Procurement Planning for Individual Purchases Guidelines

The first step in any procurement process is defining what you need.  This is not always as simple as it sounds.

Things to consider include:

• is there something you can do to reduce demand for the good or service?
• can you source what you need from another agency?
• can you source what you need from resources already within your agency?
• have you consulted with the user of the good or service you are buying to ensure that the good or service will actually meet their needs?

This needs identification process is particularly important when buying community services. State agencies must, when procuring community services, work collaboratively with industry to define and articulate community service level outcomes. This requirement is included in the Delivering Community Services in Partnership policy.

In addition, when procuring community services you might like to use a ‘program logic’ model, which is a visual statement of how a service will solve an identified problem.

Finance offers further guidance about program logic in the Planning and Designing Community Services training session, and in the Outcomes-based Program Logic template and guide.

An important step in defining the need is engaging with stakeholders.

Stakeholders are individuals, groups or organisations that have knowledge of or are affected by the proposed purchase.

Stakeholder identification and analysis is encouraged so anyone with an interest in the proposed purchase receives appropriate communication from the relevant State agency.

A few simple questions can often assist in identifying stakeholders:

• who is the good or service for?
• who is affected by the service?
• who can influence the good or service?
• who is interested in the good or service?
• who can deliver the good or service?

Unless the purchase is sensitive in nature, you should engage with as many stakeholders as possible to get a variety of viewpoints and ensure a robust engagement process. The ideal stakeholder engagement process should be ongoing and include thorough planning and reporting.

Although stakeholder engagement is important as a means to better define your requirements, it is particularly important when procuring community services. Community services procurement is characterised by its emphasis on co-design, which is a requirement of the Delivering Community Services in Partnership policy.

Conducting stakeholder analysis will help identify current or potential issues with the procurement or service delivery. You can also learn from stakeholders’ experiences and use this throughout the process.

The stakeholder engagement process should:

• be built on common values and vision;
• be a ‘two-way’ consultation process so that all parties have the opportunity to exchange views and information, listen to each other and have their issues addressed;
• be free from manipulation or coercion;
• be characterised by a long-term commitment from all parties;
• involve a representative group of stakeholders;
• not make commitments that can’t be delivered;
• be developed early enough to identify and plan for key issues and operational decisions; and
• disseminate all information in advance to the relevant stakeholder and present it an easily understandable format.

Stakeholder engagement should be delivered by staff with strong communication and conflict resolution skills, alternatively the agency can engage an expert facilitator.
Internal processes within the agency should also be developed and could include:

• stakeholder engagement techniques that are culturally appropriate;
• use of appropriate technology to enhance level of awareness amongst stakeholders;
• processes that reflect timeframes, local realities and languages;
• good record keeping practices of who has been consulted and key issues raised;
• processes to follow-up on issues raised during consultation;
• processes to seek clarification of next steps during consultation; and
• outline clear roles, objectives and activities to be achieved.

Be sure to look at previous stakeholder engagement processes that were undertaken in similar procurements to identify any potential problems and solutions.

What to consider when planning your stakeholder engagement

Considerations include:

• logistics – timing, resources, roles and responsibilities;
• key messages to communicate – ensure they are clear (use plain language and avoid jargon), concise, accurate (check with your colleagues), delivered in a timely manner and are appropriate for each stakeholder;
• risks – are there any risks with specific stakeholders?; and
• be open and honest about your objectives and planned activities. Make sure they are achievable

Possible methods of engagement to consult and communicate with key stakeholders could include:

• surveys – using a quantitative research method to gauge views, experiences and behaviours;
• workshops – facilitating events so stakeholders can actively work and collaborate on a common objective, problem or task;
• meetings – using meetings that are open to all interested rather than those specifically invited;
• expert panel approach – gather opinions from a range of experts on the proposed procurement; and
• interviews – using intensive face-to-face meetings and telephone conversations.

Any person undertaking “lobbying activities” in Western Australia must comply with a Code of Conduct and must provide information as a registrant on the official Register of Lobbyists.

The Public Sector Commissioner has the responsibility of maintaining both the Code of Conduct and the Register.

Lobbying activity as defined in Integrity Lobbyists (Lobbyists) Act 2016 means communicating with a government representative for the purpose of influencing, whether directly or indirectly, State government decision making.

The aim of the Integrity Lobbyists (Lobbyists) Act 2016 is to promote and enhance public confidence in the transparency, integrity and honesty of dealings between government representatives and people who undertake lobbying on behalf of others in society. The Act not only provides for the registration of people who undertake lobbying on behalf of third parties and for the issuing of a code of conduct for registered persons in their dealings with government, but also prohibits registered persons from agreeing to receive payments or other rewards that are dependent on the outcome of lobbying activities.

The Register allows government officials to know who a lobbyist represents. This can help officials to avoid conflicts of interest. So if you are dealing with any person who you think fits the definition of a lobbyist please check the lobbyist register which is available at http://www.lobbyists.wa.gov.au.