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Finance Minister's (CAC Act Procurement) Directions 2004

Finance Minister's (CAC Act Procurement) Directions

I, NICK MINCHIN, Minister for Finance and Administration, make these Directions under subsection 47A (2) of the Commonwealth Authorities and Companies Act 1997.

Dated 1 December 2004

[SIGNED]

Minister for Finance and Administration

Part 1 Preliminary

1 Name of Directions

These Directions are the Finance Minister's (CAC Act Procurement) Directions .

2 Commencement

These Directions commence on 1 January 2005.

3 Application of Directions

(1) For subsection 47A (2) of the Act, these Directions are given to the directors of a relevant CAC Act body on matters relating to the procurement of property or services.

(2) These Directions do not apply to a relevant CAC Act body in relation to:

(a) the procurement of construction services if the value of the procurement is estimated to be equal to or less than $6 000 000; and

(b) the procurement of property or services other than construction services if the value of the procurement is estimated to be equal to or less than $400 000.

(3) These Directions do not apply to the Australian War Memorial in relation to the procurement of information technology and communication technology.

Note Defined terms for these Directions are set out in clause 8.

Part 2 Directions

4 Mandatory use of CPGs

The directors of a relevant CAC Act body must ensure that its officials apply Division 2 of the CPGs ["Mandatory Procurement Procedures"] for a covered procurement above the threshold described under subclause 3 (2).

Note 1 The CPGs apply as modified by clause 7.

Note 2 The CPGs may set out mandatory reporting requirements for procurement.

5 Applying Division 1 of CPGs

(1) The directors of a relevant CAC Act body must ensure that its officials:

(a) apply Division 1 of the CPGs ["The Procurement Policy Framework"] for a covered procurement; or

(b) act under subclause (2).

(2) The directors of a relevant CAC Act body must ensure that, if an official takes action that is not consistent with Division 1 of the CPGs (other than action mentioned in clause 4), the official makes a record of the reasons for doing so.

(3) The directors of a relevant CAC Act body must ensure that its officials comply with a requirement in Division 1 of the CPGs for a matter to be published in a way set out in the CPGs.

Note The CPGs apply as modified by clause 7.

6 Exemption from applying CPGs

(1) An official is not required to apply a provision of the CPGs that applies to an agency under the FMA Act (including a provision set out in Division 3 of the CPGs) only on the basis of its being a statement of policies of the Commonwealth for the purposes of regulation 9 of the FMA Regulations.

(2) Subclause (1) applies despite clauses 4 and 5.

Note Nothing in this Direction otherwise requires a relevant CAC Act body to comply with the FMA Act or the FMA Regulations.

7 Modifications of CPGs

If the officials of a relevant CAC Act body apply the CPGs, the directors of the relevant CAC Act body must ensure that the officials apply the CPGs incorporating the modifications in the following table:

A reference in the CPGs to … Is to be read as a reference to …

an agency	the relevant CAC Act body
CEIs, or Chief Executive's Instructions	the directions, guidance and documentation issued by the relevant CAC Act body relating to procurement by the body
a Chief Executive	the person identified, in accordance with the Act, as responsible for managing the affairs of the relevant CAC Act body in a way that promotes the proper use of the body's resources Note This person would typically be a director or a relevant officer, as defined under the Act or the Corporations Act 2001 (as applicable).
an official	Any of the following: (a) a director of the relevant CAC Act body; (b) an employee of the relevant CAC Act body; (c) a person who conducts a procurement function for, or on behalf of, the relevant CAC Act body
public money	money held by the relevant CAC Act body on its own account

Part 3 Interpretation

8 Interpretation

(1) In these Directions:

covered procurement has the same meaning as in the CPGs.

CPGs means the Commonwealth Procurement Guidelines:

(a) issued by the Finance Minister under regulation 7 of the FMA Regulations; and

(b) as in force from time to time.

FMA Act means the Financial Management and Accountability Act 1997.

FMA Regulations means the Financial Management and Accountability Regulations 1997.

official means any of the following persons:

(a) a director of the relevant CAC Act body;

(b) an employee of the relevant CAC Act body;

procurement:

(a) includes the whole process of acquiring property or services, as defined in the CPGs; but

(b) does not include the following:

(i) the making of a grant (whether under the legal form of a contract or a conditional gift);

(ii) the making of a statutory appointment, or an appointment by a Minister using the executive power;

(iii) the engagement of an employee.

relevant CAC Act Body means a Commonwealth authority or a wholly-owned Commonwealth company specified for regulation 9 of the Commonwealth Authorities and Companies Regulations 1997.

(2) In these Directions, a word or expression that is:

(a) defined in the Act; and

(b) used in these Directions;

has the same meaning as in the Act, unless the contrary contention appears.

Copyright Notice

© Commonwealth of Australia 2004
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