CPRs Quick Guide 2012 - Department of Finance and Deregulation
CPRs Quick Guide 2012 - Department of Finance and Deregulation
CPRs Quick Guide 2012 - Department of Finance and Deregulation
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The Commonwealth Procurement Rules<br />
e Commonwealth Procurement Rules (<strong>CPRs</strong>) represent the Government’s policy<br />
framework under which agencies govern <strong>and</strong> undertake their own procurement.<br />
e <strong>CPRs</strong> combine both Australia’s international obligations <strong>and</strong> good practice.<br />
Together, these enable agencies to design processes that are robust, transparent<br />
<strong>and</strong> instil con dence in the Australian Government’s procurement activities.<br />
is encourages agencies to design processes that allow for innovative solutions<br />
<strong>and</strong> that re ect the scale, scope <strong>and</strong> risk <strong>of</strong> the procurement.<br />
e <strong>CPRs</strong> will take e ect from 1 July <strong>2012</strong>. ey will replace the Commonwealth<br />
Procurement <strong>Guide</strong>lines (CPGs) issued in December 2008.<br />
e <strong>CPRs</strong> apply to Financial Management <strong>and</strong> Accountability Act 1997 (FMA Act)<br />
agencies <strong>and</strong> relevant Commonwealth Authorities <strong>and</strong> Companies Act 1997<br />
(CAC Act) bodies.<br />
e <strong>CPRs</strong> are available at www. nance.gov.au/procurement.<br />
The Review<br />
e <strong>Department</strong> <strong>of</strong> <strong>Finance</strong> <strong>and</strong> <strong>Deregulation</strong> (<strong>Finance</strong>) has overseen a collaborative<br />
process to develop the <strong>CPRs</strong>. <strong>Finance</strong> has engaged with agencies through seminars,<br />
<strong>and</strong> senior procurement o cials working groups <strong>and</strong> has distributed dra s to<br />
procurement <strong>and</strong> Chief Financial O cer areas for comment in collaboratively<br />
redeveloping the <strong>CPRs</strong>.<br />
e review has:<br />
• Repositioned <strong>and</strong> streamlined the CPGs from guidelines to a rule set;<br />
• Ensured consistent <strong>and</strong> clear use <strong>of</strong> terminology; <strong>and</strong><br />
• Rede ned the procurement methods as recommended by the Australian<br />
National Audit O ce (ANAO) audit report No. 11 2010-11 Direct Source<br />
Procurement.<br />
Transition<br />
e <strong>CPRs</strong> come into e ect on 1 July <strong>2012</strong>. e CPGs will be revoked to<br />
coincide with this.<br />
New guidance to complement the <strong>CPRs</strong> will also be released on 1 July <strong>2012</strong>.<br />
To prepare for the <strong>CPRs</strong>, agencies should consider reviewing <strong>and</strong> updating:<br />
• Internal documentation (i.e. CEIs <strong>and</strong> other operational guidance);<br />
• Any procurement templates <strong>and</strong> other agency speci c requirements; <strong>and</strong><br />
• Internal agency procurement training.<br />
For further information regarding the transition to the <strong>CPRs</strong> contact your central<br />
procurement area.<br />
<strong>Quick</strong> guide to the Commonwealth Procurement Rules<br />
Key changes <strong>and</strong> things to note<br />
• New Name – Commonwealth Procurement Rules.<br />
• Th e CPGs are now rules. Guidance <strong>and</strong> good practice material that was located<br />
in the CPGs will now appear on <strong>Finance</strong>’s procurement website.<br />
• ‘How to use the <strong>CPRs</strong>’ section included for o cials new to procurement<br />
(section 3).<br />
• Value for money has been reworded to clarify that it incorporates other<br />
policies <strong>of</strong> the Commonwealth <strong>and</strong> applies to the entire procurement process<br />
(paragraphs 4.1 to 4.5).<br />
• Clarifi cation <strong>of</strong> the treatment <strong>of</strong> contracts without end dates <strong>and</strong> third party<br />
procurement (paragraphs 4.13 <strong>and</strong> 4.14).<br />
• AusTender 42 day reporting requirements has been clari ed.<br />
Must report within 42 days <strong>of</strong> entering into or amending a contract<br />
(paragraph 7.16). Reporting thresholds have not changed.<br />
• Estimating the value <strong>of</strong> a procurement is now in Division 1 to clarify that it<br />
applies to all procurements (paragraphs 9.2 to 9.6).<br />
• Th e three procurement methods are located in Division 1 <strong>and</strong> are now called:<br />
- Open tender – no change – see paragraph 9.8.<br />
- Prequali ed tender – previously called select tender – see paragraph 9.9.<br />
- Limited tender – previously called direct source – see paragraph 9.11.<br />
• Reporting the original procurement method used to establish a st<strong>and</strong>ing o er<br />
has been clari ed (paragraph 9.10).<br />
• Consistent use <strong>of</strong> terminology<br />
- Must: Rules that must be complied with.<br />
- Should: Indicates good practice.<br />
- Potential supplier: An entity or person who may respond to an<br />
approach to market.<br />
- Tenderer: An entity or person who has responded with a submission<br />
to an approach to market.<br />
- Supplier: An entity or person who has entered into a contract with<br />
the Commonwealth.<br />
• Refer to ‘above or below the relevant procurement threshold’ rather than<br />
use the terms ‘non covered’ <strong>and</strong> ‘covered’ procurements as these terms<br />
were not well understood by non-procurement practitioners.<br />
• New exemption from Division 2 has been added - number 17 - procurement<br />
from a SME with at least 50 percent Indigenous ownership.<br />
• Defi ned terms are italicised throughout the <strong>CPRs</strong>.<br />
<strong>Quick</strong> Tips<br />
• ere have been no major policy changes.<br />
• Procurement <strong>and</strong> reporting thresholds are the same.<br />
• Division 1 includes rules that apply to all procurements.<br />
• Division 2 includes additional rules for procurements at or above the relevant<br />
procurement threshold.<br />
• e names <strong>of</strong> procurement methods have changed for clarity however the<br />
methods remain the same.<br />
- open tender = open tender<br />
- select tender = prequali ed tender<br />
- direct source = limited tender<br />
• Treatment <strong>of</strong> contracts without end dates <strong>and</strong> third party procurement has<br />
been clari ed (paragraphs 4.13 <strong>and</strong> 4.14).<br />
• AusTender 42 day reporting requirements have been clari ed (paragraph 7.16).<br />
Procurement Methods for contracts reported will change from 1 July <strong>2012</strong>.<br />
OpenOpen Tender<br />
SelectPrequali ed Tender<br />
DirectLimited Tender<br />
Email: procurementagencyadvice@finance.gov.au Website: www.finance.gov.au/procurement<br />
Reporting to AusTender<br />
From 1 July <strong>2012</strong>: For old procurement methods reported in agencies’ batch<br />
upload les, AusTender will map to the new methods. For manual entry <strong>of</strong><br />
contract notices on AusTender, only the new procurement methods will appear.<br />
All legacy contract notices on AusTender will be migrated automatically to the<br />
new procurement methods on the evening <strong>of</strong> 30 June <strong>2012</strong>.<br />
By mid July <strong>2012</strong>: For batch upload agencies, AusTender will issue a new version<br />
<strong>of</strong> the AusTender Reporting Export (AREX) Speci cation that will prescribe the<br />
new procurement methods for implementation in agency input systems.<br />
Agencies must upgrade to the new AREX Speci cation no earlier than<br />
1 October <strong>2012</strong> <strong>and</strong> by 30 June 2013. AusTender will manage the translation <strong>of</strong><br />
old procurement methods to new in the intervening period.<br />
e AusTender Team will advise further detail on the transition strategy shortly.<br />
Meantime, any queries can be directed to the AusTender Help Desk<br />
on 1300 651 698 or tenders@ nance.gov.au.
MOVEMENTS - DIVISION 1<br />
2008 CPGs<br />
paragraph<br />
applicable to<br />
30 June <strong>2012</strong><br />
<strong>2012</strong> <strong>CPRs</strong><br />
paragraph<br />
to apply from<br />
1 July <strong>2012</strong><br />
2008 CPGs<br />
paragraph<br />
applicable to<br />
30 June <strong>2012</strong><br />
<strong>2012</strong> <strong>CPRs</strong><br />
paragraph<br />
to apply from<br />
1 July <strong>2012</strong><br />
2008 CPGs<br />
paragraph<br />
applicable to<br />
30 June <strong>2012</strong><br />
<strong>2012</strong> <strong>CPRs</strong><br />
paragraph<br />
to apply from<br />
1 July <strong>2012</strong><br />
2008 CPGs<br />
paragraph<br />
applicable to<br />
30 June <strong>2012</strong><br />
<strong>2012</strong> <strong>CPRs</strong><br />
paragraph<br />
to apply from<br />
1 July <strong>2012</strong><br />
2008 CPGs<br />
paragraph<br />
applicable to<br />
30 June <strong>2012</strong><br />
<strong>2012</strong> <strong>CPRs</strong><br />
paragraph<br />
to apply from<br />
1 July <strong>2012</strong><br />
PURPOSE ENCOURAGING COMPETITION ACCOUNTABILITY AND TRANSPARENCY MANDATORY PROCUREMENT PROCEDURES COOPERATIVE AGENCY PROCUREMENT<br />
1.1 2.1 5.1 5.1 7.1 7.1 8.1 10.2 8.38 4.10<br />
1.2 2.2 5.2 5.3 7.2 7.1 8.2 10.1 8.39 4.11<br />
1.3 2.5 5.3 5.4 7.3 7.2 8.3 2.15 8.40 4.12<br />
1.4 2.14 5.4 5.4 7.4 7.1 PROCUREMENT THRESHOLDS REQUEST DOCUMENTATION<br />
1.5 2.3 5.5 5.4 7.5 7.1 8.4 9.7 8.41 Appendix C<br />
1.6 2.13 5.6 5.5 7.6 7.1 VALUING PROCUREMENT 8.42 10.6<br />
1.7 Appendix C 5.7 5.2 7.7 2.10 8.5 9.2 8.43 10.7<br />
SCOPE 5.8 9.7 7.8 7.2 8.6 9.3 8.44 7.9<br />
2.1 2.2 EFFICIENT, EFFECTIVE & ETHICAL USE OF RESOURCES 7.9 2.2 8.7 - 8.45 10.8<br />
2.2 2.7 6.1 4.4 7.10 7.4 8.8 9.4 8.46 Appendix C<br />
2.3 2.8 6.2 3.1 7.11 7.2 8.9 9.6 8.47 5.3<br />
2.4 2.9 6.3 6.2 7.12 7.3 8.10 9.5 8.48 10.9<br />
2.5 2.4 6.4 6.2 7.13 Guidance APPROACHING THE MARKET 8.49 10.10<br />
2.6 - 6.5 6.3 7.14 Guidance 8.11 Appendix C 8.50 10.11<br />
2.7 2.6 6.6 6.3 7.15 7.7 8.12 Appendix C 8.51 10.12<br />
LEGISLATIVE & POLICY FRAMEWORK 6.7 8.1 7.16 7.8 8.13 - CONDITIONS FOR PARTICIPATION<br />
3.1 2.10 6.8 8.2 7.17 7.9 OPEN TENDERING 8.52 10.13<br />
3.2 2.11 6.9 8.3 7.18 7.11 8.14 9.8 8.53 10.14<br />
3.3 2.12 6.10 4.4 7.19 7.12 MULTI- USE LISTS 8.54 10.15<br />
3.4 2.14 6.11 Guidance 7.20 7.9 8.15 Appendix C 8.55 10.16<br />
3.5 4.8 6.12 Guidance 7.21 7.14 8.16 Guidance MINIMUM TIME LIMITS<br />
3.6 4.9 6.13 Guidance 7.22 7.15 8.17 Guidance 8.56 10.17<br />
3.7 4.9 6.14 Guidance 7.23 7.15 8.18 Guidance 8.57 10.18<br />
3.8 2.15 6.15 Guidance 7.24 7.16 8.19 Guidance 8.58 10.19<br />
3.9 2.5 6.16 Guidance 7.25 7.17 SELECT TENDERING 8.59 10.20<br />
3.10 4.6 6.17 6.5 7.26 7.19 8.20 9.9 8.60 10.21<br />
3.11 4.7 6.18 6.6 7.27 7.24 8.21 5.3 8.61 10.22<br />
3.12 4.14 6.19 6.6 7.28 7.20 8.22 9.9 8.62 10.23<br />
VALUE FOR MONEY 6.20 - 7.29 7.20 8.23 9.9 8.63 10.24<br />
4.1 4.4 6.21 6.7 7.30 7.21 8.24 9.9 8.64 10.25<br />
4.2 4.4 6.22 6.7 7.31 7.22 8.25 9.9 8.65 10.26<br />
4.3 7.10 7.32 7.23 8.26 9.9 8.66 10.27<br />
4.4 4.5 7.33 7.10 8.27 9.9 RECEIPT & OPENING OF SUBMISSIONS<br />
Email: procurementagencyadvice@finance.gov.au Website: www.finance.gov.au/procurement<br />
Commonwealth Procurement Rules - List <strong>of</strong> Movements<br />
MOVEMENTS - DIVISION 2<br />
7.34 6.8 8.28 9.9 8.67 10.28<br />
7.35 Guidance 8.29 9.9 8.68 10.29<br />
DIRECT SOURCING 8.69 10.30<br />
8.30 9.11 AWARDING OF CONTRACTS<br />
8.31 5.3 8.70 10.31<br />
8.32 10.4 8.71 10.32<br />
8.33 10.3 NOTIFICATION OF DECISIONS<br />
8.34 10.5 8.72 7.15<br />
PANELS 8.73 7.15<br />
8.35 Guidance 8.74 7.15<br />
8.36 -<br />
8.37 4.11