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Procurement Update

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Title: 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
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