Managing probity – procurement guide
Governance Policy
Complexity and
Capability Policy
Market Analysis
and Review Policy
Market Approach
Policy
Contract
Management and
Disclosure Policy
What is probity?
Probity signifies integrity, fairness and honesty. Government often refers to probity in a general sense to
mean good process demonstrated by transparency of actions, equity, confidentiality and managing conflicts
of interest, whether actual or perceived.
In the procurement sector, probity relates to proper and ethical conduct, and propriety in dealings with the
market. Probity is integral to the goal of achieving value-for-money outcomes.
Why is probity important?
Good probity practice is important for:
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business and community confidence in the integrity of government procurement processes;
encouraging and enabling purchasers and businesses to deal with each other on the basis of mutual
trust and respect; and
improving the defensibility of market engagement processes and procurement outcomes.
When to apply probity
Probity should underpin every aspect of every procurement activity.
How to apply probity
To achieve an ethical and transparent approach, procurement processes must be clear, open, wellunderstood and applied by all parties in the process.
In practice, probity requires:
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acting with integrity and impartiality;
ensuring market equality by applying an appropriate level of competition and contestability relevant to
the procurement activity;
consistent and transparent processes;
secure and confidential market engagement information;
identifying and managing conflicts of interest;
allocating appropriate capability to elements of the procurement process; and
engaging a probity practitioner(s) where the complexity of the procurement warrants independent
process oversight.
Table 1 (overleaf) provides a more detailed look at probity in practice.
Note: For more information, see the Guide to engaging a probity practitioner which accompanies the VGPB’s Market Approach
Policy.
Using this guide
This guide accompanies the Victorian Government Purchasing Board’s (VGPB) new procurement framework. Refer to the policies for
mandatory requirements. For more information, visit the Procurement Victoria website at www.procurement.vic.gov.au
Table 1: Probity in practice
Requirement
Recommended actions
Acting with integrity and
impartiality
Organisations demonstrate integrity by:
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being honest, open and transparent in their dealings
using their powers responsibly
addressing improper conduct
managing any real or apparent conflicts of interest, and
striving to earn and sustain a high level of public trust.
Organisations demonstrate impartiality by:
 making decisions and providing advice based on merit—without bias, caprice,
favouritism or self-interest, and
 acting fairly by objectively considering all relevant facts and fair criteria.
Ensure compliance with government legislation and codes, including:
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Public Administration Act 2004
Freedom of Information Act 1982
Code of Conduct for Victorian Public Sector Employees
State Services Authority (SSA) Ethics Framework
SSA Conflict of Interest Policy Framework
SSA Gifts, Benefits and Hospitality Policy Framework, and
Commonwealth legislation and relevant trade agreements.
Ensuring market equality
 All suppliers (existing and potential) must be provided with the same information
Consistent and transparent
processes
 Apply transparency and fairness throughout the procurement cycle.
 Maintain records throughout the process, providing enough information to
regarding the procurement activity.
enable independent review.
 Ensure any change or variation to process and/or scope does not unfairly
Secure and confidential market
engagement information
preference any bidder and minimises additional costs.
 Set up procurement processes to ensure that information from suppliers, in
particular intellectual property, remains confidential.
Identifying and resolving conflicts  Set up and apply procedures and processes to identify and address actual and
perceived conflicts of interest.
of interest
 Record all action taken to address any actual or perceived conflict of interest.
Allocating appropriate capability  Align procurement processes with capability, ensuring staff and systems match
each element of the procurement process.
to elements of the procurement
process
Engaging a probity practitioner(s)  Ensure that probity practitioner services add value to the capability of the
organisation in conducting the procurement process. (Refer to Guide to engaging
where the complexity of the
a probity practitioner.)
procurement activity warrants
independent process oversight
State of Victoria 2014
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work under that licence, on the condition that you credit the State of Victoria as author. The licence does not
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Managing probity – procurement guide
Last updated 8 August 2012
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