Procurement Planning Guidelines

The Procurement Planning Guidelines assist State agencies when buying goods, services, community services and works.

Effective procurement planning is vital to ensuring value for money is achieved.

Procurement planning makes it easier for suppliers to do business with government once an appropriate purchasing strategy has been selected.

Procurement practitioners should ensure that the strategy chosen is commensurate with the risk, value and complexity of the good, service or works required; and that the Government’s social, economic and environmental priorities are considered.

Part C of the Western Australian Procurement Rules contain requirements in relation to procurement planning. In addition, Parts A and B outline the underlying principles that must be followed when buying on behalf of the State of Western Australia – these are the requirement to ensure procurement decisions achieve value for money; and that procuring officers act ethically – with integrity and accountability. 

This page contains links to Guidelines that will assist you to apply the Western Australian Procurement Rules when planning a procurement. 

See the Procurement Guidelines page for the complete list of guidelines published by the Department of Finance to support compliance with the Western Australian Procurement Rules. 

Achieve Value for Money

This Guideline provides information on:

  • value for money; and
  • consideration of cost and non-cost factors, including Government 's social, economic and environmental priorities. 

Act Ethically – with Integrity and Accountability

This Guideline provides guidance on:

  • acting ethically and with integrity;
  • accountability
  • promoting and demonstrating high standards of transparency and accountability
  • declaring and managing conflicts of interest; and
  • keeping adequate records.

Strategic Forward Procurement Planning by State Agencies

This Guideline includes guidance on State agencies’ obligations with respect to forward procurement planning under Rule F6 of the Western Australian Procurement.

This Guideline: 

  • focuses on how forward procurement planning can assist an agency with the strategic management of its contracts; and 
  • includes a step by step guide on how to identify and report relevant procurements in a Strategic Forward Procurement Plan (SFPP). 

State agencies must submit their Strategic Forward Procurement Plans annually to the Department of Finance.

Procurement planning for individual purchases

This Guideline provides information on: 

  • defining your purchase need;
  • engaging stakeholders; and
  • lobbyists and the procurement process. 

Develop Business Case

All procurements should be planned. It is important to ensure that the level of planning itself represents value for money. In many cases an email, quote form, or brief one or two page overview will be sufficient, however a formal business case should be prepared for any procurement processes that are likely to be high-risk, high-value or complex. 

This Guideline provides further information on: 

  • the scope and purpose of a business case
  • research, analysis and market sounding; and 
  • budget and approvals.

Types of Agreements

Western Australian Procurement Rule D1.2 requires you to use an appropriate form of contract.

This Guideline provides information on: 

  • the types of agreement commonly used in Government; and 
  • Standing Offer Arrangements, including those with regional impacts.

Manage Risk

Western Australian Procurement Rule C2.6 requires State agencies to manage risk. A number of factors, including value and complexity, will impact on the level of risk associated with a procurement. These risks need to be actively managed.

Often, procurement processes exist as part of a project and consequently the risk management process for the project may address procurement risks. However, where this is not the case, it is highly recommended that the principles of risk management be applied to procurement processes.

This Guideline provides:

  • information on  managing risk in the procurement context (including foreign exchange risk which arises when buying goods or services from overseas) and procurement insurance requirements; and
  • links to risk management tools such as the Risk Workbook. 

 

Purchase from an Aboriginal Business or Australian Disability Enterprise

The Western Australian Procurement Rules recognise the importance of fostering opportunities to procure from Aboriginal businesses and Australian Disability Enterprises. 

In addition, the Aboriginal Procurement Policy (General Procurement Direction 2021/08) sets targets for the percentage of government contracts awarded to registered Aboriginal businesses. 

This Guideline provides more information on buying from registered Aboriginal businesses and Australian Disability Enterprises.

Buying Journey 1 - Social Procurement also provides a step by step guide for State agencies to follow when buying from an Aboriginal business or Australian Disability Enterprise. 

Other information may be found in the APP Implementation Guide.

Purchasing from Common Use Arrangements and Agency Standing Offers

Western Australian Procurement Rule C2.2 requires State agencies to buy from mandatory Common Use Agreements (CUAs) and mandatory State agency led standing offers.

This Guideline provides information on:

  • CUAs; and
  • State agency led standing offers. 

For a list of all CUAs and their Buying Rules, refer to CUAs.

Engaging Consultants

The engagement of consultants is appropriate when specific skills, knowledge or expertise are required to carry out certain functions and are not available within a State agency or elsewhere within the public sector.

Before a consultant is engaged, State agencies should ensure there is clear justification as to why their services are needed, and that approval has been received from an officer with appropriate delegation.

This Guideline provides information on: 

  • When it is and isn't appropriate to engage consultants;

  • Contracts for the provision of services versus an employer-employee relationship; 

  • Consultant contract specifications;

  • Other considerations such as intellectual property, due diligence, conflicts of interest and sensitive information. 

Cooperative Procurement

The Western Australian Procurement Rule C2.4 requires State agencies to seek approval for Cooperative Procurement.

This Guideline provides further information on:

  • the types of cooperative procurement;
  • when you would use a cooperative procurement;
  • how to access contractual agreements established by another; and
  • how to enter into cooperative procurements.

Develop Procurement Plan

Western Australian Procurement Rule C3 requires State agencies to develop a procurement plan for purchases valued at $5 million and above. 

Procurement plans can assist you to effectively plan the implementation and delivery of your requirement. 

Giving adequate time and thought to planning your procurement will ultimately lead to better outcomes. A template is available to help you complete your procurement plan.

If your procurement is valued about $5 million, you also need to ensure your plan is reviewed by the relevant review committee – State Tender Review Committee; Community Services Procurement Review Committee; or, for works, an alternative committee approved by the Department of Finance.

This Guideline provides further information on:

  • procurement plans; and
  • information commonly considered in procurement plans – procurement method and contract term.

Promoting Innovation

Innovation is now recognised as an independent community outcome in the Social Procurement Framework. 

This Guideline includes:

  • information on how to drive innovative outcomes through procurement, particularly when engaging small to medium enterprises
  • sample qualitative criteria that may be appropriate to incorporate into relevant Request documents. 
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