Appendix 1: Defined terms

The following words and phrases have the following meanings when used in the Rules, unless the context otherwise requires.

Word or Phrase and Meaning

Act

Procurement Act 2020 (WA)

Accountable Authority

A State agency’s accountable authority is as defined in section 3 of the Financial Management Act 2006 (WA).

Australian Disability Enterprise

Australian Disability Enterprises (ADEs) are commercial businesses that employ people with disability.  A complete list of approved ADEs is available from the Australian Disability Enterprises website (https://buyability.org.au/directory/).

Authorised Officer

For a State agency, the Accountable Authority, or an Officer of the State agency duly delegated or authorised.

Bona Fide Sole Source of Supply

A situation where it has been clearly established that only one Supplier can supply the requirement. This can be established either through a periodic test of the market or consultation with appropriate industry bodies, manufacturers and other sources of expertise.

Buying Rules 

The rules of access and buying in relation to Standing Offers. These may be published and made available on the internet as online buyer information.

Common Use Arrangements

Common Use Arrangements are Standing Offer arrangements administered by the Department of Finance, typically available for use by all State agencies and other authorised bodies.
Refer to the Department of Finance Authorised Bodies Information Page.

Community Services

Community Services Procurements are those conducted in accordance with the Delivering Community Services in Partnership Policy, and include services:

1. that provide support to sustain and nurture the functioning of individuals and groups
2. to address physical, social and economic disadvantage, maximise their potential
3. to enhance community wellbeing

Types of Community Services include (but are not limited to): 

1. services that contribute to the building of capacity within the community to respond positively to an identified need
2. services required to address disadvantage for which a collaborative approach is required with the community
3. services that encourage the involvement of volunteers, increased business or community support, or the personal empowerment of recipients of the service, or 
4. services that contribute to the ability of people to live and participate in the community

Covered Procurement

A Covered Procurement is a Procurement by a Covered State agency, that is not excluded as described below, where the Total Estimated Value:

1. is equal to or exceeds the monetary value in the table in the Overview section of the Rules, and
2. in all instances where the Total Estimated Value cannot be estimated

A Procurement that falls into any of the categories of Procurement listed in Appendix 3 is excluded. 

Note: further details can be found at the Commonwealth Department of Foreign Affairs and Trade website: Free Trade Agreements.

Covered State agency

A State agency listed in Appendix 4: List of Covered State Agencies, where ‘Yes’ appears in the Covered State agency column of the table.

Days

Days means calendar days.

Department of Finance

The Act gives functions and powers to the Chief Executive Officer of the Department of Finance, and the Department of Finance assists with the carrying out of those functions and powers.  A reference to the Department of Finance is to the Department CEO as assisted by the Department of Finance.

Direct Sourcing

The Procurement of goods, services and/or works by placing an order with the Supplier of choice, without seeking any other bids.

Emergency Situation

A situation brought about by unforeseeable event(s) that requires urgent action.

Limited Sourcing

A market approach to more than one Supplier, but not all Suppliers. 

Officer

An officer of a State agency assigned by the State agency to manage the relevant Procurement Activity.

Open Advertisement

A market approach open to all Suppliers; or with respect to Standing Offers, all eligible suppliers.

Procurement

Procurement is defined in Part 1 section 4 of the Act to include:

1. obtaining goods, services or works by purchase, lease, licence, public private partnerships or other means
2. disposing of goods or works

The subject matter in section 9(2) of the Act is not considered Procurement.
For further context, see sections 4 and 9 of the Act.

Procurement Activities

Procurement Activities is defined in Part 1 section 4 of the Act to mean decisions or other things done in the course of, or as a result of, a process to procure goods, services or works.

Project Bank Account

A project bank account uses a dedicated trust account to enable payments to be made directly and simultaneously from the State agency to the head contractor and participating subcontractors on a project.

Refer to the Department of Finance Project Bank Account Information Page.

Proprietary Product

A product that is identified by reference to a particular trademark or trade name, patent, copyright, design, type, specific origin, producer or supplier.

Registered Aboriginal Business

A business listed in an accepted directory of registered Aboriginal Businesses, as identified in the Aboriginal Procurement Policy Implementation Guide.

Relevant Review Committee

The appropriate review committees are:

1. for goods, services and, where applicable, works Procurements - the State Tender Review Committee
2. for Procurements conducted under the Delivering Community Services in Partnership Policy - the Community Services Procurement Review Committee

Request 

The relevant approach to market documentation.

This can include a Request for Tender, Request for Proposal, an Expression of Interest documentation, or a Request for Quotation, as the circumstances require.

Significant Operational Risk

A risk will constitute a significant operational risk where it:

1. would impede law enforcement
2. may prejudice fair competition between suppliers
3. would prejudice the legitimate commercial interests of particular persons, including the protection of intellectual property
4. would otherwise be contrary to the public interest

Standing Offer

A standing offer is a type of contract that allows for purchases to be made under it during its term of operation and sets out the terms and conditions on which purchases will occur.
This includes Standing Offers with a single supplier; or multiple suppliers and Common Use Arrangements.

State agency

State agency has the meaning given by section 5 of the Act. Appendix 4 provides a list of State agencies.

Statutory Authority

Statutory Authority means an entity listed in Schedule 1 of the Financial Management Act 2006 (WA), other than a university.

Strategic Project

A project that meets the requirements to be declared a strategic project under the Western Australian Jobs Act 2017 (WA). 
Further information can be found at the WA Industry Link Information Page.

Sub-department

Sub-department has the meaning given in section 3 of the Financial Management Act 2006 (WA).

Sufficient Time

Sufficient Time means the period of time necessary to allow Suppliers to obtain the approach to market documentation and submit a response, taking into account:

1. the required minimum advertising time limits
2. whether any additional time should be added to the minimum advertising time limit to take into account:
   1. the nature and complexity of the Procurement
   2. the time necessary for submission of responses from foreign as well as domestic locations
   3. the State agency’s own reasonable needs

Supplier

A party that supplies or is seeking to supply goods, services or works.

Total Estimated Value

The total estimated value of a Procurement is a monetary value of the total cost of the Procurement to the State agency, including all extension options, and is inclusive of GST.
For Standing Offers, the total estimated value is the anticipated expenditure of all individual contracts established under it.

Tenders WA

The government’s electronic lodgement platform providing direct access to government contracting information, including early tender advice to Suppliers, advertising of Requests, electronic tender lodgement, and award information of government contracts valued at $50,000 and above.

Variation

A variation is an agreed change to the contract (for example, in scope or in price). 
Variations do not include:

1. exercising an extension option provided within the original contract, or 
2. spending more (or less) under a Standing Offer arrangement than originally estimated (where there is no contractual maximum expenditure cap)