Procurement Policy

Purpose. This policy sets the principles, thresholds, approvals and records the department must apply when buying goods, services and funded community services, consistent with the Victorian Government Purchasing Board policies and the Financial Management Act 1994.

1.Principles

All procurement must achieve value for money, be conducted with accountability and probity, apply proportionate process to the value and risk of the purchase, and support the government's social procurement objectives. Value for money is the best outcome over the life of the purchase, not simply the lowest price.

2.Scope

This policy covers every purchase of goods and services, including consultancies, information technology, facilities and funded service agreements with community providers. Grants are governed by the grant assessment procedure, but any arrangement where the department specifies the service and pays for delivery is a procurement and must follow this policy.

3.Market approach thresholds

The market approach must match the estimated total value of the purchase over its full term including options. Officers must not split a purchase to bring it under a threshold. Where a whole of government or department panel exists for the category, it must be used unless the Manager, Procurement and Contracts approves an exemption in writing.

• Up to $25,000: one written quote and a purchase order
• $25,000 to $150,000: at least three written quotes or a panel request for quote
• $150,000 to $500,000: limited tender from a panel or an open request for quote
• Over $500,000: open tender with an approved procurement plan and probity plan
• Any value: complexity and risk assessment recorded on the procurement request form

4.Approvals and delegations

Every procurement must be approved before the market is approached by an officer holding the financial delegation for the full value, as recorded in the delegations register. The same delegate, or a higher one, must approve the award. The delegate must not be a member of the evaluation panel.

5.Probity and conflicts of interest

Every member of an evaluation panel must sign a conflict of interest declaration before receiving any offer. Communication with tenderers during a live process must go through the nominated contact officer only, and all questions and answers must be shared with every tenderer. Offers must be opened together, recorded and stored securely.

6.Contract management and records

Every contract must be recorded in the contracts register with its value, term, delegate, contract manager and performance measures. Contract managers must review performance at the intervals set in the contract, record variations with delegate approval, and close the contract with a completion report. Procurement records must be kept for at least seven years.

7.Reporting

Contracts over $100,000 must be published on the government contracts website within the required period. The Manager, Procurement and Contracts will report procurement activity, exemptions and complaints to the audit and risk committee each quarter.