CPRs Quick Guide 2012 - Department of Finance and Deregulation

The Commonwealth Procurement Rules
e Commonwealth Procurement Rules (CPRs) represent the Government’s policy
framework under which agencies govern and undertake their own procurement.
e CPRs combine both Australia’s international obligations and good practice.
Together, these enable agencies to design processes that are robust, transparent
and instil con dence in the Australian Government’s procurement activities.
is encourages agencies to design processes that allow for innovative solutions
and that re ect the scale, scope and risk of the procurement.
e CPRs will take e ect from 1 July 2012. ey will replace the Commonwealth
Procurement Guidelines (CPGs) issued in December 2008.
e CPRs apply to Financial Management and Accountability Act 1997 (FMA Act)
agencies and relevant Commonwealth Authorities and Companies Act 1997
(CAC Act) bodies.
e CPRs are available at www. nance.gov.au/procurement.
The Review
e Department of Finance and Deregulation (Finance) has overseen a collaborative
process to develop the CPRs. Finance has engaged with agencies through seminars,
and senior procurement o cials working groups and has distributed dra s to
procurement and Chief Financial O cer areas for comment in collaboratively
redeveloping the CPRs.
e review has:
• Repositioned and streamlined the CPGs from guidelines to a rule set;
• Ensured consistent and clear use of terminology; and
• Rede ned the procurement methods as recommended by the Australian
National Audit O ce (ANAO) audit report No. 11 2010-11 Direct Source
Procurement.
Transition
e CPRs come into e ect on 1 July 2012. e CPGs will be revoked to
coincide with this.
New guidance to complement the CPRs will also be released on 1 July 2012.
To prepare for the CPRs, agencies should consider reviewing and updating:
• Internal documentation (i.e. CEIs and other operational guidance);
• Any procurement templates and other agency speci c requirements; and
• Internal agency procurement training.
For further information regarding the transition to the CPRs contact your central
procurement area.
Quick guide to the Commonwealth Procurement Rules
Key changes and things to note
• New Name – Commonwealth Procurement Rules.
• Th e CPGs are now rules. Guidance and good practice material that was located
in the CPGs will now appear on Finance’s procurement website.
• ‘How to use the CPRs’ section included for o cials new to procurement
(section 3).
• Value for money has been reworded to clarify that it incorporates other
policies of the Commonwealth and applies to the entire procurement process
(paragraphs 4.1 to 4.5).
• Clarifi cation of the treatment of contracts without end dates and third party
procurement (paragraphs 4.13 and 4.14).
• AusTender 42 day reporting requirements has been clari ed.
Must report within 42 days of entering into or amending a contract
(paragraph 7.16). Reporting thresholds have not changed.
• Estimating the value of a procurement is now in Division 1 to clarify that it
applies to all procurements (paragraphs 9.2 to 9.6).
• Th e three procurement methods are located in Division 1 and are now called:
- Open tender – no change – see paragraph 9.8.
- Prequali ed tender – previously called select tender – see paragraph 9.9.
- Limited tender – previously called direct source – see paragraph 9.11.
• Reporting the original procurement method used to establish a standing o er
has been clari ed (paragraph 9.10).
• Consistent use of terminology
- Must: Rules that must be complied with.
- Should: Indicates good practice.
- Potential supplier: An entity or person who may respond to an
approach to market.
- Tenderer: An entity or person who has responded with a submission
to an approach to market.
- Supplier: An entity or person who has entered into a contract with
the Commonwealth.
• Refer to ‘above or below the relevant procurement threshold’ rather than
use the terms ‘non covered’ and ‘covered’ procurements as these terms
were not well understood by non-procurement practitioners.
• New exemption from Division 2 has been added - number 17 - procurement
from a SME with at least 50 percent Indigenous ownership.
• Defi ned terms are italicised throughout the CPRs.
Quick Tips
• ere have been no major policy changes.
• Procurement and reporting thresholds are the same.
• Division 1 includes rules that apply to all procurements.
• Division 2 includes additional rules for procurements at or above the relevant
procurement threshold.
• e names of procurement methods have changed for clarity however the
methods remain the same.
- open tender = open tender
- select tender = prequali ed tender
- direct source = limited tender
• Treatment of contracts without end dates and third party procurement has
been clari ed (paragraphs 4.13 and 4.14).
• AusTender 42 day reporting requirements have been clari ed (paragraph 7.16).
Procurement Methods for contracts reported will change from 1 July 2012.
OpenOpen Tender
SelectPrequali ed Tender
DirectLimited Tender
Email: procurementagencyadvice@finance.gov.au Website: www.finance.gov.au/procurement
Reporting to AusTender
From 1 July 2012: For old procurement methods reported in agencies’ batch
upload les, AusTender will map to the new methods. For manual entry of
contract notices on AusTender, only the new procurement methods will appear.
All legacy contract notices on AusTender will be migrated automatically to the
new procurement methods on the evening of 30 June 2012.
By mid July 2012: For batch upload agencies, AusTender will issue a new version
of the AusTender Reporting Export (AREX) Speci cation that will prescribe the
new procurement methods for implementation in agency input systems.
Agencies must upgrade to the new AREX Speci cation no earlier than
1 October 2012 and by 30 June 2013. AusTender will manage the translation of
old procurement methods to new in the intervening period.
e AusTender Team will advise further detail on the transition strategy shortly.
Meantime, any queries can be directed to the AusTender Help Desk
on 1300 651 698 or tenders@ nance.gov.au.

MOVEMENTS - DIVISION 1
2008 CPGs
paragraph
applicable to
30 June 2012
2012 CPRs
paragraph
to apply from
1 July 2012
2008 CPGs
paragraph
applicable to
30 June 2012
2012 CPRs
paragraph
to apply from
1 July 2012
2008 CPGs
paragraph
applicable to
30 June 2012
2012 CPRs
paragraph
to apply from
1 July 2012
2008 CPGs
paragraph
applicable to
30 June 2012
2012 CPRs
paragraph
to apply from
1 July 2012
2008 CPGs
paragraph
applicable to
30 June 2012
2012 CPRs
paragraph
to apply from
1 July 2012
PURPOSE ENCOURAGING COMPETITION ACCOUNTABILITY AND TRANSPARENCY MANDATORY PROCUREMENT PROCEDURES COOPERATIVE AGENCY PROCUREMENT
1.1 2.1 5.1 5.1 7.1 7.1 8.1 10.2 8.38 4.10
1.2 2.2 5.2 5.3 7.2 7.1 8.2 10.1 8.39 4.11
1.3 2.5 5.3 5.4 7.3 7.2 8.3 2.15 8.40 4.12
1.4 2.14 5.4 5.4 7.4 7.1 PROCUREMENT THRESHOLDS REQUEST DOCUMENTATION
1.5 2.3 5.5 5.4 7.5 7.1 8.4 9.7 8.41 Appendix C
1.6 2.13 5.6 5.5 7.6 7.1 VALUING PROCUREMENT 8.42 10.6
1.7 Appendix C 5.7 5.2 7.7 2.10 8.5 9.2 8.43 10.7
SCOPE 5.8 9.7 7.8 7.2 8.6 9.3 8.44 7.9
2.1 2.2 EFFICIENT, EFFECTIVE & ETHICAL USE OF RESOURCES 7.9 2.2 8.7 - 8.45 10.8
2.2 2.7 6.1 4.4 7.10 7.4 8.8 9.4 8.46 Appendix C
2.3 2.8 6.2 3.1 7.11 7.2 8.9 9.6 8.47 5.3
2.4 2.9 6.3 6.2 7.12 7.3 8.10 9.5 8.48 10.9
2.5 2.4 6.4 6.2 7.13 Guidance APPROACHING THE MARKET 8.49 10.10
2.6 - 6.5 6.3 7.14 Guidance 8.11 Appendix C 8.50 10.11
2.7 2.6 6.6 6.3 7.15 7.7 8.12 Appendix C 8.51 10.12
LEGISLATIVE & POLICY FRAMEWORK 6.7 8.1 7.16 7.8 8.13 - CONDITIONS FOR PARTICIPATION
3.1 2.10 6.8 8.2 7.17 7.9 OPEN TENDERING 8.52 10.13
3.2 2.11 6.9 8.3 7.18 7.11 8.14 9.8 8.53 10.14
3.3 2.12 6.10 4.4 7.19 7.12 MULTI- USE LISTS 8.54 10.15
3.4 2.14 6.11 Guidance 7.20 7.9 8.15 Appendix C 8.55 10.16
3.5 4.8 6.12 Guidance 7.21 7.14 8.16 Guidance MINIMUM TIME LIMITS
3.6 4.9 6.13 Guidance 7.22 7.15 8.17 Guidance 8.56 10.17
3.7 4.9 6.14 Guidance 7.23 7.15 8.18 Guidance 8.57 10.18
3.8 2.15 6.15 Guidance 7.24 7.16 8.19 Guidance 8.58 10.19
3.9 2.5 6.16 Guidance 7.25 7.17 SELECT TENDERING 8.59 10.20
3.10 4.6 6.17 6.5 7.26 7.19 8.20 9.9 8.60 10.21
3.11 4.7 6.18 6.6 7.27 7.24 8.21 5.3 8.61 10.22
3.12 4.14 6.19 6.6 7.28 7.20 8.22 9.9 8.62 10.23
VALUE FOR MONEY 6.20 - 7.29 7.20 8.23 9.9 8.63 10.24
4.1 4.4 6.21 6.7 7.30 7.21 8.24 9.9 8.64 10.25
4.2 4.4 6.22 6.7 7.31 7.22 8.25 9.9 8.65 10.26
4.3 7.10 7.32 7.23 8.26 9.9 8.66 10.27
4.4 4.5 7.33 7.10 8.27 9.9 RECEIPT & OPENING OF SUBMISSIONS
Email: procurementagencyadvice@finance.gov.au Website: www.finance.gov.au/procurement
Commonwealth Procurement Rules - List of Movements
MOVEMENTS - DIVISION 2
7.34 6.8 8.28 9.9 8.67 10.28
7.35 Guidance 8.29 9.9 8.68 10.29
DIRECT SOURCING 8.69 10.30
8.30 9.11 AWARDING OF CONTRACTS
8.31 5.3 8.70 10.31
8.32 10.4 8.71 10.32
8.33 10.3 NOTIFICATION OF DECISIONS
8.34 10.5 8.72 7.15
PANELS 8.73 7.15
8.35 Guidance 8.74 7.15
8.36 -
8.37 4.11