Section F: Agency Obligations

Section F of the Western Australian Procurement Rules lists the Agency Obligations 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.

The Rules in Section F apply to State agencies at an organisational level. These include processes, procedures and obligations that the State agency must comply with.

Rule F1

Establish and Maintain Internal Processes
  1. State agencies must maintain internal processes and procedures to support compliance with the Procurement Rules.

Rule F2

Assign Responsibilities to Appropriate Officers
  1. State agencies must assign responsibility for Procurement and contract management activities to Officers, with skills commensurate to the value, risk and complexity of the activity.

Rule F3

Establish and Maintain a Delegation and Authorisation Register
  1. A State agency’s Accountable Authority must establish a register of the position titles and/or classifications authorised or delegated the authority to make procurement decisions on behalf of the Accountable Authority.
  2. The register must set out the details (including any conditions or limitations) of the delegated or other authority to:
    1. award contracts
    2. approve contract Variations
    3. give an approval or exemption required by these Rules
    4. make other procurement decisions, as determined by the Accountable Authority of a State agency
  3. The register may be a standalone document, or it can be incorporated into another register maintained by the State agency.

Rule F4

Establish and Maintain an Exemption Register
  1. State agencies must establish and maintain an exemption register, to contain details of all relevant exemptions specified in these Rules.

Rule F5

Establish and Maintain a Contracts Register
  1. A State agency’s Accountable Authority must require a contract register to be maintained.
  2. The contract register must be in a searchable electronic format, which may be part of one or more systems that store and record relevant contract information.
  3. Contract(s) arising from a Procurement valued at $50,000 or more (inclusive of GST and all extension options), must be recorded in the register within 30 Days of the contract award date.
  4. A contract must remain recorded in the active register for at least 12 months after its completion, thereafter the record may be archived.
  5. A register of contracts must contain the following minimum information:
    1. a unique identifier (contract number);
    2. the contract title, 
    3. legal identity of the Supplier;
    4. the commencement date and expiry date of the contract (if applicable);
    5. the estimated dollar value of the contract at award;
    6. the number and total value of approved Variations to date;
    7. for Standing Offers, total expenditure (updated annually); and
    8. final contract dollar value at final contract completion;
  6. Where it is not practicable for a State agency to record any of the information required by this Rule, an Authorised Officer of the State agency may approve alternative arrangements. The reasons for the State agency’s alternative arrangements must be recorded in the State agency’s exemption register and communicated to the Department of Finance.

Rule F6

Strategic Forward Procurement Planning
  1. State agencies must undertake a strategic forward procurement planning exercise annually, recording relevant information within a strategic forward procurement plan.
  2. Strategic forward procurement plans must be:
    1. based on the next two financial year periods;
    2. approved by the State agency’s Accountable Authority; and
    3. submitted to the Department of Finance by a required date, as notified annually.
  3. The plan must:
    1. list anticipated upcoming Procurements over the next two years valued at $250,000, or more, drawing upon information from:
      1. the State agency’s contract register;
      2. Procurements arising from asset investment proposals, detailed in the State agency’s Strategic Asset Plan (with relevant extract appended); and
      3. the State agency’s annual budget allocation (capital and recurring) and approved asset investment program.
    2. identify Procurements that may be classified as Strategic Projects, for the purpose of commencing early consultation with the Department of Jobs Tourism, Science and Innovation;
    3. identify Procurements that may be well suited to assist the State agency in meeting relevant ºÚÁÏÕýÄÜÁ¿ procurement-connected policy commitments, including, but not limited to engaging:
      1. Registered Aboriginal Businesses;
      2. apprentices and trainees;
      3. Australian Disability Enterprises;
      4. regional businesses; and
      5. small and medium enterprises; and
    4. attach from the State agency’s contract register, an analysis of material contract Variations that have previously occurred, which may inform procurement planning for the relevant period.

Rule F7

Application for Exemption from Committee Review
  1. A State agency may apply to the Relevant Review Committee for an exemption from the requirement(s) under Rule C3 (procurement planning information) and/or Rule D7  (evaluation reports) to submit documentation to the Relevant Review Committee for any or all low risk and routine Procurements.
  2. An application by a State agency for an exemption under this rule must:
    1. identify, by reference to the strategic forward procurement plan, the Procurement or category of Procurement and identify the procurement documentation; and
    2. provide a declaration stating the rationale for the application, approved by an Authorised Officer of the State agency.
  3. If the Relevant Review Committee endorses the application for exemption in whole or part, then the State agency is not required to submit the exempt procurement documents for review by the committee.
  4. If after an exemption is granted, the Procurement is reassessed as representing a high risk, by:
    1. the State agency; or
    2. Department of Finance, if involved in the Procurement then the State agency or Department of Finance must notify the other.
  5. If a notification is given under paragraph (4), then the exemption is revoked for any Procurement documentation not yet finalised, and must be submitted to the Relevant Review Committee.

Rule F8

Works Procurement Review by Relevant Review Committee
  1. A State agency listed under Rule C1, that procures works without the involvement of the Department of Finance, may apply to the Department of Finance to use a Relevant Review Committee for the purpose of review and assurance of its procurement planning documentation and procurement evaluation reports, in circumstances where:
    1. the State Agency does not maintain its own documented assurance and review measures, and
    2. the Department of Finance agrees to the State agency’s request.

Rule F9

Works Procurements over $1.5 Million – Project Bank Accounts
  1. State agencies must implement Project Bank Account arrangements for all works Procurements, where:
    1. the value of the construction component of the Procurement is $1.5 million or greater, and
    2. one or more subcontractors will be engaged on the project.
  2. Paragraph (1) does not apply where:
    1. the project delivery method requires the State agency to pay subcontractors directly, or
    2. the Deputy Director General – Advisory Services, Department of Finance exempts the State agency from the requirement in a written record.
  3. An exemption under paragraph (2)(b) must be recorded in the State agency’s exemption register.

Rule F10

Be Responsive to Complaints
  1. State agencies must ensure appropriate complaint handling procedures are in place, including acknowledging receipt of, and providing a timely response to, any complaints received about Procurement or Procurement Activities.

Rule F11

Contract Management Assurance
  1. State agencies must put measures in place to ensure that contracts are managed in accordance with the contract management or project management plan (where applicable) and that plans are kept current.

Rule F12

Assigning Agency Level Obligations
  1. Due to machinery of ºÚÁÏÕýÄÜÁ¿ arrangements, a State agency which is a department of the Public Service (Lead State Agency), and sub-departments and statutory authorities which are grouped with it (Group State Agencies), may operate a centralised procurement function to support the needs of some or all of those Group State Agencies.
  2. A Lead State Agency may, where an Authorised Officer of the Department of Finance approves, take responsibility on behalf of some or all Group State Agencies for complying with such procurement rules in this section F as are approved.
  3. Where such approval is given, the relevant approved procurement rules will apply to the Lead State Agency in respect of the relevant Group State Agencies, and responsibility for compliance with them will not rest with the individual Group State Agencies participating in the arrangement.
     

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