Parliament of WA
Procurement Guidelines
Last updated: November 2012
Table of Contents
1. Introduction ................................................................................................................ 1 Policies and Guidelines .............................................................................................. 1 2. Glossary of Terms ...................................................................................................... 2 3. Procurement and Purchasing Guidelines ................................................................... 5 3.1. Value for Money ................................................................................................. 5 Adopting a Systematic Approach to Procurement ..................................................... 5 Value for Money Considerations ............................................................................... 5 Value for Money Assessment .................................................................................... 6 Effective Contract Management ................................................................................ 6 3.2. Open and Effective Competition ........................................................................ 7 3.3. Common Use Arrangements ............................................................................... 7 Selection of Suppliers from a CUA ........................................................................... 7 Competitive Bids on a CUA ...................................................................................... 7 Purchase of Goods and Services Outside the Scope of a CUA ................................. 8 3.4. Contracting Approvals ........................................................................................ 8 3.5. Integrity, Ethics and Probity ............................................................................... 8 Accountability and Ethics .......................................................................................... 8 Legal and Policy Compliance .................................................................................... 9 Fairness and Equity .................................................................................................... 9 Transparency of Process ............................................................................................ 9 Conflict of Interest ..................................................................................................... 9 Protecting Confidential Information ........................................................................ 10 Gifts or Other Benefits ............................................................................................. 10 Probity Auditing for Tenders ................................................................................... 10 Ethical Standards for Providers to POWA............................................................... 11 3.6. Sustainable Procurement ................................................................................... 11 3.7. Assuring Quality ............................................................................................... 12 3.8 Supplier Complaints and Communication ........................................................ 13 4. Procurement Process ................................................................................................ 14 Table 1: Procurement Process .................................................................................. 14 Table 2: Minimum Purchasing Method Required ................................................... 16 Procurement and Purchasing Processes ................................................................... 16 5. Disposal of Surplus and Obsolete Goods ............................................................. 20 6. Purchase Order Guidelines ...................................................................................... 23 6.1. Purpose of a purchase order .............................................................................. 23 6.2. Exemption from requirement to raise a purchase order for a purchase ............ 23 6.3. Timing for raising a purchase order .................................................................. 24 6.4. Workflow steps associated with a purchase order ............................................ 24 6.5. Tracking of outstanding commitments ............................................................. 25 6.6. Cancelling a purchase order .............................................................................. 25 6.7. Administrative Changes to the Purchase Order system .................................... 25 6.8. Login and password problems in the Purchase Order system .......................... 25 1. Introduction
The Parliament of WA (POWA) adopts guidelines to provide authorised staff with
direction and guidance on all aspects of purchasing and contracting for goods and
services.
These Guidelines are designed to encourage authorised staff to obtain the best value
for money while mindful of the complexities, timeliness and level of risk in meeting
their business units’ purchasing requirements.
Policies and Guidelines
These Guidelines follow the framework of policies set out in the Parliament of WA’s
Procurement Policies document for the procurement of goods and services to ensure
efficient and effective purchasing. These policies are:
 Value for Money;
 Open and Effective Competition;
 Common Use Arrangements;
 Contracting Approvals;
 Integrity, Ethics and Probity;
 Sustainable Procurement;
 Assuring Quality;
 Disposal of Goods;
 Supplier Complaints and Communications.
The Policies and these Guidelines are based on State Supply Commission policies and
guidelines and have been amended to reflect the business practices of POWA.
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2. Glossary of Terms
In the POWA Policies and Guidelines, unless a contrary intention appears:
“Accountable Authority” means the Clerk of the Legislative Council, Clerk of the
Legislative Assembly or the Executive Manager Parliamentary Services.
“Asset Register” means the register of assets worth $5,000 or more maintained by the
Finance Unit.
“Bid” means an offer by one party to enter into a legally binding contract with another
party.
“Bona fide sole source of supply” means a situation where it has been clearly
established that only one supplier can supply the requirement. This can be established
either through a periodic test of the market or consultation with appropriate industry
bodies, manufacturers and other sources of expertise.
“Buyer’s Guide” means the document maintained by the Department of Finance
outlining the rules of access and buying in relation to common use arrangements or
agency-specific panel contracts.
“Common Use Arrangement” or “CUA” means a whole of government standing
offer arrangement, awarded to a single or a panel of suppliers for the provision of
specific goods or services commonly used within Government.
“Contract management” means the process of actively managing the relationship
with a supplier over the term of the contract to ensure that both parties meet their
obligations and that value for money is achieved through satisfactory completion of
the contract.
“Contract management plan” means a plan containing all the pertinent information
about how the contract is to be managed and which identifies and addresses all
relevant issues through the life of the contract. This includes monitoring compliance
with contract conditions, identification of milestones and key deliverables/outcomes,
roles and responsibilities of participants, effective financial management and
monitoring, monitoring of risks, project performance reporting requirements and
transitional arrangements.
“Direct purchasing” means the procurement of goods and/or services by placing an
order with the supplier of choice, without seeking other bids.
“Due diligence investigation” means the formal stage during contract negotiation
during which both parties have an opportunity to confirm their expectations and
understanding. For the POWA, this involves independent verification of the preferred
tenderer’s claims relative to their ability to fulfill the contract.
“Expression of Interest” or “EOI” means the process of inviting suppliers to indicate
their interest in submitting an offer to provide goods or services.
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“General Conditions of Contract for the Supply of Goods and/or Services” means
the standardised general conditions of contract for the supply of goods and/or services
approved by the State Supply Commission and adopted by the POWA that apply
universally to different types of contracts.
“Integrity, ethics and probity” refers to uprightness, honesty, proper and ethical
conduct and propriety in dealings. This involves procedures, ethical behaviour,
consistency with the POWA policies and legislation and transparent decision-making
which is fair and can be justified.
“Local Supplier” means a business operating in Western Australia or which employs
Western Australian workers.
“Manager” means the administrative manager for procurement purposes for each of
the Department’s costs centres.
“Portable Public Property” is an item of public property that cost less than $5,000
and more than $500 (or is a mobile telephone or handheld computer costing less than
$500) that is portable (can be readily moved from place to place). These goods are
listed on the Public Property Register.
“POWA” means Parliament of Western Australia.
“Preferred Supplier” means a standing offer arrangement, awarded to a single or a
panel of suppliers by the Accountable Authority for the provision of specific goods or
services commonly used within the POWA.
“Preferred Tenderer” means the tenderer whose offer is selected by the evaluation
panel as representing best value for money and is recommended to be awarded the
contract, subject to ratification by the approving authority and/or the outcome of
successful negotiations and due diligence.
“Probity Auditor” means an individual or organisation engaged to independently
observe and review complex, high cost, politically sensitive or high-risk
procurements. The auditor’s role is simply to audit for compliance with processes and
policy and is not to validate the evaluation panel’s decision.
“Procurement” means the entire process for obtaining all class of resources (human,
material, facilities and services). It can include planning, design, standards
determination, specification writing, preparation of quotation and tender
documentation, selection of suppliers, financing, contract administration, disposals
and other related functions.
“PSD” means Parliamentary Services Department.
“Public Property Register” means the register of Portable Public Property worth
less than $5,000 maintained by the Finance Unit.
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“Request” means the documentation utilised for Requests for Tenders, Requests for
Proposals or Expressions of Interest.
“Requests for proposal” means the process of publicly inviting offers to supply
goods or provide services when the requirement is well-defined in terms of desired
outcomes, but the process by which this is achieved is not predetermined and
suppliers are encouraged to present flexible and innovative market-based solutions.
“Request for public tender” means the process of publicly inviting offers to supply
goods or provide services involving specifications and detailed documentation.
“Risk management” means applying the principles and policies adopted by the
POWA regarding risk management to the tasks of identifying, analysing, evaluating,
treating and monitoring risk.
“Small supplier” means a business that employs less than 20 people.
“Specifications” means a detailed description of the POWA procurement requirement
with which the supplier is required to comply.
“State Supply Commission” means the authorised body established under the State
Supply Commission Act 1991.
“Sufficient quotations” means an adequate number of bids to the extent that is
possible from bona fide sources of supply so as to ensure open and effective
competition. To demonstrate competition, the number of suppliers requested should
range from two to five.
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3. Procurement and Purchasing Guidelines
3.1. Value for Money
Guidelines
Value for money is the basis for comparing conforming bids so that the optimal
offer can be selected. Quality standards and service benchmarks are more
important than obtaining the lowest price, when considering value for money.
An assessment of the best value for money outcome for any procurement should
take into account all relevant whole-of-life costs and benefits, appropriate risk
management strategies and consideration of the implications for sustainability. In
this context, the value for money principle embraces:
 cost-related factors;
 non-cost factors; and
 wider benefits and contributions.
Consideration and assessment of non-cost factors and wider benefits is
increasingly important as contract value increases and the impacts on local
industry become more significant. At low levels of purchasing where there are
many local suppliers and competition is strong, minimising the transaction costs to
both buyers and suppliers is an important value for money consideration.
Adopting a Systematic Approach to Procurement
All factors (including need, costs and benefits) relevant to the procurement need to
be considered and the relative importance of each factor determined on a case-bycase basis. As far as possible, all costs and benefits should be identified and
compared on a common basis over time.
If necessary, a written statement of justification should support the procurement
decision. For example, any value for money considerations resulting in the lowest
quote not being accepted, must be documented.
Value for Money Considerations
Appropriate evaluation criteria should be set to meet the procurement need. The
most significant of these include:
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
whole of life cycle costs (for goods) and whole of contract life costs (for
services), including transaction costs associated with acquisition, delivery,
distribution, holding, consumables, maintenance and disposal;

technical merits of the goods or services being offered in terms of compliance
with specifications, contractual terms and conditions and any relevant methods
of assuring quality;

competency of the prospective suppliers in terms of managerial and technical
capabilities and compliance history;

financial viability and capacity to supply without risk of default; and

other risk factors that may impact on life-cycle costs and value.
Consideration should also be given to any wider benefits to the POWA, including
advantages and benefits of dealing with local and small suppliers, including
suppliers in regional Western Australia. This may include packaging purchases in
contracts of size and scope consistent with the supply capacity of local and
regional businesses.
The list of value for money considerations detailed above is not intended to be
exhaustive and not every element may be relevant in all circumstances.
Value for Money Assessment
Value for Money assessment involves the comparison and evaluation of suitable
conforming offers. Factors to be considered in making this decision include the
following:

value for money is not based on price alone, although the lowest total priced,
conforming offer can be used as an initial benchmark for comparing value for
money. Where a higher priced conforming offer is recommended, there should
be clear and demonstrable benefits over and above the lowest total priced,
conforming offer. The benefits or reasons must be documented;

all offers should be evaluated in a consistent manner against the evaluation
criteria for the procurement. The use of a weighted matrix analysis is a
recommended method for analysing and comparing bids in a detailed and
consistent manner, particularly for high value purchases; and

a due diligence investigation of the preferred or short-listed bidders should be
undertaken for all high value or complex purchases to ensure that, amongst
other things, bidders have the financial stability and technical capacity to
comply with the requirements of the contract.
Effective Contract Management
Value for money assessment should be applied to the ongoing contract
management over the life of the procurement.
The POWA should ensure that:
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
it endeavours to maintain harmonious and co-operative relationships with
suppliers;

ongoing and effective contract management is undertaken to monitor contract
performance against agreed performance measures and indicators; and

supply arrangements and supplier performance should be periodically
reviewed to ensure that they are continuing to provide value for money.
3.2. Open and Effective Competition
The procurement process set out in section four of these Guidelines is designed to
ensure that the appropriate level of open and effective competition is used depending
on the level of value of the goods or services being purchased.
3.3. Common Use Arrangements
Guidelines
POWA staff should always check for a CUA and its associated Buyer’s Guide to
determine value for money in the procurement process. The existence of a CUA does
not prevent purchasing officers from obtaining quotes for goods and services from
other suppliers. Advice can be sought from the Procurement Officer, Finance Unit,
PSD.
Selection of Suppliers from a CUA
The use of a CUA still requires that the procurement process is followed. Full quotes
may not be needed if expressly stated in the relevant Buyer’s Guide.
Competitive Bids on a CUA
Buyers’ Guides exist for all CUAs and can be found in the Government Contract
Directory link on POWAnet>PSD>Finance>Procurement.
The Buyers’ Guides may specify a requirement for competitive bids to be sought.
Even where the Buyers Guide does not specify such a requirement, competitive bids
from suppliers are recommended for higher value procurements, where pricing
variations exist or where the procurement requirements are not precisely met by the
listed offers on the CUA. In these circumstances, the number of suppliers invited to
bid should be based on the:

nature, value and urgency of the purchase;

effort and cost to evaluate several offers is justifiable for both buyers and
suppliers and will achieve a more cost-efficient outcome;

degree of specialisation of the goods and/or services required;

duration of the proposed supply arrangements; and

need to ensure fairness and equity by providing the CUA panel suppliers with
the opportunity to compete for purchase orders throughout the lifecycle of the
CUA.
Bids from all suppliers should be considered when the value of the purchase is such
that suppliers would be significantly disadvantaged if all are not given an opportunity
to compete. Similarly, if the purchase proposed is for the supply of goods or services
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as an ongoing or long-standing arrangement, consideration should be given to inviting
all suppliers to bid.
Purchase of Goods and Services Outside the Scope of a CUA
Goods and services required under a procurement specification that are outside the
scope of a CUA cannot be purchased using a CUA. A CUA supplier can still be used
as a supplier for goods and services by applying normal POWA Procurement Policy
and Guidelines.
3.4. Contracting Approvals
Guidelines
While formal procurement and contract management plans are only required for
specified high value, high risk or complex procurements, they may be utilised for
other purchases.
These plans may be undertaken by PSD in conjunction with the Department of
Finance.
3.5. Integrity, Ethics and Probity
Guidelines
The prime objective must be to achieve an equitable and justifiable procurement
outcome, rather than simply an unblemished process.
The general principles of good practice in integrity, ethics and probity should be
applied to all transactions, regardless of value.
Accountability and Ethics
Departmental staff are accountable for their actions and may be required to give a reasoned
ethical justification for their decisions and actions.
The Accountable Authority will ensure this policy is promoted by:
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
providing access to training regarding procurement and contract management
ethics;

disseminating information regarding the required ethical and probity
standards; and

ensuring that compliance with those standards is monitored and maintained,
including the taking of remedial action where necessary.
Legal and Policy Compliance
POWA procurement should be undertaken in a manner that is consistent with relevant
statutory requirements.
Fairness and Equity
All bidding processes should be conducted fairly with well-established procedures to ensure
equal opportunity for all potential bidders. This should include:

systematic evaluation of all bids against explicit, predetermined evaluation
criteria which are clearly specified and each bidder should be asked to respond
to the same requirements and criteria;

avoidance of ambiguity in procurement documentation and, if discovered,
should not be perpetuated to the advantage of one tenderer;

non-requested “value-added benefits” included in bid submissions should be
excluded from any selection decision;

late bids should be excluded unless the bidder provides explicit and conclusive
evidence of mishandling by the POWA;

any extensions to the time period for bid responses should be applied
consistently to all potential bidders; and

renewal of contracts should be conducted on a competitive basis, except where
otherwise authorised by the Accountable Authority.
Transparency of Process
Suppliers must have assurance that they are being treated ethically and consistently and that
the POWA does not unfairly favour one supplier. In particular, it is important that:

effective documentation control and record-keeping of evaluation
deliberations and decisions against selection criteria must be maintained at all
times;

negotiations with tenderers must not be used as an opportunity to trade off
different tenderers’ prices against others in an attempt to seek lower prices;
and

independent members may be included on evaluation panels for larger,
complex or sensitive projects.
Conflict of Interest
A conflict of interest includes any circumstance where an individual’s relationship
with a supplier or service provider acts against the interests of the POWA or to the
personal benefit of the individual. It arises where there is a reasonable expectation of
direct or indirect benefit or loss for an individual employee with a particular personal
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interest that could be influenced in favour of their interests, in the performance of
their duties. The benefit or loss may be financial or non-financial.
Conflicts of interest are not necessarily unethical unless their occurrence is hidden or
not managed. However, where a conflict of interest arises, it should be declared,
assessed and managed in favour of the public interest.
Protecting Confidential Information
The POWA must ensure that staff are aware of the requirement to not disclose
confidential information and to properly manage the information they receive as part
of a procurement process.
Gifts or Other Benefits
Consistent with Parliament’s Code of Conduct:
No POWA staff should accept, individually or on behalf of any other person, any
article of monetary value or other benefit in exchange for any act or omission in the
performance of that employee’s procurement functions.



POWA staff should indicate to prospective gift bearers that gifts cannot be
accepted from those with whom the POWA has, or potentially has,
commercial dealings. Wherever possible, POWA staff should avoid accepting
gifts.
Immediately report to the Accountable Authority any gifts received.
Immediately report to the Accountable Authority any circumstances where an
offer of a benefit or gift is made, regardless of whether it is accepted, if you
think that such circumstances involve an attempt to induce favoured treatment.
Probity Auditing for Tenders
The Accountable Authority must consider the engagement of an independent probity
auditor for procurements valued at $5 million and above. Consideration of engaging a
probity auditor should also be given to all complex, high risk or sensitive
procurements.
The engagement of a probity auditor is to provide a level of independent assurance
that a tender process has been undertaken with due regard to legislative obligations,
codes of ethics and conduct and POWA policies.
It may also be advisable for all procurements exceeding the public tender threshold to
be subject to a due diligence or probity check by a suitably experienced person, who
is independent of the evaluation process, prior to contract award.
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Ethical Standards for Providers to POWA
While these Guidelines focus on POWA staff involved in procurement, it is essential
that suppliers be advised in the tender documentation of ethical standards and
requirements when tendering for or engaging in contracts.
In particular, the ethical standards that suppliers are expected to abide by include:

abstaining from any collusive practices with any other bidder, contractor or
POWA staff;

ensuring all dealings with the POWA can withstand public scrutiny on the
grounds of fairness and equity; and

ensuring that all communication regarding a bid or tender is undertaken in a
transparent manner.
3.6. Sustainable Procurement
Guidelines
When determining value for money, the following environmental impact issues may
be considered:









use of recycled or recovered materials;
product re-usability;
whether the product is recyclable;
durability;
energy efficiency and consumption;
water efficiency;
waste prevention;
end of life disposal method; and
environmental health issues.
The POWA may identify and address environmental impact issues in procurement
and disposal plans.
The level of effort expended to minimise the environmental impact of procurement
should be commensurate with the nature of the purchase and should be applied in the
procurement process.
The POWA may minimise environmental impact by considering the following during
the procurement process:

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options for quotation and tender design, including selection criteria, that
provide positive advantage to goods, services and/or processes that minimise
environmental impact;

specifications that give consideration to environmental standards, codes or
legislation where appropriate;

seeking information from suppliers on the environmental impact of goods,
services and processes tendered (e.g. accreditation, practices, recycled content,
durability and re-use options, hazardous material content, energy efficiency,
waste prevention, water efficiency);

options for end of life disposal of product and/or packaging;

applying due diligence to the preferred tenderer, including external
verification of claims made regarding environmental impact. The level of
effort expended should be commensurate with achieving value for money;

addressing environmental impact issues in all purchasing and disposal tender
recommendation reports; and

monitoring contract performance against agreed environmental impact
commitments.
3.7. Assuring Quality
Guidelines
QualityRequirements
Internationally recognised quality management systems (Quality Endorsed
Companies) and other quality management systems or standards for assuring quality
are designed to ensure that suppliers clearly understand their customer’s requirements
and deliver goods or services that meet exactly the goods or services specification in
the Request documentation.
Quality is not a synonym for excellence; a quality product is one best suited to the
intended purpose rather than the best that money can buy.
Where goods or services are required to meet a specific level of quality, the quality
level or standard should be clearly defined in the specification in the request
documentation. For example a technical specification or an Australian Standard may
establish the standard of a particular product. Ensuring that the supplier will
understand the requirement and deliver the correct goods or services on time and to
the correct location can be assured by nominating an appropriate method of assuring
quality.
Quality requirements can be:

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requiring suppliers to demonstrate that they have certified quality management
systems in place. These systems can be internationally recognised quality
management systems (Quality Endorsed Companies) or specific industry
developed quality management systems or standards for assuring quality of
product or service delivery;

specific regulations;

specific professional or trade qualifications; and

the required development of project-specific quality plans.
It is the POWA’s responsibility to specify the method(s) of assuring quality
appropriate to the goods and services being purchased. It is the outcome from assuring
quality that is important. Over-specification of the quality requirement will not
necessarily lead to better outcomes. In determining an appropriate method of assuring
quality the POWA should take into account the value of the procurement and the level
of risk arising from the possibility of the goods and services not conforming to the
specified requirements.
Internationally recognised quality management systems should be considered for
high-risk purchases. Industry developed systems for assuring quality may also be
considered. For low risk purchases the method of assuring quality can be as simple as
inspection upon delivery to confirm compliance with the requirements on the
purchase order or contract.
3.8 Supplier Complaints and Communication
Guidelines
EffectiveCommunication
The POWA should recognise the importance of communication with suppliers at all
stages of the procurement process and ensure that:
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
suppliers are provided with the contact details of appropriately experienced
officers for quotation and tender enquiries;

enquiries from bidders are responded to in a timely manner; and

suppliers are provided with feedback on unsuccessful offers to improve
competitiveness.
4. Procurement Process
Following is a table setting out the procurement process and relevant documentation required at each stage:
Table 1: Procurement Process
Stage Action
Process
1. Goods or services required
Clearly define and document the procurement requirement, developing a procurement plan for high value
or complex purchases.
2. Identify who has authority to approve
purchase
Approved incurring officers have authority to procure goods or services to the applicable value limit for a
specified Department and cost centre(s). Contact the Finance Unit to determine authorised purchasing
delegations.
3. Obtain quotes or follow the applicable public
tender, request for proposal or EOI process
See table 2 below for the procurement action required.
4. Evaluate quotes
See policies and relevant sections in this manual eg: ‘Value for Money’ and ‘Sustainable Procurement.’
Check if there is a relevant CUA and liaise with the procurement officer (Finance Unit, PSD).
If lowest quote is not being recommended, include justification in request for approval.
5. Obtain approval
Formal evaluation assessments and recommendations must be approved by the Accountable Authority.
Approval of other purchases will be indicated using the online purchase order system.
6. Order goods or services
Where goods and/or services are not purchased with a credit card, evidence in writing or a purchase order
is required in support of the requested goods and/or service (see Purchase Order Guidelines section).
7. Payment
In circumstances where payment is required at point of order, corporate credit card should be used where
possible.
Where an invoice is issued, it must be forwarded to the Finance Unit for payment in accordance with stages
8-10 below or paid using corporate credit card.
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Stage Action
8. Receive goods or services
Process
Check against order details
Stamp invoice with ‘All goods/services have been received/performed satisfactorily and were incurred for
business purposes’ and approve for payment by signing and dating.
9. Invoice approval
Fill out ‘Invoice Approval Form’.
Attach all procurement documentation, eg: invoice, purchase approval, quotes and justification.
Forward to Incurring Officer for incurring.
Incurring Officer forwards to Certifying Officer for certifying.
Certifying Officer forwards to Finance Unit for payment and filing in accordance with relevant Retention
and Disposal Schedule.
10. Asset and Public Property Registers
Where a purchase is for an Asset or Portable Public Property item, the incurring officer must indicate this
fact on the invoice approval form and complete the online ‘Asset Addition and Move Form’ found on
POWAnet >PSD>Finance>Forms to advise the Finance Unit of the details for inclusion in the asset or
public property register.
11. Disposal of Surplus or Obsolete Goods
PSD (Finance Unit) must be consulted for advice on disposal of goods.
Contact the Senior Accountant regarding whether the item is listed on the Asset or Public Property
Registers and for further advice prior to the disposal of goods.
Complete an Asset Disposal Form.
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Procurement Method
The following table sets out the minimum requirements for the procurement method that
the Parliament of WA must use for the procurement of goods or services when not
purchasing from a common use arrangement.
Table 2: Minimum Purchasing Method Required
Monetary Threshold
Minimum Purchasing Method Required
Up to $5,000
Direct purchase
$5,001 - $20,000
Request sufficient verbal quotations
$20,001 - $150,000
Issue Written Request for Quotation Document
above $150,000
Open tender through a public advertisement
The Building Services Unit in PSD may engage consultants using the DHW Small Value
Consultants Panel Contract, applying the value thresholds and procurement methods
described in the user manual for this contract.
Approval of the Accountable Authority is required to vary the above thresholds or
purchase methods.
Procurement and Purchasing Processes
This section provides further description of the processes summarised in Table 1.
Stage1: Goodsorservicesrequired
Clearly define the goods or services required, developing a formal procurement plan
where applicable. Assistance should be sought from the Finance Unit for all procurement
valued over $20,000.
Stage2: Determinewhohasauthoritytoapprovepurchase
Approved incurring officers have authority to procure goods or services to the applicable
value limit for a specified Department and cost centre(s). Contact the Finance Unit to
determine authorised purchasing delegations. For purchases >$20,000, confirm approval
to proceed from the authorised person.
Stage3: Obtainquotesorfollowtheapplicablepublictender,requestforproposalor
EOIprocess
Obtain quotes in accordance with Table 2 above. Details of verbal quotes are to be
recorded in writing and are to contain sufficient detail to enable a fair comparison with
A373839
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other quotes, eg. name of supplier, name and model number of good or description of
service to be procured and prices.1
Determine whether there is a relevant Common Use Arrangement (CUA) and obtain quotations
from CUA suppliers in accordance with the Buyers Guide where applicable. If a purchase
covered by a CUA is to be made from an alternative supplier, justification for this decision must
be documented.
Recurring small value purchases and standing contracts
Purchases where the whole contract value is below $5,000 may be made by direct purchase.
Repeat purchases of low value orders from a single supplier are acceptable; however where
the overall purchase value over a period of time is expected to or becomes significant, a
formal standing contract arrangement should be established using the appropriate
procurement process. Where a standing contract is not in place, the purchasing officer is still
responsible for justifying value for money for each individual ‘direct purchase’ occasion.
This may be achieved by regular market research of alternative suppliers.
Written Request for Quotations ($20,001 - $150,000)
A written ‘Request for Quotation’ document must be prepared, including appropriate
specifications, selection criteria and reference to relevant supply policies. This document
will form part of the final contract. Staff should seek assistance from the Finance Unit in
preparing this documentation. For complex purchases, the assistance of the Office of
Government Procurement, Department of Finance should be sought.
Sufficient Quotations
In determining what constitutes a sufficient number of quotations, regard should be given to:




the nature and value of the procurement;
the level of cost and effort involved to the buyer and potential suppliers;
the number of potential suppliers; and
how recently the market has been tested.
Calling of Public Tenders ($150,000 and above)
The Accountable Authority must approve the calling of any tender which will usually be
facilitated by PSD in conjunction with the Department of Finance.
Exemptions
Any exemption from seeking competitive quotations or the public tender process may only
be granted in writing by the Accountable Authority, after demonstration that one or more of
the following factors are evident:

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a bona fide sole source of supply exists where the market is tested periodically;
a Parliamentary Department has sourced a similar requirement, or has direct
knowledge of a similar market testing within Government, in the previous 6
A ‘Request for Quote’ form can be used and is available on the POWAnet under: Parliamentary
Services>Finance>Procurement.
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months and it can be reasonably concluded and documented that the market has
not substantially changed;
the POWA requires the use of goods and services from a particular supplier that
must be integrated within a standard operating environment or contractual
arrangement and an alternative product is not suitable; or
an emergency situation exists.
Appropriate records must be maintained documenting the reasons for granting the exemption.
Avoiding Bias in Quotation Specifications
The POWA must deal with all potential suppliers fairly and equally by avoiding bias in any
verbal or written specifications and providing adequate and consistent information to all
bidders.
Communication with Unsuccessful Bidders
Following the awarding of a contract, the POWA or its representative will provide all bidders
with the name of the successful bidder, the total contract value, the contract period and the
make or model of goods or description of services. Unsuccessful bidders will also be
provided with an opportunity for a debriefing on request and provided with feedback against
the selection criteria.
Contract Expiry Date
All quotation and public tender requests must have a contract expiry date and the total
contract term, inclusive of all contract extension options, shall not exceed five (5) years.
General Conditions of Contract for the Supply of Goods and/or Services
The Department of Finance has adopted the General Conditions of Contract for the Supply of
Goods and/or Services that may be referenced in contract documentation where appropriate.
This document is available from the Government Procurement page of the Department of
Finance website.
Advertising Tenders
All requests for public tenders must be advertised in the appropriate section of a newspaper
with state-wide circulation and may be advertised on the applicable WA Government online
tendering website. The tender advertising period should be for a minimum period of ten (10)
working days. For urgent requirements the Accountable Authority may reduce this period as
necessary.
Lodgement of Tender Bids
All bids must be lodged in a secure tender box at the nominated location.
Public tenders should be called with tender documentation that includes appropriate
specifications, selection criteria, evaluation methodologies, reference to appropriate supply
policies and the special conditions of contract relevant to the procurement being sought:
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after the preferred tenderer has been selected and a due diligence process undertaken,
the evaluation panel should prepare a recommendation report for endorsement by the
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Accountable Authority. The report should document key details of the evaluation
process and outcomes, including the method of evaluation, a comparison of costs and
the rationale for the selection made;
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if appropriate, pre-tender briefings may be provided to all interested parties for a
major purchase of goods or services where the requirement is considered complex,
unusual or sensitive. All potential tenderers should be invited to attend a common
pre-tender briefing session and the same information supplied to all; and
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invited tenders should only be called where pre-qualification of suppliers has
occurred. Pre-qualification should involve public advertising of an Expression of
Interest (EOI) and a termination date for the pre-qualification, after which a new EOI
shall be publicly advertised.
Request for public tender documentation should be issued in the standardised form and made
available to all suppliers requesting them.
Stage4: Evaluatequotes
Verbal quotations ($5,001 to $20,000)
Where the lowest price quotation is assessed to give the best value for money, no further
documentation is required. Where it is proposed to accept another bid, the value for
money justification must be documented.
Written requests for quotations ($20,001 to $150,000) and Public Tenders (>$150,000)
A formal evaluation report and recommendation must be prepared, documenting the
details of the procurement actions taken, the value for money assessment and the
justification for the recommended preferred supplier. For higher value or complex
purchases an evaluation panel should be used involving two or more staff with interest in
the contract and/or appropriate skills and knowledge in procurement processes.
Stage5: Obtainapproval
Approval for purchases where a written Request for Quotation or Tender process has
been used (i.e. purchase $20,000 or more) will be recorded on the Evaluation and
recommendation document. The Accountable Authority must approve purchases over
$49,000. For direct purchase or verbal quotation processes for which a purchase order is
raised, the approval will be documented in the online environment.
Stage6: Ordergoodsorservices
A purchase order must be raised in the online Purchase Order system to document the
contract and the financial commitment of the Department. For explanation of situations
in which a Purchase Order is not required, refer to the Purchase Order guidelines section.
Stage7: Payment
In circumstances where payment is required at point of order, a corporate credit card
must be used wherever possible. In most other cases the invoice will be processed by the
Finance Unit and must be forwarded following stages 8 to 9 below.
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Stages8,9and10: Processandresponsibilityforreceivinggoodsandservices,
invoiceprocessing,relatedapprovalsanddocuments
When the goods or services are received the process is as follows:
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stamp invoice with ‘All goods/services have been received/performed
satisfactorily and were incurred for business purposes’ and approve for payment
by signing and dating;
complete an Invoice Approval Form and attach the invoice/s, purchase order,
relevant quotes, justifications and approvals. For complex procurement processes,
the file number of the location of procurement documentation should be recorded
on the invoice approval form;
complete online Asset addition form for purchase of an asset or Portable Public
Property item;
ensure the Invoice Approval Form is incurred and certified and forward to the
Finance Unit for payment; and
the Finance Unit will then ensure the payment has been appropriately authorised
and all documentation is in place, prior to processing the invoice for payment.
Alternative payment options
Reimbursement of ‘out of pocket’ expenses
Where a staff member has paid for goods or services for authorised business
purposes, reimbursement can be claimed via:
 Petty Cash reimbursement (if below the petty cash threshold).
 Through Payroll (complete ‘other expenses’ section of Motor Vehicle Allowance
claim form available under PSD/HR/Internal HR Forms on POWAnet).
 Through Finance (complete Employee Reimbursement form available under
PSD>Finance>Forms on POWAnet).
Corporate Credit Card Purchases
After completing the procurement process, a Corporate Credit Card may be used to effect
payment. Upon receipt of the monthly credit card transaction summary, the credit card
holder must attach all relevant procurement documentation to support the acquittal.
5.
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Disposal of Surplus and Obsolete Goods
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Guidelines
Selecting the appropriate method to dispose of surplus or obsolete goods is an important
component of managing responsibility for procurement activity.
DecisiontoDisposeofGoods
There are a number of reasons why it is appropriate to dispose of surplus goods. These
include:
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lack of need or future use for the goods;
obsolescence due to changes to procedures, functions or usage patterns;
lack of compliance with occupational health and safety standards; and
goods have reached their optimum selling time to maximise returns.
MethodofDisposal
PSD can assist in the disposal of surplus goods. The Procurement Officer, Finance Unit, PSD
should be notified prior to the disposal of goods listed on the Asset or Public Property Registers.
EvaluationofDisposalOptions
The primary aim of disposing of surplus goods is to achieve the best net return for the
POWA. It is therefore important that the POWA consider all disposal options before
deciding which is the most appropriate.
In making this decision, the POWA should consider the following:
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the recycling or “trading in” of goods where practical, expedient or cost effective.
Prior to disposing of goods by trade-in, the value of the goods should be
determined. If difficulty is experienced with the valuation of an item assistance is
available from the State Supply Commission or the Valuer General;
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offering surplus goods to public authorities where appropriate. The WA
Government contracting website may be used to advertise the availability of
significant surplus goods; and
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goods should only be dumped where they have no further use, no resale value or
where offering them for sale is uneconomic.
AccountabilityforDisposal
The POWA should document all decisions and reasons for a disposal of goods. All
disposals of Assets or Portable Public Property must be authorised by the Accountable
Authority by completion of an Asset Disposal Form which is available on POWAnet
>PSD>Finance>Forms.
LiabilityIssuesRegardingDisposalofGoods
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The POWA should not offer any warranty as to the quality or condition of goods offered
for disposal.
All documentation should carry a standard disclaimer, which establishes that:
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the POWA offers no warranty on the condition of goods for sale;
all goods are generally sold ‘ex works’ or ‘as is, where is’; and
the POWA will not admit any claims for liability resulting from any error in
description or quantity.
The POWA should seek legal advice regarding the drafting of any disclaimer in relation
to disposal of goods.
InternalDisposal(SaleofGoodstoParliamentaryStaff)
The POWA may dispose of any item to parliamentary staff that is valued at less than
$1,000 provided it is approved by the Accountable Authority.
Appropriate procedures ensure fairness and probity of the internal disposal process. This
includes the implementation of a bidding process where goods are advertised internally
(public notice board, employee circular, POWAnet), a closing date and time are
nominated, sealed offers are placed in a tender box and a written evaluation report is
produced. Officers coordinating the internal disposal process should not enter an offer in
the disposal process.
RecyclingandRe‐UsingGoods
The POWA is to encourage the use of goods that minimise their negative impact upon
the environment. To achieve this, a number of principles can be followed:
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prior to deciding whether to dispose of goods assessed as unserviceable, the
POWA should consider whether it can be refurbished or repaired; and
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where goods have no potential for resale, consideration should be given to
competitively offering excess goods to recycling suppliers.
HeritageandCulturalInterestItems
It is essential that the POWA preserve items of genuine heritage and cultural value for
future generations. This principle must therefore be considered when deciding whether to
dispose of an item. Consideration must be given to the Parliament’s conservation plan.
Assistance in identifying heritage or cultural value must be sought from the appropriate
State and Commonwealth agencies.
When disposing of goods with heritage or cultural value it is not always appropriate to
seek the best available net return. It is important to consider the recipient’s capacity to
purchase, maintain and care for the goods. Under some circumstances, it may be more
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desirable to accept an offer that is less than market value to ensure that the goods are
preserved in an appropriate forum.
DestructionandDumping
The destruction or dumping of surplus goods is generally considered the least favourable
method for disposing of goods. Destruction or dumping should only be considered when
it is established that the goods:
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have no resale value;
cannot be recycled;
cannot be refurbished or re-used; and
cannot be disposed of in any other way, due to government policy or public
safety, or where they are of a hazardous or pollutant nature.
Prior to disposing of hazardous or potentially pollutant goods advice should be obtained
on waste management policy and related environmental considerations. This can be
obtained from the Waste Management Division of the Department of Environment.
PublicationofDisposalsbyPublicTender
Where disposal of goods is to be undertaken by public tender, advice should be sought
from the office of Government Procurement, Department of Finance.
6. Purchase Order Guidelines
Each of the Parliamentary Departments have access to the on-line Purchase Order system
to facilitate documentation of supplier contracts and expenditure commitments. These
guidelines are intended to assist staff to identify when a purchase order should be raised,
and the workflows associated with the PO document. The guidelines should be read in
conjunction with the Parliament of Western Australia Procurement Policy and
Guidelines, available to all staff on POWAnet.
6.1. Purpose of a purchase order
A purchase order serves three purposes:
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to document a supply agreement between the Department and the identified
supplier;
to document an expenditure commitment for budgeting purposes; and
to document that an expenditure commitment/purchase has been appropriately
authorised.
6.2. Exemption from requirement to raise a purchase order for a purchase
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Where there is a standing contract for an ongoing supply (includes Australia Post,
Synergy, building lease, photocopier servicing and other specific supplier
contracts entered into by the Department).
Where a purchase is made using an on-line ordering system of an approved
supplier (eg. Corporate Express stationery ordering).
Where goods or services are procured and paid for by Corporate Credit Card at
the time of the purchase.
Where the cost of the supply is less than the approved petty cash transaction limit.
The purchaser may still choose to raise a purchase order for the purpose of tracking
expenditure commitments, in which case it may not be necessary to send the order to the
supplier.
6.3. Timing for raising a purchase order
All staff involved in procuring goods or services for their Department should be aware of
the POWA Procurement Policy and Guidelines. Stage 6 of the procurement process is
‘Order goods or services’ - this follows appropriate processes for identifying the need,
obtaining quotations and confirming authorisation for the purchase. A purchase order
should be raised when the preferred supplier is identified and definitely before the
invoice is received.
6.4. Workflow steps associated with a purchase order
1)
2)
3)
4)
5)
6)
7)
8)
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Complete steps 1-4 of the procurement process:
 Identify the purchase requirement (goods/services specifications).
 Identify budget source/Department (and seek approval if necessary).
 Obtain quotations (refer to guidelines - direct purchase if < $5,000 but
must still be able to justify value for money decision and compliance with
other policies).
 Evaluate quotations against procurement policy (including value for
money).
Create the purchase order in the online system and have it approved (steps 5 & 6).
Send a copy of the purchase order to the supplier (if appropriate).
When goods/services are received, check that supply is in accordance with the
order, and stamp and sign the invoice to confirm that all goods/services have been
received.
If the purchase order has been fully completed against one invoice, attach the
order to the invoice, complete the invoice payment voucher, incur/certify and
send to Finance.
If the value of the invoice differs from the purchase order, write a brief
explanation for the variance on the order.
If an invoice is for part-supply of an order, take a copy of the order and attach it
to the invoice. Write ‘Part Supply’ on the order copy and highlight the lines that
have been supplied. Complete the invoice payment voucher, incur/certify and
send to Finance.
It is recommended to keep a copy of the order which has been part supplied and
write on it the invoice number that has been paid and the amount paid.
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9)
When the final invoice for a particular purchase order is received, attach the copy
of the order and write on it “Order Complete”. Finance will then know to close
the order.
6.5. Tracking of outstanding commitments
When a purchase order is attached to an invoice for payment, the PO number is recorded
against the transaction, and the invoice number is recorded against the order in the PO
system. When the order has been fully supplied, the order will be ‘completed’ in the
system.
At the end of each month, the Finance staff extract a list of ‘purchase orders awaiting
invoice’ for each Department. Where the outstanding value is over $10,000, the creator
of the order will be contacted to determine whether the goods/services have been
supplied, and if so, an accrual will be recorded in the finance system. At the end of each
quarter, all outstanding orders are reviewed to determine whether the commitment is still
valid and record accruals for reporting purposes.
6.6. Cancelling a purchase order
Contact the Chief Finance Officer by email, providing details of why the order must be cancelled,
including a statement of whether the order had been issued to the supplier.
6.7. Administrative Changes to the Purchase Order system
Where there is a change to the substantive or acting occupancy of a position having authority to
access the purchase order system, the Supervisor responsible for the position should email the
Chief Finance Officer to request and authorise the change. The request will be submitted to IT
who will make the change and confirm with the relevant staff member that the change has been
completed.
6.8. Login and password problems in the Purchase Order system
IT Helpdesk can be contacted either by telephone (ext 200) or by logging a service request
through POWAnet.
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