Procurement Reform

Developing a whole-of-government procurement framework

The Department of Finance (Finance) is leading the procurement reform project. 

Inconsistencies in procurement processes are challenging and frustrating for agencies and industry. They also restrict government’s ability to deliver better outcomes for Western Australians. 

This project will:

  • reduce red-tape
  • improve efficiencies, and
  • increase public confidence in government spending. 

It will also improve the fragmented approach currently in use across government. 

The Procurement Act 2020 will support the establishment of a new procurement framework which, enable us to build upon and improve procurement practice. To support the legislation, a series of initiatives are being developed in a collaborative and staged approach.

The new WA Procurement Rules will replace the State Supply Commission’s policies. The Rules will apply to all types of procurement and will come into effect 1 June 2021.

The Procurement Act 2020

The Procurement Act 2020 will be enacted in two stages.

Stage 1 - Step One, July 2020, enables an emergency response to facilitate a ‘works’ procurement focused COVID-19 strategy.

Stage 2 - Step Two, 1 June 2021, the Procurement Act 2020 will commence in full.

Finance will facilitate the following actions to transition the public sector to the new procurement framework and subsequent policy and practice amendments.

Step One - Legislation and COVID-19 Emergency Response

Show more
Number Action Deliverable Progress Status Completed
1 Legislation – Passed through parliament Legislation enacted Completed Completed June 2020
2 COVID-19 Response – Procurement policy amendments for works contracts COVID-19 response Completed Completed July 2020

 

Step Two - Immediate Actions to support Procurement Act 2020

Show more
Number Action Deliverable Progress Status Transition Period
3 Procurement Rules – Development and introduction of new procurement policies to replace the State Supply Commission policies. Finance to develop and provide ongoing training and support to agencies. Completed and launched Procurement Rules Completed Complete Active date:
1 June 2021
4 Consultation – With key stakeholders on the new Procurement Rules and framework. Completed consultation Completed Complete July 2020 -
Qtr 2 2021
5 WA Social Procurement Framework - Clarifying the consideration of social impact (economic, social and environmental outcomes that benefit the Western Australian Community) in value for money decisions. Guidance, training and supporting resources to be developed. Completed framework Completed Complete Active date:
1 June 2021
6 Procurement Directions – A mechanism to implement whole-of-government rules and policies including Premiers Circulars and Treasurers Instructions. Completed necessary Directions Completed Complete Active date:
1 June 2021
7 Agency Specific Procurement Directions – Rules and policies relating to the procurement of goods, services or works by a specific agency. Completed necessary Agency Specific Directions Completed Complete Active date:
1 June 2021

Qtr = calendar year quarter

Step Three - Procurement Leadership and Governance

Show more
Number Action Deliverable Progress Status Transition Period
8 Procurement Functional Leadership (initial) – New Finance service offerings and education and training to support are formalised and implemented Formalised Finance position Developing On track Qtr 1 and Qtr 2 2021
9 Simplified Procurement Documents - Standardised suite of consistent procurement resources for works, goods and services procurement Tranche 1. Completed documentation Completed Complete Qtr 1 and Qtr 2 2021
10 Audit and Investigations – Stage 1 – A new audit and investigation function is formalised to review State government procurements Completed function Developing On track Qtr 1 and Qtr 2 2021
11 Finance Procurement Committees – Committees are reviewed and recommendations are implemented Completed transition Complete Complete Active date: 1 June 2021
12 Supplier complaints & industry feedback - improved process is formalised Completed recommendation Completed Complete Qtr 1 and Qtr 2 2021
13 Contract Management – Including guidelines, tool kits, education and training Completed documentation Implementing On track Qtr 1 and Qtr 2 2021
14 Debarment Regime – Establishes governance and grounds for which suppliers who do not act responsibly can be excluded from government Completed function Developing On track Through 2021

Qtr = calendar year quarter

Step Four - Other Initiatives

Show more
Number Actions Progress Status Transition Period
15 Audit and Investigations – Stage 2 Audit processes in place including assurance and thematic audit options Developing On track Through 2021
16 Tenders Systems – Review and develop recommendations to implement Developing On track Through 2021
17 Build Contract Negotiation Capability – Including supporting resources and frameworks Developing On track Through 2021
18 Procurement Risk Management – Including supporting resources and frameworks Developing On track Through 2021
19 Procurement Training and Education – Reviewing current sector capability and establish new supporting resources to address identified gaps. Developing On track Through 2021
20 Whole of government contracts - Scope, review and establish for all types of procurement Developing On track Through 2021
21 Forward procurement planning - Develop processes to support effective planning, improving transparency allowing for identification of aggregated buying initiatives Developing On track Through 2021

Step Five - Procurement Leadership (ongoing)

Show more
Number Action Deliverable Progress Status Transition Period
22 Opportunity to design, adapt and respond to client needs in regards to services provided by Finance for best practice in goods, services, works and community services procurement. Formalised service offering Developing On track Qtr 3 2020 –
Qtr 2 2021

Qtr = calendar year quarter

Proposed debarment regime

Show more

Proposed Western Australian debarment regime - Improving suppliers' business practices. (Item 13 under Step 3 above)

Procurement Directions

Show more

Procurement Directions set policies that State agencies must follow when purchasing goods, services or works.

The General Procurement Direction 2020/01 - Procurement Measure to Support the Economic Recovery of the WA Building and Construction Industry, is the first of these directions. More information is also available in the Supporting Economic Recovery for Local Businesses Guideline (Works)

For a list of all the current Directions, see the Procurement Directions web page.

Page reviewed 2 June 2021