national
  procurement profession.

16
Certification Lifecycle

• Planning
• Workshop
• Recognition of Prior Learning (RPL)
• Evaluation of Job Family Framework
• Professional Membership and Certification
• Continuing Professional Development

17
Procurement Job Family Career Lifecycle
18
Common Foundation Training
19
Supporting Individual Capability

• Access to nationally recognised qualifications in
  Government Procurement and Contracting.
• Opportunity to gain qualifications required for
  membership and certification with professional
  bodies such as the Chartered Institute of
  Purchasing and Supply Australasia (CIPSA) and the
  Australian Association of Procurement and
  Contract Management (AAPCM).
• An opportunity to take personal responsibility
  for ongoing learning and career development
  with links to Employee Performance Agreements.
• Job Family context of recognition enhances career
  progression for individuals and their value to
  Defence.

20
Procurement Course Updates
SP Simple Procurement CP Complex
Procurement Consolidated encompasses 3 units from
the PSP Training Package
N Title V Version Date Notes
1 Procurement Overview 3 Oct 2011 Future version in progress
2 SP Carry Out Basic Procurement (Face to Face) 9 Jun 2011
3 Simple Procurement (Carry out basic procurement and Refresher eLearning) 1 Dec 2011 Future version in progress
4 CP Consolidated Complex (Face to Face) 5 Jun 2011
5 CP Plan procurement (Distance) 1 Dec 2011
6 CP Develop and distribute request for offer (Distance) 1 Dec 2011
7 CP Select providers and develop contracts (Distance) 1 Dec 2011
21
Procurement Course Updates Continued
N Title V Version Date Notes
8 CP Dispose of Assets (Face to Face) 7 Sept 2011 Future version in progress. Estimate handover to Defence Training - March 2012.
9 CP Dispose of Assets (Distance) 7 Oct 2010 Course has not been updated to meet PSPv4.1. Update required.
10 CP Manage Contracts - Interim Only (Face to Face) Feb 2012 Agreement with DLSN to retitle Administer Contracts course - revised to include minimum changes to meet PSP4.1 Upgrade as an interim measure only.
10 CP Manage Contracts (Face to Face) NA NA Future version in progress.
11 CP Manage Contracts (Distance) 5 July 2010 Course has not been updated to meet PSPV4.1 Upgrade requirement. Unavailable as a delivery option.
12 CP Refresher eLearning NA NA Scheduled for availability 30 September 2012.
22
Postgraduate Strategic Procurement Courses

• The Australasian Procurement and Construction
  Council (APCC) has worked with stakeholders,
  including DMO, to develop a series of
  postgraduate Masters of Strategic Procurement
  courses.
• These are now available at the following
  institutions
• WA Curtin University of Technology (CUT)
• QLD Queensland University of Technology (QUT)
• VIC Royal Melbourne Institute of Technology
  (RMIT)
• ACT University of Canberra (UC)
• SA University of South Australia (UniSA)
• NSW University of Technology Sydney (UTS)
• The Executive Masters of Business (Strategic
  Procurement), sponsored by DMO and delivered by
  QUT, is also available for executive procurement
  practitioners.

23
Strategic Procurement Websites

• Curtin University of Technology, WA
• http//www.business.curtin.edu.au
• Queensland University of Technology, Queensland
• http//www.bus.qut.edu.au/embsp
• RMIT University, Victoria
• http//www.rmit.edu.au/gradbuslaw
• University of Canberra, ACT
• http//www.canberra.edu.au
• University of South Australia, SA
• http//www.unisanet.unisa.edu.au/programs
• University of Technology, Sydney, NSW
• http//www.business.uts.edu.au/pg/supplychain

24
Questions