Buying Journey 2 – Buying from an Agency Contract or a Common Use Arrangement

How to buy from a Common Use Arrangement, or from your agency’s Standing Offer
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Your decisions from the Choose your Buying Journey have brought you to Buying Journey 2. 

This Buying Journey will take you through the steps that must be followed when buying from a Agency Contract or a Common Use Arrangement (CUA) or from a Standing Offer created by your agency.

If your Agency has an existing contract that meets your need, you should buy from that contract. 

Common Use Arrangements exist for goods and services commonly bought by government, for example fuel, computers, electricity, travel, advertising, groceries and stationery.

CUAs deliver more than just savings through pre-negotiated pricing. They also offer efficiencies like easy ordering risk mitigation strategies such as strict due diligence practices as part of the tendering process. These contracts have you covered when it comes to compliance with relevant government policy and insurance requirements too.

Buying rules are developed for each CUA and all purchases made against a CUA must be made in accordance with these rules. The rules will also specify whether a CUA is mandatory.

Achieve Value for Money

Value for money is the central procurement principle from which all other procurement policies and decisions flow. It is reflected in Western Australian Procurement Rule A1 – Achieve Value for Money.  All purchases, regardless of value, must represent value for money.

Value for money includes a consideration of whether there is a bona fide need to buy the good or service.  Could you borrow the good from another State agency?  Does your agency or the public sector more broadly have the expertise to deliver the service themselves?

Having decided you need to purchase the good or service a value for money decision, for low value purchases, for example a purchase under $500, might be as simple as a mental price assessment at the point of purchase. Ask yourself, could I justify my decision to a member of the community? Would they think the outcome is fair?

Achieving value for money in procurement is much more than choosing the lowest price for a good or service.  

Achieving value for money requires a consideration of:

  1. government’s social, economic and environmental priorities;
  2. cost; and
  3. other non-cost factors.

For further information on the Government’s social, economic and environmental priorities see the Social Procurement Framework.

The price assessment must include both the price; and other non-cost factors including:

  • fitness for purpose and quality;
  • critical timeframes;
  • supplier capability, performance and financial capacity; and
  • maintenance or operating implications, including service and support.

Non-cost factors also include a consideration of risk. For a discussion about risk see the Manage Risk Guideline. The Department of Finance’s Risk Workbook might also be a useful resource to help you define your risks.

Your agency is also likely to have its own risk management framework.

Act Ethically – With Integrity and Accountability

Ensuring all procurement is conducted with integrity and accountability is a key supply policy objective and is reflected in Western Australian Procurement Rule B – Act Ethically – With Integrity and Accountability.

State agency employees must apply the highest levels of ethical behaviour in all areas of their work. This is particularly important in procurement, as it involves spending public money and is subject to high levels of public scrutiny.

Ethical behaviour includes being transparent and accountable.  You can be ethical by:
•    declaring any conflicts of interest;
•    treating all suppliers equally; and
•    keeping adequate records.

Also ensure you follow your agency’s delegation register and gain the appropriate approvals prior to engaging a supplier.  The key approvals in the planning phase is the approval to spend – often called budget approval – and the approval to go to market.

For further information on acting ethically, including managing conflicts of interest and record keeping, please see the Act Ethically Guideline. You may also find the Department of Finance’s Declaration of Interest and Confidentiality form useful.

Request Development, Identifying suppliers and Contract Formation

Document your agency’s needs, the quantity required and the timelines.  

If your agency already has a contract in place for the item or service you need then buy in accordance with your agency’s contract.

If your required item or service is available on a Common Use Arrangement then buy in accordance with the Buyers Guide for that particular Common Use Arrangement.

A list of all Common Use Arrangements is available.

A Purchasing from Common Use Arrangements and Agency Standing Offers Guideline is available.

Manage the contract

Ensure that the successful supplier provides the products or services in accordance with the quote at the accepted price.

Any variations to the contract must be approved by an accountable officer within your State agency, and must be managed in accordance with Western Australian Procurement Rule E2  – Apply Rigour to Contract Variations.

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