DEVELOPING PROCUREMENT-CONNECTED POLICIES

Principles

1. Procurement-connected policies are government policies which an approver must take into account before approving a spending proposal (the Procurement) under Regulation 9 of the Financial Management and Accountability Regulations 1997 (FMAR 9).  
2. Principles underpinning procurement-connected policies are that they:
• must be consistent with the Commonwealth Procurement Guidelines (CPGs) which is a legislative instrument;
• must align with Australia’s international obligations under free trade agreements;
• are the responsibility of the agency that owns the policy (Policy Department);
• do not form part of the CPGs but are standalone policies that are recognised in a procurement process through FMAR 9;
• should minimise any administrative burden, procurement risks (eg. schedule) and associated compliance costs for line agencies and businesses in achieving the policy outcome; and
• should promote and not restrict competition in the government procurement market.  Potential suppliers must remain able to be treated equitably based on their legal, commercial, technical and financial abilities.
3. The Department of Finance and Deregulation (Finance) provides advice on proposals for procurement-connected policies to ensure they:
• are consistent with the procurement policy framework and other relevant frameworks;
• are practical for agencies to implement; and
• balance industry compliance with government accountability.
4. The procurement-connected policy must consider the needs of procurement officials in agencies.  There must be a minimal administrative burden placed on procurement officials in achieving the policy outcome. 
5. Officials should ensure early consultation with Finance (procurementagencyadvice@finance.gov.au).  Finance will assist Policy Departments understand the impact of the policy on stakeholders and the procurement policy framework.  Finance will also be able to advise on seeking policy authority from the Government.