Commonwealth agencies subject to the Financial Management and Accountability Act 1997 (FMA Act) must market test for their transactional banking services in line with the principles of open and effective competition found in the Commonwealth Procurement Guidelines. Agencies are expected to market test as soon as possible.
Market Testing Toolkit
Finance directly supports the market testing efforts of agencies by providing general guidelines, through the development of a Market Testing Toolkit and providing guidance regarding the related agency banking framework.
The aim of the pre-qualification scheme is to identify authorised deposit-taking institutions (ADIs) that have indicated to Finance they are able to satisfy core transactional banking requirements applicable to FMA Act agencies. The pre-qualification scheme is open to the participation of all ADIs who meet the definition of a 'bank' under section 5 of the FMA Act. For the purposes of this scheme an ADI includes the Reserve Bank of Australia (RBA).
The list of pre-qualified ADIs only includes ADIs which have indicated to Finance that they have the capacity to comply with the Core Protocols and their acceptance of the Model Contract. Accordingly, this list does not guarantee ADIs' compliance with the Core Protocols. Each agency, as part of the tender process, is responsible for ensuring their transactional banker (whether or not included in the list) comply with the Core Protocols as a mandatory requirement.
- Core Protocols - The Core Protocols are mandatory requirements to be met by ADIs providing transactional banking services to FMA Act agencies. The Core Protocols have been prescribed under the current Financial Management and Accountability (Finance Minister to Chief Executives) Delegation. They are necessary for the Reserve Bank to discharge its central bank responsibilities and for the Commonwealth to manage its 'group' cash and debt. Agencies must stipulate compliance with the Core Protocols in their banking contracts by reference to the publications listed below which, together, set out the requirements.
Agencies have delegated authority, under the FMA Act, to establish an agreement for banking services with any ADI that meets the definition of a 'bank'. Accordingly, agencies are free to adopt their own procurement strategy.
Agency Banking Toolkit
Provides an outline of the Toolkit and the market testing policy.
Designed to assist agencies in the use of the Toolkit and in managing their market testing of transactional banking services. The Guidelines address key issues that might typically arise as agencies plan and conduct their market testing process.
Guide to Banking Needs Analysis
Comprises a Banking Services Check List and proforma Statement of Requirement. It will assist agencies to better determine their needs for services and in setting these out in their Request for Tender.
Glossary of Banking Services
Provides generic descriptions of typical banking services to assist agencies identify and describe their service requirements. It is designed to be used in conjunction with the Guide to Banking Needs Analysis.
Model Request for Tender
Includes standard conditions of tender, provisions for the Statement of Requirements and evaluation criteria. It can be adapted by agencies to suit their individual needs. Agencies should ensure, however, that the tender conditions reflect precisely the manner in which they will be conducting the tendering process.
Contains a set of standard terms and conditions with clauses covering, for example: Core Protocols, risk and liability, privacy, security, confidentiality, intellectual property; and fees. The Model contract provides a modular framework for incorporation of a range of transactional banking and related services.
Provides an outline of the pre-qualification scheme, details of the assessment criteria and guidance, how the pre-qualification list should be used by agencies and how updates to the list are to occur.
References and Links
Financial Management and Accountability (Finance Minister to Chief Executive's) Delegation
Incorporates the core service requirements (Core Protocols) and details agencies and transactional bankers' responsibilities with respect to agency banking and market testing.
Instructions for Transactional Bankers
Provides transactional bankers with a detailed understanding of their obligations to the Commonwealth in the provision of banking services to agencies.
- Instructions for Transactional Bankers [ 1.2 MB ]
- Instructions for Transactional Bankers [ 455 KB ]
- Instructions for Transactional Bankers [ 84 KB ]
Provides the current ADIs on the pre-qualification list.
Pre-qualification List contact details
Provides contact details for ADIs currently included on the pre-qualification list.