Section E: Contract Management

Section E of the Western Australian Procurement Rules lists the Contract Management rules that apply to all State agencies and all types of procurement including goods, services and works

This Section is part of the WA Procurement Rules which are issued as a Procurement Direction under the . 

The Rules replace the State Supply Commission’s policies and apply to all types of procurement including goods, services and works. The WA Social Procurement Framework supports value for money factors in the Rules.

Rule E1

Develop a Contract or Project Management Plan
  1. Contract management or project management plans must be developed for all Procurements with a Total Estimated Value of $5 million and above.
  2. Provided a Procurement is not classified as high risk, an Authorised Officer can provide an exemption from developing the relevant plan by determining and justifying in a written record that the relevant plan would be of limited value due to the nature of that Procurement.
  3. A determination not to develop a relevant plan must also be recorded in the State agency’s exemption register.

Rule E2

Apply Rigour to Contract Variations

E2.1 Seek Advice from Finance on Variations

  1. Before a Variation is approved under Rule E2.2, if the Department of Finance was involved in the Procurement under Rule C1, then State agencies must seek written advice from the Department of Finance if the Variation(s) individually or cumulatively:
    1. are valued at $250,000 or above; or
    2. propose to extend the contract by 6 or more months past its final expiry date.
  2. In providing advice under paragraph (1), an Authorised Officer of the Department of Finance may approve alternative criteria to those specified in paragraph (1) for when the State agency is required to seek subsequent advice.
  3. When seeking advice for Procurements valued over $5 million - where preparing a Contract Management Plan was not exempted under Rule E1 - the original and current contract management plan must be provided to the Department of Finance.
  4. Paragraph (1) does not apply to the Department of Finance, where the Department of Finance is principal to the contract for and on behalf of another State agency.

E2.2 Approval of Contract Variations

  1. Variations to the contract must be approved by an Authorised Officer.
  2. For Community Services Procurements only, Variations, valued at over $5 million, extending the original contract term to a preferred service provider, using a restricted approach in accordance with the Delivering Community Services in Partnership Policy, must be submitted to the Relevant Review Committee.

E2.3 Record Details of Variations

  1. Variations to the contract must be:
    1. recorded; and
    2. captured in relevant project or contract management plan documentation, electronic system, or other means of recording contract Variations.
  2. A State agency must ensure the contract register is updated in accordance with Rule F5.

Rule E3

Update Contract Expenditure Information

E3.1 Publish Updated Contract Management Information on Tenders WA

  1. State agencies must publish on Tenders WA:
Type of ContractPublication Details
Standing Offers
  1. The number of Variations to; and the actual expenditure under, the Standing Offer on an annual basis, within two months of the anniversary of the commencement date of the Standing Offer; and
  2. The actual expenditure under the Standing Offer within 30 Days of final completion of the Standing Offer.
Contracts awarded under a Standing Offer

Where the Buying Rules require contract award information to be published under Rule D8.1 (3):

  1. the number and value of Variations to the contract on an annual basis, within two months of the anniversary of the contract commencement date; and
  2. the actual expenditure under the contract within 30 Days of final completion.
All other contracts
  1. the number and value of Variations to the contract on an annual basis, within two months of the anniversary of the contract commencement date; and
  2. the actual expenditure under the contract within 30 Days of final completion.

E3.2 Exemption from Publishing Expenditure Update

  1. A State agency is not required to comply with the requirements of Rule E3.1 where:
    1. an Authorised Officer determines and justifies in writing that the release of the updated information would present a Significant Operational Risk; or
    2. an exemption has already been granted under D8.2 to exempt the requirement to publish the contract award details.
  2. A decision made under this Rule must be recorded in the State agency’s exemption register.

Rule E4

Disposal of Goods
  1. State agencies must dispose of goods in a manner that is ethical, equitable, efficient, and, where practical, maximises a value for money outcome for government.
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