Agency A Procurement Process
Business Process Map (future state)
Event
Analysis and Review of Commonwealth
Procurement Processes for procurements
under $80,000
Client
Department of Finance and
Deregulation
Date
Version
13 May 2011
FINAL 1.0
ThinkPlace Team
Linda Dewey
Mark Thompson
AUSTRALIA  NEW ZEALAND
LEVEL 1 UNIT 3 GREEN SQUARE KINGSTON 2604 P +61 6282 8852 F +61 2 6282 8832 WWW.THINKPLACE.COM.AU
Agency A Proposed Procurement Process
About this document
This document contains a business process map for
procurements under $80,000, which specifies the requirements
set out in Agency A’s Chief Executive Instructions (CEIs),
operational guidelines and other internal guidance, as well as
the overarching requirements of the Commonwealth
Procurement Framework.
A current state map was not workshopped since Agency
A has already developed this documentation. Rather, this
document reflects the process as it is proposed to be
conducted in approximately 6 months time
ThinkPlace has worked with a small group of people in Agency
A to develop this document.
Contents
Intent Statement
3
Process analysis
Agency A CEI snapshot – current state
Summary changes to process
Process improvements
4
5
7
8
Business process maps
Role statements
Map Levelling
Level 0 map
Level 1 map
9
10
12
13
14
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
PAGE 2
Agency A Proposed Procurement Process
Intent
A standardised, simple and safe process for all FMA agencies conducting procurements that fall under the $80,000 threshold
SYSTEM IN FOCUS
The FMA Act and Regulations set the framework for the proper
management of public money and public property in the
custody and control of the Commonwealth.
The Commonwealth Procurement
Guidelines (CPGs) articulate the
Government’s expectations for all
department and agencies conducting
procurement.
Agencies have evolved their procurement policies and
practices within the context of the agency’s organisational
structure, delegations, approval processes etc.
Under the FMA Act, 104 FMA agency CEOs
have devolved authority to manage public
money within their agency.
Agency specific policies and procedures are
contained with large and complex volumes of
CEIs, departmental policy documents and
protocols.
CURRENT STATE
APPROACH FOR BRIDGING THE GAP
FUTURE STATE
Where are we now?
 Analysis of ‘2008-09 AUSTENDER statistics indicate 85,000
contracts (over $10,000) were awarded. The total value of
these contracts approx. $35bn.
 Of those contracts, about 65,000 contracts falling under the
$80,000 threshold were awarded. The total value of these
contracts was about $12.6bn.
 Over 80% of the total number of contracts correspond to about
4% total value. An APS 5/6 can spend up to 80% their time on
low value contracts
 Low value contracts translate to a high administrative burden
 Agencies have tailored procurement approaches reflect
organisational structure, authority and delegations, approval
processes, risk appetite, level of IT maturity, and resourcing,
reporting processes and systems
 Procurement functions differ in agencies – some functions are
centralised, some are decentralised
 Participating agencies have undertaken work to review CEIs,
processes and protocols
 Whole of Government CEIs are under development
 Work has also been undertaken to simplify the standard short
form contract, reducing the number of pages from 80 to 6
How do we get there?
Analyse and review Commonwealth procurement practices
currently employed by selected agencies when conducting
procurements under $80,000, identifying issues, pressure points
and opportunities for improvement, and on that basis making
recommendations for simplifying and streamlining processes.
What do we need to do?
What would success look like?
 A better practice model for procurements under the threshold
that:
− Standardises the process across FMA agencies
− Makes it easier for staff to know what to do and how
to conduct procurements
− Reduces administrative burden
 Finance will be able to use the project findings and
recommendations as a basis for presenting a better
practice model to FMA agencies, where appropriate.
 The project will influence agency CEIs and processes
Who do we need to
involve?
 Finance’s
Procurement Policy
Branch
 Procurement Policy
Areas and
representatives from
line areas
What do we need to
consider?
 Avoid overengineering or over
prescribing
 Aim to set a
benchmark
 Impact on
behavioural change
DRIVERS FOR CHANGE
What is the problem/ opportunity?
 Agency procurement processes are complex, confusing,
and onerous for staff
 Requirements vary from agency to agency – processes are
not standardised across government
 Suppliers are frustrated
Focussing question
How can we standardise and streamline the process for
procurements under the $80,000 threshold, making it less onerous
FMA agencies, while also maintaining the integrity of the FMA
Act?
Out of scope
 The project will not to assess how well agencies implement
the CPGs and relevant FMA legislation when undertaking
procurements
 The project will not redesign policy
Timing
April
• Intent, planning
and agency
engagement
• CPG process
modelling
May
• Agency CEI
process mapping
• Case study
development by
agencies
• Case study
analysis
June
• Synthesis
• Design ‘better
practice model’
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
PAGE 3
Process analysis
AUSTRALIA  NEW ZEALAND
LEVEL 1 UNIT 3 GREEN SQUARE KINGSTON 2604 P +61 6282 8852 F +61 2 6282 8832 WWW.THINKPLACE.COM.AU
Agency A Proposed Procurement Process
Agency A snapshot – current state
POLICY STATEMENT

All spending decisions must make efficient, effective and ethical
use of all Commonwealth resources and aim to deliver value for
money.

All spending decisions must be in accordance with the law and not
inconsistent with the policies of the Commonwealth.
PRINCIPLES/ OUTCOMES
 All proposals to spend public money must be approved by an
Approver.
 The Commissioner is responsible for implementing and
maintaining the legal requirements for spending public money in
Agency A.
 The Commissioner has delegated the power to approve spending
proposals to certain officials only.
 Only those officials who have been delegated the power to
approve (Approvers) may approve spending proposals.
 Delegated Approvers are responsible and accountable for the
decisions they make in approving spending proposals..
 Approvers must not approve spending proposals, thereby
committing the Commonwealth to make payments, unless they
know there are funds available to meet that commitment.
 Approvers have to follow the principles, rules and instructions in
Agency A’s CEI and all related CEIs, Corporate Management
Practice Statements (CMPS) and Corporate Management
Procedures and Instructions (CMPI).
 Section 14 of the FMA Act contains a specific penalty for
misapplication or improper disposal, or the improper use, of public
money.
 The benefits of dealing with small and medium enterprises should
be considered when assessing value for money.
 All potential suppliers should be given the same opportunity to
compete for Agency A’s business, be treated equitably and not
discriminated against on the basis of ownership, foreign affiliation,
location or size.
Direct sourcing is only permitted under the Conditions of Direct
Sourcing listed in Division 2 "Mandatory Procurement
Procedures" of the Commonwealth Procurement Guidelines.
Direct sourcing requires approval by either the Chief Finance
Officer, the SES Band 1 Corporate Procurement or an
authorised officer. The authorising officer must have written
authorisation from the Chief Financial Officer or the SES Band
1 of Corporate Procurement.
ROLES & RESPONSIBLITIES
Responsibilities are specified for the following roles:
 Chief Executive Officer
The Chief Executive Officer is responsible for implementing and
maintaining the legal requirements for spending of public money in
Agency A.
 Chief Finance Officer
The Chief Executive Officer has given the Chief Finance Officer
responsibility for managing the financial affairs and reporting
requirements of Agency A.
 Agency A Finance (Financial Framework Team)
Responsible for developing the financial management framework, the
assurance of the financial control environment and the interpretation
and application of financial legislation to Agency A business activities.
 SES Band 1 (Corporate Procurement)
The SES Band 1 (Corporate Procurement) is also Agency A’s Head of
Procurement and is responsible for formulating directions and policies,
and providing probity advice regarding procurement. Corporate
Procurement supports the SES Band 1 and is staffed by personnel
required to meet formal procurement competency standards.
 Consultancy gatekeeper
Assesses proposals for consultancy services against the Department of
Finance and Deregulation guidelines.
 Business line client
Undertakes the client role in the procurement process.
 Approver
Delegated power to approve procurements. FMA Regulation 3 defines
an Approver as a person (including a Minister or the Commissioner of
Taxation) who is authorised to exercise the function of approving
proposals to spend public money.
The power to approve proposals to spend public money comes from
various legislative sources. Approvers are therefore required to identify
and record the particular legislative source of their delegation at all
times when exercising their spending power.
 Corporate Procurement
Corporate Procurement within Agency A Finance area is responsible for
procurement activity and Agency A procurement policies and
procedures. Simple procurement functions are devolved to the business
lines.
Corporate Procurement manages complex procurement (over $30,000
in value) in addition to any Information and Communications
Technology (ICT) goods and services and consultancy services
including individual contractors.
− Procurement officer
Provides advice or direction on all aspects of the procurement
cycle and the interaction of the procurement function with Agency
A project management life cycle.
RULES FOR APPROVERS

A spending approver must not approve a proposal to
spend Agency A money unless they are satisfied that the
proposal:
− will make efficient and effective use of Agency A’s
money
− is in accordance with the policies of the
Commonwealth
− is within their delegation limits and within their own
line unless they have a special delegation for the
whole Agency A, and
− will not have the effect of exceeding Agency A’s
approved budget.

The approver must make their decision free of coercion
and accept full responsibility for the decision they make.

Agency A’s Procurement policy and practice requires
spending approvers to follow all procurement policies,
and, if an item is on a Agency A contract, to use Agency
A’s contracted supplier.

Approvers need to ensure funds are available before
giving their approval to any spending proposal. This
means that:
− for departmental items, the approver must ensure
departmental funds are available from an internal
budget allocation
− for administered items, the approver must ensure
funds are available from a special appropriation for
that purpose
− if the proposal is one to spend special public money,
the approver must ensure it is consistent with the
terms under which the money is held by the
Commonwealth, and
− Approvers must not approve spending from a
special account unless it is for a purpose permitted
by the determination of that special account.
− Approvers are not to exceed the limitations put on
their spending power in the delegation schedules,
and must follow any directions to delegates included
in those schedules.

If approval of a proposal to spend public money is not
given in writing, the approver needs to record the terms
of the approval in a document, or in a suitable electronic
record, as soon as practical after giving the approval.

Approvers need to also ensure that sufficient records,
including complying tax invoices, are kept to allow
Agency A to meet its obligations as a model taxpayer.
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
PAGE 5
Agency A Proposed Procurement Process
Agency A snapshot – current state cont…
CONDITIONS










Agency A employees must not approve expenditure of
public money or engage in procurement activities unless
they have the appropriate delegations or authority.
Delegates must comply with the terms of their financial
delegation and not exceed the limitations put on their
spending power in the delegations schedules.
All complex procurements (those over $30,000, all
consultancies, all ICT and any engagement of an
individual contractor) must be arranged through
Corporate Procurement
Consultancy services require Gatekeeper approval in
writing before an arrangement to engage a consultant is
agreed. Corporate Procurement must be contacted to
gain this approval.
Confirmation of available funds and budget holder
approval must be sought prior to placing an order or
entering into any contract, agreement or arrangement. It
is possible for the budget holder to also be the spending
approver for a particular transaction.
When the goods or services are received, or other
conditions are met, which require the payment to be
made, Agency A must account for that liability in Agency
A’s corporate accounting system.
A Commonwealth credit cardholder who is a delegated
spending approver may use the credit card to purchase
goods and services for business use only.
Adequate documentation providing a record of
procurement action and contract management activities
must be maintained. There must be sufficient
documentation to provide reasons for the procurement, a
record of the approval process and justification of
decisions taken
Payment is made on satisfactory delivery and in
accordance with the contracted terms of trade. It is
Commonwealth policy that agencies use payment terms
‘not exceeding 30 days from the date of receipt of the
specified property and services and a correctly rendered
invoice’. Shorter terms can be negotiated, but should be
in the interests of the Commonwealth.
The estimated value of procurements should include GST
and any extensions, options or other fees or expenses.
PROCESS RULES – workflow
 Regulation 9 states that an approver must not
approve a spending proposal without being satisfied
that the expenditure accords with Commonwealth
policies and is efficient and effective.
 The procurement process includes but is not limited to:
− the identification of need
− committing funds for the requirement
− choosing and planning the appropriate method of
procurement
− using the correct request and contractual
documentation
− the selection of suppliers
− entering into contracts and placing purchase
orders
− ensuring delivery of property1 and services, and
− making payments and managing contractual
aspects for the term of the arrangement
 All spending proposals must be approved by the
Delegate under section 44 of the FMA Act before a
contract is entered into.
 Approval by the Delegate of the proposal must be in
writing, or details must be recorded as soon as
possible after giving the approval.
 Commitments are captured in SAP when recorded
against a Purchase Order.
 Commitments via Credit Card are to be captured using
iCMS (integrated creditor management system) where
ever possible.
 Other small value ad hoc purchases are, for practical
purposes, captured at the payment processing stage.
TOOLS
 Corporate Accounting System (SAP)
 Integrated Creditor Management System
 Spending Delegations Database
 Procedural instructions support Approvers
 Purchase Orders
 delegation schedules
 Spending record
 Agency A procurement database (TOPR)
 AusTender
COMPLEX PROCUREMENT
 All complex procurements must be undertaken through
Corporate Procurement. Corporate Procurement will assist staff
to develop business cases, undertake market research, prepare
documents, perform evaluation and contract negotiation, and
process purchase orders.
 Business Lines will be required to participate in the procurement
process and are responsible for a number of elements within it.
 It is essential that Corporate Procurement be consulted as early
in the process as possible. Time must be factored in for
document preparation, evaluation and negotiation since
mandatory time limits apply, as described in the CPGs.
SIMPLE PROCUREMENT
 A large number of commonly used goods and services can be
ordered through existing arrangements without the need to
conduct a procurement process as outlined above.
 In conducting simple procurement, lines should:
− clearly identify the need
− seek approval from the Delegate for the proposed
expenditure
− ensure that funds are available
− seek offers - the number of quotations to obtain will depend
on risks, type of goods or services and the nature of the
market (at least two should be recorded for requirements of
$5,000 or more)
− select the offer that represents the best value for money
− place the order and record the details on SAP
− ensure that a goods receipt is done on SAP when goods are
received, and
− ensure that invoices are processed correctly within the
agreed terms of trade.
 The Simple Procurement Cell can assist with the procurement
process, including assisting with raising purchase orders.
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
PAGE 6
Agency A Proposed Procurement Process
Summary of proposed changes to process
From
To
Value threshold
Process
Value threshold
Process
$ 0 – 5,000
Paid by credit card
Value threshold
$0 – 10,000
Paid by credit card
$ 5,000 – 30,000
Simple
Run by Business Line with
support from Corporate
Procurement
$10,000 - 80,000
Simple (low value / low risk)
Run by Business Line with
support from Corporate
Procurement
> $ 30,000
Complex
Run by Corporate Procurement
> $80,000
Complex
Run by Corporate Procurement
Engagement of individual
contractor, consultancy
services, ICT
Run by Corporate Procurement
As this is a proposed process, Agency A still need to make the
decision as to where certain types of procurements would fall. This
includes procurements where there are indemnities and liabilities and
things such as licences for online subscriptions which are likely to
have licence agreements.
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
PAGE 7
Agency A Proposed Procurement Process
Proposed Process Improvements
What are the pain points that have been fixed by moving to this
process – and how have we fixed them?
 Agency A thresholds did not previously match CPG thresholds. This has
been fixed by changing our thresholds for simple and complex (i.e.
Simple moved from < $30,000 to < $80,000 and complex moved from >
$30,000 to > $80,000)
 Corporate Procurement staff have been freed up to focus on complex
procurements (i.e. > $80,000)
 Eliminated the need for endorsement from Corporate Procurement – This
responsibility has been devolved to the Business Line, and providing
additional supporting tools and documentation on the intranet to help
Business Lines undertake procurement
 Duplication in regards to reporting (e.g. AusTender) has been
streamlined. This has been achieved by moving to the SAP system
which captures information once
 The process has been simplified and aligned with the requirements of
the FMA Act, Regs and CPGs
 Process is documented and available on the intranet along with tools and
templates to aid Business Lines when undertaking procurement
activities, ensuring a consistent and complete process
What pain points are yet to be fixed? What suggestions would fix these issues?
 Work registers (spreadsheets that record the work of procurement officers) are disparate
‒ Amalgamate work registers
‒ Record in SAP (being looked at as part of Agency A’s Better Practices program)
‒ Implement a better practice program
 Requirement of Finance contracts for contractors to indemnify the Commonwealth – This
almost always results in negotiations
‒ The new Finance < $80K contract could be made more efficient be removing
the indemnity clause and relying on common
‒ Finance documentation focusses on dollars and not risk. A focus on managing
risk will help us to simplify the process
 Short form contract (that addresses the issues of unlimited liability, indemnities etc.)
 Interaction and compliance with other policies
 Multiple and frequent policy updates (e.g. open source software, fair work principles)
 Client training is required with Line Finance Team engagement
 Delegation thresholds and different appetites for risk will always mean people will do things
differently
 We need to clarify when a purchase order will suffice
 CPGs contain mandatory requirements and are not just guidelines
‒ Finance is working to simplify guidance
 Three quotes are still required
‒ The number of quotes can vary from procurement subject to risk, value and/ or
market availability
‒ Should it be quote/s instead?
 Need complete, simple and easy support documentation to help clients through the process
 Templates need to be suited to the level of complexity
 Finance templates may still be too complex for the ‘simple’ process
‒ We need to engage and consult during the development of the Finance
templates
 We need to develop guidance material and templates to support Business Lines in
undertaking their procurements
 At this stage we have not made a decision as to whether the requirement for ICT,
consultancies and individual contractors procurement will have to come through Corporate
Procurement. We will also need to consider other factors such as liabilities and indemnities
and process for procurements which have these elements.
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
PAGE 8
Business process maps
AUSTRALIA  NEW ZEALAND
LEVEL 1 UNIT 3 GREEN SQUARE KINGSTON 2604 P +61 6282 8852 F +61 2 6282 8832 WWW.THINKPLACE.COM.AU
Agency A Proposed Procurement Process
Role statements
Client (Business Line)
What are my obligations under the
Commonwealth Procurement
Framework?
 Be aware of procurement policy and
follow it
 Actively participate in the
procurement process
 Obtain appropriate approvals
What is my role? What are my responsibilities?
 I define the procurement requirement
 I find out about the procurement process and contact
Corporate Procurement if I am unsure or there is no
existing procurement arrangement
 I find out if there is budget available
 I obtain quotes, evaluate responses, select a supplier
and enter into an arrangement
What are my concerns?
 Knowing where to start and what to do can be
confusing
 I can be nervous about the process
 Knowing requirements for timeframes is confusing
 I want to know that there is support for me in the
process
Budget Holder
Approver (Delegate)
What are my obligations under the
Commonwealth Procurement
Framework?
 No specific obligations
What is my role? What are my responsibilities?
 Confirm that budget is available
 Ensure we stay within budget
What are my obligations under the
Commonwealth Procurement
Framework?
 My obligations are set out in the
FMA Act and internal policy
 I must not approve a proposal to spend Agency A
money unless I am satisfied that the proposal:
− will make efficient and effective use of the
Agency A’s money
− is in accordance with the policies of the
Commonwealth
− is within their delegation limits and within their
own line unless they have a special delegation
for the whole Agency A, and
− will not have the effect of exceeding Agency A
approved budget.
 Ensuring that a proper procurement process is
followed
Refer CEI snapshot p. 5 – 6
What are my concerns?
 That we meet the budget
What is my role? What are my responsibilities?
 I need to understand my responsibilities under the
FMA Act s. 44 and under internal policy
 I need to know the powers of my delegation
 Understand procurement – i.e. what they want to buy/
achieve through procurement
What are my concerns?
 A procurement process that is simple to comply with
 That the procurement contract is delivered within
specified timeframes, budget, resources and risk is
managed throughout
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
PAGE 10
Agency A Proposed Procurement Process
Role statements
Procurement Officer
What are my obligations under the
Commonwealth Procurement
Framework?
 No specific obligations for simple
procurements (defined as < $80,000
in this map)
Other (Specialist Advice)
Supplier
What are my obligations under the
Commonwealth Procurement
Framework?
No specific obligations
What are my obligations under the
Commonwealth Procurement
Framework?
No specific obligations
What is my role? What are my responsibilities?
 Complying with internal policies and procedures
 To ensure that policy is followed I must know the
policies
 Educate clients on policies and appropriate timeframes
 Guide clients through the process providing advice
and support when needed
 Ensure appropriate record keeping and reporting is
undertaken
What is my role? What are my responsibilities?
 This role includes the role of Legal, Tax Management
Unit and Finance, or subject matter experts
 Comply with relevant legislation and internal policy
 Provide advice and guidance – subject matter
expertise
 Record info on procurement
What is my role? What are my responsibilities?
 Seek and supply advice and information
 Provide a response to RFQ/ RFO
 Negotiate, agree and sign contract
 I must provide accurate information, comply with the
procurement process and stand by my quote
 If successful I must abide by the terms and conditions
set out in the contract
What are my concerns?
 Changing policies
 Timeframes
 Reporting
 Ensuring correct policies are followed
 Ensuring delegate is fully informed
 Meeting and managing client expectations
What are my concerns?
 That we have all the facts when providing advice on
procurements
What are my concerns?
 The process is complicated and time consuming
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
PAGE 11
Agency A Proposed Procurement Process
Map Levelling
Level 0 – Process phases
This map provides an overview of the entire process end to end,
including the process triggers, process phases, and main
workflows.
Level 0
Level 1 – Process activities
These maps drills down into each of the Level 0 process phases,
detailing the activities that occur.
Level 1
Level 2
Level 2 – Procedural tasks, support products and systems
Level 2 is not generally documented as a map, but rather
references guidelines, operational instructions, instruments and / or
business systems such as databases. These things underpin the
delivery of a process.
Symbols
Trigger
Activity
Document
Decision
Ongoing
Activity
End
Workflow
Database/
Storage
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
Off page
connector
PAGE 12
Agency A Proposed Procurement Process
Level 0 – Process Phases
Client
Identify need
Business Line
Budget Holder
Plan
procurement
 Undertake
approach
Evaluate
responses
and
 Develop
finalise
arrangement
Provide advice
regarding budget
Provide inprinciple approval
Provide approval
Approver
Delegate
Procurement
Officer
Corporate
Procurement
Provide advice
(as req’d)
Provide advice
and support
(as req’d)
Provide advice
and support
(as req’d)
Respond to RFQ
Negotiate
arrangement
Other Roles
Specialist Advice
Supplier
Enter into and
fulfil arrangement
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
PAGE 13
Agency A Proposed Procurement Process
Level 1 –  Identify need
Client
Business Line
Budget Holder
Identify
procurement
need
Considerations
Procurement has been
identified as the method
to obtain the good(s)/
service(s)
Determine if budget is
available
❷
Confirm that budget is
available
Approver
Delegate
Procurement
Officer
Corporate
Procurement
Other Roles
Specialist Advice
Supplier
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
PAGE 14
Agency A Proposed Procurement Process
Level 1 –  Plan procurement
Credit Card
Process

Refer to relevant
business process
Note:
RFQ contains Statement
of Requirement.
Guidance material
available on intranet
< $10,000
Client
Business Line
❶
Is
there an
existing
arrangement
?
No
Create appropriate
procurement file
Procurement
Plan
Electronic
File
Use existing
arrangement
Value of
procurement
?
Provide advice
regarding budget
TRIM File
CPG
7.10
Complex
Procurement
Process

Delegate
Procurement
Officer
Corporate
Procurement
Provide advice
regarding current
arrangements
Procurement plan
contains:
 Market research
 Business Case
 Identified
procurement method
 Conflict of interest
 Risk assessment
 Evaluation
methodology
(criteria/ process)
 Draft statement of
requirement
CPG
6.12
Other Roles
Prepare
RFQ / RFO
❸
Draft RFQ/
RFO
Refer to relevant
business process
Approver
Seek advice and
support
(as req’d)
Seek in principle
approval
> $10,000;
< $80,000
>$80,000
Yes
Budget Holder
Develop procurement
plan
Yes
No
Approve
(in-principle)
?
Provide advice and support
(as req’d)
Note
This includes providing
information on roles and
responsibilities and also
tools and templates
Specialist Advice
Supplier
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
PAGE 15
Agency A Proposed Procurement Process
Level 1 –  Undertake approach
Client
❷
Seek quotes
Business Line
Provide clarification
(as req’d)
❹
Receive quotes
RFQ/ RFO
Budget Holder
AusTender
(as req’d)
Approver
Delegate
Provide clarification
(as req’d)
Procurement
Officer
Corporate
Procurement
AusTender
(as req’d)
Response to
RFQ/ RFO
Other Roles
Specialist Advice
Become aware of
RFQ/ RFO
Seek clarification
(as req’d)
Provide quote
Supplier
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
PAGE 16
Agency A Proposed Procurement Process
Level 1 –  Evaluate responses
No
Client
Business Line
❸
Evaluate responses
and develop
evaluation report
Recommend
supplier
Are
negotiations
req’d?
Yes
Undertake
negotiations
Evaluation
report
Seek delegate
approval
Reg
9, 10
Note
Theses documents
form part of the
evaluation report
Budget Holder
Negotiation
strategy
Receive approval
Negotiation
report
Approve
procurement
Yes
?
Electronic
Reg
TRIM File
File
9, 10
Approver
Delegate
No
Procurement
Officer
Corporate
Procurement
Other Roles
Advice regarding:
 Indemnity
 Capped liabilities
 Company structure
 Comcover
 Intellectual property
Provide advice to
Business Line
(as req’d)
End
Provide advice to
Business Line
(as req’d)
Specialist Advice
Supplier
Undertake
negotiations
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
PAGE 17
❺
Agency A Proposed Procurement Process
Electronic
File
Level 1 –  Develop and finalise arrangement
Client
Business Line
Notify suppliers
of decision
CPG
7.22,
7.23
Draft contract
Send contract
to successful
supplier
Sign
contract
Gazette
outcome of
procurement
Is gazettal
req’d?
CPG
7.17
Short form
contract
SAP will be used to raise purchase orders and
automatically generate reports for AusTender
The Purchase Order on SAP is used as the means to
record the arrangement and facilitate the recording of the
goods receipt and payment of invoice.
SAP
Yes
❹
TRIM File
Raise
purchase
order
Receive
good(s) /
service(s)
Receive
invoice
Confirm accuracy
of good(s) /
service(s) and
invoice
Pay
invoice &
record
CPG
7.10
SAP
No
Budget Holder
Template
Unsuccessful
tenderer
Approver
Delegate
Template:
Successful
tenderer
Procurement
Officer
Corporate
Procurement
Other Roles
Specialist Advice
Supplier
Receive
notification of
decision
Read contract
Sign
contract
Supply
good(s)/
service(s)
Send
invoice
ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
Receive
payment
PAGE 18
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ANALYSIS AND REVIEW OF COMMONWEALTH PROCUREMENT
PROCESSES UNDER $80,000 – AGENCY A PROCUREMENT V1.0
PAGE 19
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