Strengthened Commonwealth Procurement Rules Come Into Force

29 June 2012

The new Commonwealth Procurement Rules (CPRs) will come into effect on 1 July, providing Australian Government officials with streamlined rules to achieve value for money when procuring goods and services
These rules will improve the language and consistency with procurement processes across government agencies, Minister Wong said
It will help reduce unnecessary complexity and costs for government agencies and make it easier for businesses to sell to government.
Key changes include:
  • The CPRs are now rules (previously, they were Guidelines);
  • Value for money has been reworded to clarify that it incorporates other policies of the Commonwealth and applies to the entire procurement process;
  • The AusTender 42 day reporting requirements has been clarified; and,
  • A new exemption from Division 2 has been added for procurement from a SME with at least 50 per cent Indigenous ownership.
The CPRs do not alter existing procurement policy, rather they replace the Commonwealth Procurement Guidelines.
The CPRs also focus on whole-of-government arrangements, in particular coordinated procurements.
Coordinated procurements have improved the value for money achieved by agencies and have reduced costs for agencies and tendering costs for suppliers, Minister Wong said.
A recent inclusion has been the Whole-of-Australian-Government Travel Services which have been designed to promote simplicity and efficiency for official travel. The second phase has now been finalised.
Following competitive tender processes, the AOT Group has been appointed as the accommodation program manager, and a panel of two rental car providers Thrifty Car Rental and Europcar Australia have also been appointed. Diners Club Australia has been appointed as the sole provider of travel cards.
These new arrangements will mean a simpler approach to booking, paying and reporting travel across government, which will deliver savings in the future and ensure all government agencies can expect consistent services and pricing.
These savings are in addition to the airline and travel management company arrangements put in place in 2010, which have already delivered $240 million in savings from 2010-11 to 2015-16.
The Gillard Government is committed to continually improving access to the Australian Government marketplace, worth nearly $33 billion per annum, Minister Wong said.
This is especially important for small and medium enterprises, Indigenous businesses and competitive disability enterprises.
The changes were released on 2 April 2012 to enable agencies a suitable transition timeframe.
AusTender continues to be the primary source for procurement information for the wider government and the private sector.
The Commonwealth Procurement Rules clarify agency reporting requirements on AusTender to ensure ongoing transparency and accuracy of procurement contract data.
The Commonwealth Procurement Rules can be accessed at http://www.finance.gov.au/procurement/procurement-policy-and-guidance/commonwealth-procurement-rules/index.html