3. How to Use the Commonwealth Procurement Rules

3.1  The CPRs set out the rules that officials must comply with when they procure goods and services. The CPRs also indicate good practice. The CPRs have been designed to provide officials with flexibility in developing and implementing procurement processes that reflect their relevant entity’s needs.

3.2  Achieving value for money is the core rule of the CPRs. This requires the consideration of the financial and non-financial costs and benefits associated with procurement.

3.3  Further information and guidance on applying the CPRs are available on Finance’s procurement policy website at www.finance.gov.au/procurement.

3.4  Relevant entities may have additional rules, guidance, templates or tools that apply when conducting procurements.

Compliance with the two divisions of the CPRs

3.5  Officials of non-corporate Commonwealth entities must comply with the ‘rules for all procurements’ listed in Division 1, regardless of the procurement value. Officials must also comply with the ‘additional rules’ listed in Division 2 when the estimated value of the procurement is at or above the relevant procurement threshold and when an Appendix A exemption has not been utilised.

3.6  Officials of corporate Commonwealth entities prescribed in section 30 of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) as having to comply with the CPRs must comply with the ‘rules for all procurements’ listed in Division 1 and the ‘additional rules’ listed in Division 2 when the expected value of the procurement is at or above the relevant procurement threshold and when an  Appendix A exemption has not been utilised.

3.7  Despite being prescribed corporate Commonwealth entities, Old Parliament House (OPH), and the Australian Human Rights Commission (AHRC), must apply the CPRs as if they were a non-corporate Commonwealth entity (as set out in paragraph 3.5). The procurement thresholds for OPH and AHRC are the same as non-corporate Commonwealth entities however their reporting threshold is $80,000. They may opt-in to coordinated procurements and must only comply with those policies of the Commonwealth that specify compliance by corporate Commonwealth entities.

3.8  Despite being a corporate Commonwealth entity, paragraph 3.7 also applies to the Commonwealth Superannuation Corporation in regards to its administrative functions only.

Using an Appendix A exemption

3.9  When an Appendix A exemption applies, and the relevant entity chooses to utilise the exemption, the procurement is exempt from the additional rules for procurements at or above the relevant procurement threshold (Division 2) but must still comply with the rules for all procurements (Division 1).


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Last updated: 08 March 2017