Procurement Connected Policies


  1. The application of section 44 of the Financial Management and Accountability Act 1997 (FMA Act) and FMA Regulation 9 to procurement undertaken by FMA Act agencies means the procurement must not be inconsistent with the policies of the Commonwealth.
  2. Table 1 (Procurement Connected Policies) lists the policies of the Commonwealth that relate to procurement. It does not preclude officials applying any other Government policy that may relate directly to a specific project or procurement.
  3. Policy Departments (the agencies originating the respective policies) are responsible for the implementation of all aspects of their policy (or policies) listed in Table 1.
  4. Table 2 details other obligations that need to be considered in procurement.
  5. Officials are responsible for informing themselves of the policies that apply to a specific procurement. They should refer to their agency’s Chief Executive’s Instructions for guidance and, if needed, approach the relevant Policy Department for further information on a specific policy.
  6. For further information and advice on policies that interact with procurement, consult the relevant Policy Department (refer to the relevant website links in Table 1 in the first instance).
  7. Commonwealth Authorities and Companies ACT 1997 bodies are subject to policies where applied under a General Policy Order.
Table 1: Procurement Connected Policies
Policy / Guidance Policy Description Policy Department Contact Point Application / Threshold
Australian Industry Participation

Australian Industry Participation Plans for Government Procurement [External Link]

The Australian Industry Participation (AIP) National Framework applies to major Commonwealth Government procurements (generally above $20 million). Tenderers for certain Commonwealth procurements are required to prepare and implement an AIP Plan. Department of Industry


02 6213 6404

Applicable to large Commonwealth tenders generally above $20 million.
Coordinated Procurement

Coordinated Procurement

Whole-of-government procurement arrangements are being put in place for some goods and services. Their use is mandatory for FMA Act agencies. Finance coordinated
No minimum threshold.
Employment and Workplace Relations

Fair Work Principles [External Link]


The Fair Work Principles require Commonwealth entities to obtain information from tenderers about their compliance with their obligation to ensure fair, cooperative and productive workplaces, and precludes Commonwealth entities from contracting with suppliers in defined circumstances.

Department of Employment


1800 064 516

Applies to all covered procurements.

  • A$80,000 for
    FMA Agencies.

A$400,000 for relevant CAC Act Bodies.

The National Code of Practice for the Construction Industry and Implementation Guidelines [External Link]

Applies to all Commonwealth construction projects, and indirectly funded projects where the Australian Government’s contribution is:

  • at least $5 million and represents at least 50 per cent of the total construction project value; or

$10 million or more, irrespective of the proportion of Australian Government funding.

Department of Employment


1300 731 293

No minimum threshold for Commonwealth-funded construction projects.
Energy Efficiency in Government Operations [External Link] The policy aims to reduce the energy consumption of Australian Government operations with particular emphasis on building energy efficiency. It commits to a progressive improvement of overall agency energy performance through annual energy intensity reporting, the use of Green Lease Schedules, and minimum efficiency requirements. DCCEE govoperations@
Government Energy Efficiency Team
02 6159 3123
No minimum threshold.
National Packaging Covenant [External Link] The Australian Government is committed to the National Packaging Covenant and is actively participating in its development and implementation. The Covenant was signed by the Australian Government in November 2005. It aims to reduce waste generation and environmental impacts of packaging. Department of the Environment productstewardship

No minimum threshold.

National Waste Policy [External Link] The National Waste Policy aims to avoid the generation of waste; reduce the amount of waste (including hazardous waste) for disposal; manage waste as a resource, ensure that waste treatment, disposal, recovery and reuse is undertaken in a safe and environmentally sound manner; and contribute to broader economic, environmental and social goals.

Department of the Environment


No minimum threshold.

Australian Government ICT Sustainability Plan 2010-2015 [External Link] The Plan requires agencies to adopt mandatory environmental standards for ICT acquisitions and to strengthen management processes for environmental risks and issues such as managing ICT energy use, carbon emissions and waste. There are also agency performance measures and targets to drive environmental performance and sustainability improvement across the Australian Government. Department of the Environment sustainableICT@

Government ICT Sustainability Team (02) 6274 1003 or (02) 6274 1799
Applicable to ICT procurements.
Financial Framework
Commonwealth Fraud Control Guidelines [External Link] The Commonwealth Fraud Control Guidelines provide national minimum standards to assist agencies in carrying out their responsibilities to combat fraud against their programs including outsourced functions and programs. AG

02 6141 2763

No minimum threshold.
Issuing and Managing Indemnities, Guarantees, Warranties and Letters of Comfort [PDF document - 141 KB] These guidelines advise officials of their responsibilities when considering entering into arrangements involving issuing indemnities, guarantees, warranties or letters of comfort on behalf of the Commonwealth. They also reinforce the importance of risk management strategies and awareness regarding the use of such instruments. Finance finframework@
No minimum threshold.

Procurement On-Time Payment Policy for Small Business

(This replaces Finance Circular 2008/10 Procurement 30 Day Payment Policy for Small Business for procurement contracts entered into from 1 September 2012)


For payments valued up to $5million (GST inclusive) to small business, Financial Management and Accountability Act 1997 (FMA Act) agencies are to agree maximum payment terms not exceeding 30days.  Additionally, for procurement contracts with small business valued up to $1 million (GST inclusive), the policy requires agencies to pay penalty interest on request from small business for payments exceeding the maximum payment terms up to 60 days, and automatically to the small business for payments exceeding 60 days.

Finance procurementagency

Applies to small businesses for payments up to A$5 million. Agencies are to pay interest on late payments for contracts up to A$1 million.

Australian Government Foreign Exchange Risk Management Guidelines and Finance Circular These guidelines articulate government policy on foreign exchange risk management where payments are made in currencies other than Australian dollars. Finance finframework
No minimum threshold.
National Public Private Partnership Policy Framework and Guidelines [External Link] Public Private Partnership principles must be considered when developing procurement proposals which scope the use of private financing and assessment, and approval processes for such proposals. Infrastructure Australia www.infrastructure.

Procurements with capital valued above $50 million.

May apply to procurements below the threshold if suitable.

Competitive Neutrality Guidelines for Managers Competitive neutrality requires that significant Government business activities should not enjoy net competitive advantages over their private sector competitors simply by virtue of public sector ownership. Finance and Treasury finframework@
No minimum threshold.
Information, Communications and Technology
Limited Liability in Information and Communications Technology Contracts This Finance Circular provides guidance on the capping of liability when entering into Information and Communications Technology (ICT) contracts. Finance procurementagency
No minimum threshold.
ICT SME Participation Procurement Policy[External Link] The SME Participation Procurement Policy outlines requirements for Australian Government ICT contracts valued $20 million and above to include, as a general rule, a minimum level of SME participation of 10 per cent of the contract value for ICT hardware procurements, and 20 per cent of the contract value for ICT services procurements. Department of Industry ictsmeprocurement
Applicable to ICT procurements from SMEs valued at or above $20 million.
International Obligations
Trade Sanctions [External Link] On rare occasions trade sanctions may apply to goods that an agency may wish to procure. DFAT Sanctions@dfat.
No minimum threshold.

Legal Services Directions [External Link]

Legal Services Directions (LSDs) establish the framework within which government legal services must be delivered. Paragraph 9A.1 and Appendix F of the Legal Services Directions 2005 sets out the rules and obligations Commonwealth agencies must adhere to when procuring legal services. This includes using a common form tender package (including a standard Request for Tender and Deed of Standing Offer) when tendering for legal services. AG No minimum threshold.
Intellectual Property Principles for Australian Government Agencies [External LinkPDF document] The Statement of IP Principles sets out a policy for management of intellectual property (IP) by Australian Government agencies. The IP Principles cover a full range of issues relevant to effective management of IP, including procurement, record keeping, industry development and broader innovation policy, and public access. AG


02 6141 3300

No minimum threshold.
Protective Security Policy Framework [External Link] Agency heads are responsible for ensuring official resources, especially classified information, are secured from unacceptable risk, including when services are delivered by external service providers. The Protective Security Core Policy and mandatory requirements direct agencies to ensure that contracted service providers comply with the Protective Security Policy framework. AG

No minimum threshold.
Australian Government Information, Communications and Information Systems Security Manual [External Link] ACSI 33 sets access control standard for In-Confidence information. It recommends use of Secure Socket Layer to protect transmission of information over any network, but particularly the Internet. DSD No minimum threshold.
Social Inclusion
Commonwealth Disability Strategy [External Link] The Commonwealth Disability Strategy was introduced to assist Government agencies meeting their obligations under the Disability Discrimination Act 1992. Its purpose is to make sure that people with disabilities have the same level of access to all Australian Government policies, programs and services as other members of the Australian community. Department of Social Services No minimum threshold.

Workplace Gender Equality Procurement Principles and User Guide

[External Link]


The Workplace Gender Equality Procurement Principles and User Guide (the Principles) requires Australian Government agencies to obtain a letter of compliance from certain tenderers (employers with 100 or more employees) which indicates compliance with their obligations under the Workplace Gender Equality Act 2012. The Principles provide advice to agencies, tenderers and suppliers, and procuring officials and officers on their roles and responsibilities under the policy.

Department of Social Services

Workplace Gender Equality Agency

(02) 9432 7000

Procurements that exceed the relevant procurement threshold outlined in paragraph 3.3 of the Commonwealth Procurement Rules:

  • A$80,000 for
    FMA Act Agencies.
  • A$400,000 for relevant CAC Act Bodies.
  • A$9 million for procurements of construction services by FMA Act agencies or relevant CAC Act bodies.
Indigenous Opportunities Policy [External Link] Tenders, where the expenditure is over $5 million ($6 million for construction) in a region with a significant Indigenous population, are required to develop an Indigenous Training, Employment and Supplier Plan as part of their application. Agencies are required to consult with DEEWR when planning a procurement activity that exceeds the policy threshold. Department of Prime Minister and Cabinet Applies to procurements over $5 million ($6 million for construction).
Table 2: Obligations in Procurement
Policy / Policy Guidance Policy Description Policy Department Contact Point
International Obligations

Obligations under International Agreements in Government Procurement

Obligations under Australia’s Free Trade Agreements are incorporated into, and will be met by following, the CPGs. An example of an international obligation is the Mandatory Procurement Procedures. Finance and DFAT

Standard Contract Clauses to Provide ANAO Access to Contractors´ Information

Agencies must consider including a provision in contracts that enable access to contractors’ records and premises by the Australian National Audit Office. Model access clauses are provided. Finance
Mandatory Reporting Requirements for Procurement Activities

Agencies are to:

  • report contracts and standing offers valued at $10,000 (including GST) or more on AusTender ( within six weeks of entering into the agreement.
  • to publish details for contracts valued at $100,000 (including GST) or more on their websites in accordance with the Senate Order on Departmental and Agency Contracts.
  • publish annual procurement plans by 1 July each year.
Requirements for Annual Reports for Departments, Executive Agencies [External LinkWord Document] A core set of information is required in annual reports to ensure that accountability requirements are met and to provide consistency for readers. PM&C [External Link]
Government Guidelines for Official Witnesses before Parliamentary Committees and Related Matters [External LinkPDF document] Public servants are required to assist Ministers to fulfil their accountability obligations by providing full and accurate information to the Parliament about the factual and technical background to policies and their administration. PM&C [External Link]

Privacy Obligations for Commonwealth Contracts [External LinkPDF document]

The Privacy Act 1988 (s95B) imposes obligations on Commonwealth agencies when entering into contracts to provide services to or on behalf of the agency to apply the information privacy principles (IPPs). The information sheet provides a link to model contract clauses for the protection of personal information. OPC

1300 363 992

Records Management
Records Issues for Outsourcing [External Link] Agencies contracting out the provision of services must, under the Archives Act 1983, ensure the arrangements include records management practices which meet Australian Government standards and requirements. Records Issues for Outsourcing provides guidelines for agencies about their responsibilities when employing contractors. It includes GDA 25 authorising the transfer of relevant agency records to service providers. NAA

Agency Service Centre [External Link]


Record Requirements for Agencies

To understand what records should be created during procurement processes and how they should be managed, the Archives Act 1983 requires that you consider requirements to make and keep records as evidence of business activity, business-related risks, and other factors. These policies and guidelines provide advice on managing the records created during procurement:


Agency Service Centre [External Link]



Confidentiality in Procurement

To identify and manage confidential information whilst ensuring an accountable and transparent procurement process. Finance