Section C: Procurement Planning

1. State agencies must involve the Department of Finance in Procurements from planning activities onwards, in accordance with the below:

Goods and Services (excluding Delivering Community Services in Partnership Policy Procurements)

As the facilitator for all Procurements with a Total Estimated Value at $250,000 and above, unless: 

(a) another level of involvement is approved by the applicable Assistant Director (at a minimum) of Buildings and Contracts, Department of Finance; or 
(b) otherwise specified in an Agency Specific Procurement Direction; or 
(c) purchasing from Standing Offers, except where the Buying Rules require the Department of Finance’s involvement. 

Works

As the project manager for all Procurements, unless: 
(a) another level of involvement is approved by the applicable General Manager (at a minimum) of Buildings and Contracts, Department of Finance; or 
(b) otherwise authorised in an Agency Specific Procurement Direction; or 
(c) the State agency is listed below and is undertaking works Procurement authorised by statutory powers in their agency’s administered enabling legislation and/or legislation for which the agency may principally be assisting the Minister: 

• Animal Resources Authority;
• Arts and Culture Trust; 
• Burswood Park Board;
• Chemistry Centre (WA)
• Department of Biodiversity, Conservation and Attractions:
  • Botanic Gardens and Parks Authority;
  • Rottnest Island Authority;
  • Zoological Parks Authority;
• Department of Communities – Housing Authority;
• Department of Energy, Mines, Industry Regulation and Safety; 
• Department of Planning, Lands and Heritage;
  • Western Australian Planning Commission;
  • Heritage Council of Western Australia;
• Department of Transport;
• Department of Water and Environmental Regulation;
• Main Roads WA (Commissioner of Main Roads);
• Metropolitan Cemeteries Board;
• Metropolitan Redevelopment Authority;
• Public Transport Authority of Western Australia;
• Racing and Wagering Western Australia;
• The National Trust of Australia (W.A.);
• Western Australian Greyhound Racing Association;
• Western Australian Sports Centre Trust (VenuesWest); and
• WorkCover Western Australia Authority.

C2.1 Undertake Appropriate Procurement Planning

1. State agencies must undertake research, analysis and planning in line with the risk, locality, value and strategic importance of the Procurement.
2. When choosing the Procurement method, State agencies must consider the nature of the market, desired outcomes, complexity, risk, process efficiency and the costs imposed on Suppliers by participating in the Procurement.
3. State agencies must consider whether the Procurement aligns with and is able to further any of Government’s social, economic and environmental policy objectives or strategies.

C2.2 Purchase from Available Standing Offers

1. State agencies must purchase from mandatory Common Use Arrangements and mandatory State agency led Standing Offers (in accordance with the relevant Buying Rules), where an arrangement meets their purchasing requirements, except where:
   1. the State agency seeks to procure from:
      1. a registered Australian Disability Enterprise; or
      2. a Registered Aboriginal Business; or
   2. in the case of CUAs:
      1. an Authorised Officer from the Department of Finance approves alternative arrangements; or
      2. an Authorised Officer from the State agency approves purchasing outside the CUA to respond to an Emergency Situation, and records this decision in their exemption register (see Rule F4);
   3. in the case of State agency led Standing Offers, an Authorised Officer from that State agency approves alternative arrangements.

C2.3 Maximum Contract Terms

1. Contract service terms must not be set to exceed five years when establishing the contract (i.e. five years from the day the services commence, or Standing Offer commences operation).
2. However, a State agency is not required to comply with paragraph (1) where an Authorised Officer determines that a business need informs a requirement to exceed five years, in which case, the State agency must:
   1. demonstrate that at least one of the following applies:
      1. significant benefits will be delivered to the State; or
      2. there are sound technical, commercial or operational reasons for doing so; and
   2. have the Authorised Officer approve the term in a written record; and
   3. record the decision in the State agency’s exemption register.
3. A State agency is not required to comply with paragraph (1) when conducting a Procurement in accordance with the Delivering Community Services in Partnership Policy.

C2.4 Seek Approval for Cooperative Procurements

(1) State agencies seeking to establish a Cooperative Procurement Arrangement (as defined and provided for in Part 5 of the Act) must seek approval from the Department of Finance in accordance with the tables below.

Multi-User Arrangement Model

* Note: Approval is not required where the arrangement is authorised by a written law or procurement direction.

Distributor Model

* Note: Approval is not required where the arrangement is authorised by a written law or procurement direction.

Group Buying Arrangement Model

* Note: Approval is not required where the arrangement is authorised by a written law or procurement direction.

C2.5 Standing Offer Arrangements with Regional Impact

1. State agencies must have the approval of their Accountable Authority before establishing State-wide Standing Offers that are mandatory outside the Metropolitan region.
2. When establishing Standing Offers with delivery points outside the Perth Metropolitan region, State agencies must:
   1. make best endeavours to invite regional businesses to participate in the Procurement; 
   2. consider the feasibility of making the Standing Offer non-mandatory in areas where there is no representation from businesses operating within the region; and
   3. where a Standing Offer, or category of Procurement under a Standing Offer, has only Western Australian businesses, implement Buying Rules that encourage the use of local regional Suppliers with operational offices near to the contract delivery point.

C2.6 Manage Risk

1. State agencies must establish processes to identify, analyse, allocate and manage risk when conducting Procurement Activities, commensurate with the scale, scope and risk of the Procurement.

1. (1)    State agencies must undertake and document their procurement planning for Procurements with a Total Estimated Value of $5 million and above, in accordance with the table below. 

   Type of Procurement	Procurement Planning Requirements
   Goods and Services (including Delivering Community Services in Partnership Policy procurements)	Procurement plan
   Works	Include procurement planning information within relevant project documentation, such as in a: Procurement plan Project definition plan Project management plan and/or Works category plan (outlining a common procurement approach for pre-defined type of works (e.g. Construct Only).

      

2. State agencies must also undertake appropriate assurance and review of their procurement planning documentation required under paragraph (1) by:
   1. for goods and services (including Community Services) Procurements, submitting the procurement planning documentation to the Relevant Review Committee; and
   2. for works Procurements, by applying documented assurance and review measures established by the State agency, unless:
      1. the State agency and the Department of Finance agree under Rule F8 to use a Relevant Review Committee; or
      2. an agency specific procurement direction requires the State agency to submit the procurement planning documentation to a Relevant Review Committee.
3. If a State agency is required to have documents reviewed by the Relevant Review Committee under paragraph (2), the State agency is not required to submit procurement planning documentation where:
   1. the Procurement has been exempted by the Relevant Review Committee as part of their agency’s Strategic Forward Procurement Planning process under Rule F7; or
   2. the State agency submits an exemption request outlining circumstances that justify an exemption, and the Deputy Director General – Advisory Services, Department of Finance approves that request.
4. An exemption under paragraph (3) must be in writing and recorded in the State agency’s exemption register.

C4.1Use the Appropriate Procurement Method

1. State agencies must use the minimum competitive requirement corresponding with the values specified in the table below, unless:
   1. using an exception within Rule C4.2 ‘Exceptions to Procurement Methods’; or
   2. where granted an exemption under Rule C5.2 ‘Exemption from Appropriate Procurement Method’.

2. The monetary value is based on the Total Estimated Value of the Procurement, which includes any extension options and GST.
    

   Monetary Value	Minimum Competitive Requirements
   Up to $50,000	Direct Sourcing
   Between $50,000 and $250,000	Limited Sourcing
   $250,000 and above	Open Advertisement

3. A Procurement must not be divided into separate parts for the dominant purpose of avoiding the relevant minimum competitive requirement.

C4.2 Exceptions to Procurement Methods

1. The minimum competitive requirements in Rule C4.1 does not apply when:
   1. purchasing from a Common Use Arrangement or a State agency led Standing Offer in accordance with the Buying Rules;
   2. purchasing from a Registered Aboriginal Business or Australian Disability Enterprise; or
   3. where the direct negotiations or the preferred service provider provisions of the Delivering Community Services in Partnership Policy are applied.
2. All other applicable Rules and processes that correspond with the value of the Procurement must still be followed.

C5.1 Obtain Advice from Finance Before an Exemption is Approved

1. Where the Department of Finance is involved in the Procurement (under Rule C1), State agencies must first obtain written advice from the Department of Finance, before seeking an exemption from the appropriate procurement method under Rule C5.2.
2. The requirement to obtain advice does not apply in Emergency Situations.
    

C5.2 Exemption from Appropriate Procurement Method

C5.2.A General Rule

This Rule only applies where the Procurement is not a Covered Procurement.

1. A State agency is not required to comply with Rule C4.1 ‘Use the Appropriate Procurement Method’, if:
   1. an Authorised Officer determines that the specified procurement method is not appropriate for the relevant Procurement; or
   2. an Emergency Situation arises.
2. In both situations above, the decision and justification for the decision must be recorded in writing.

C5.2.B Covered Procurement

Where the Procurement is a Covered Procurement, apply the Rule in the table below instead of the general requirement above.

Covered Procurement Rule

1. For Covered Procurements, a Covered State agency is not required to comply with Rule C4.1 ‘Use the Appropriate Procurement Method’ if an Authorised Officer determines and records in writing that any of the circumstances listed below apply:
   1. In response to a previous Request:
      1. no responses were received;
      2. no conforming responses were received; or
      3. the responses submitted were collusive; and the Covered State agency does not substantially modify the Request;
   2. There is a Bona Fide Sole Source of Supply;
   3. An Emergency Situation arises;
   4. The goods are purchased on a commodity market;
   5. A Covered State agency procures a prototype in the course of a contract for research, experiment, study or original development;
   6. There is a need to integrate with an existing contract, project or standard operating environment and an alternative is not suitable;
   7. An existing works requires, due to unforeseeable circumstances, additional works, in order to complete the existing works contract, where the additional works are within the objectives of the original Request documentation and do not exceed 50 per cent of the value of the original contract;
   8. Purchases are made under exceptionally advantageous conditions, such as from unsolicited innovative proposals; or
   9. A contract is awarded to the winner of a design contest, provided the contest has been run in a manner that is consistent with free trade agreement obligations.
2. Where an exemption has been granted under paragraph (1) , a brief description of the circumstances justifying the use of the exemption must be published on Tenders WA.
3. State agencies must not use an exemption from the minimum procurement method to discriminate against domestic or international suppliers.

C5.3 Record in Exemption Register

1. State agencies must record exemptions from Rule C4.1 in their exemption register.

C5.4 No Discriminatory Exemptions

1. State agencies must not use an exemption from the minimum procurement method for the dominant purpose of avoiding competition.