Annual Procurement Plans

Principles

1. Annual Procurement Plans (APPs) provide information on significant procurements entities plan to undertake over the next twelve months.

2. The Commonwealth Procurement Rules (CPRs) paragraph 7.7 require entities to maintain on AusTender, a current APP to draw suppliers' early attention to potential procurement opportunities.

3. Planned procurements listed in APPs are to include details such as:

  • the subject matter of the procurement;
  • the estimated financial year quarter of the approach to market (ATM) ;
  • whether the procurement will potentially allow multi-entity access; and
  • the goods and services category code (UNSPSC code).

4. APPs include a concise strategic procurement outlook statement, which broadly discusses any key, major or strategic initiatives from which the entity expects procurements to arise. More than one strategic procurement outlook statement can be provided, for example along business lines such as corporate, legal, and information and communications technology.

5. If a procurement is included in an APP as a planned procurement, theCPRs allow an entity to reduce the submission time frame for that procurement. However, entities are responsible for ensuring that procurement processes are transparent and that any shortened time frame does not detract from either the open competition aspect of the procurement process, the ability of potential suppliers to submit quality bids, or the outcome.

6. An APP is a planning document. It is appropriate for information contained in an APP to change in order to remain current with an entity's procurement needs.

Practice

1. There are no value thresholds for inclusion of a procurement in an APP. It is a matter of judgement, for entities, as to which anticipated procurements to include. Factors an entity may wish to consider when deciding which procurements to note in the APP include:

  • information that would add value to the entity's relationships with industry, potential suppliers and contractors;
  • the level of meaningful information available;
  • whether the entity wishes to have the option to reduce time limits forsubmissions;
  • the likely significance of the procurement;
  • the likely value;
  • potential for multi-agency access;
  • the likelihood of the procurement actually occurring; and
  • the method of procurement.

Note: Entities should only include in their APPs planned procurements which are anticipated to be conducted through an open approach to the market.

Entities should not include in their APPs planned procurements which are anticipated to be conducted through prequalified tender or limited tender approaches to the market. Including these procurements may undermine the process as potential suppliers can watch any planned procurements but may not necessarily be invited to participate in a prequalified tender or limited tender procurement process.

2. APPs facilitate early procurement planning and draw potential suppliers' early attention to entities planned procurement activity for the forthcoming year. APPs also allow entities to identify opportunities for collaborative procurements with other entities.

3. If an entity has no significant procurements planned in the next twelve months, they should provide an APP stating that no significant procurements are planned.

4.Entities can establish a link on their website to the APP on AusTender, to enhance visibility of the plans.

5. An Accountable Authority of an entity may choose not to publish an APP or not to include details of a procurement in an APP where publication of such information may pose a risk to essential security interests.


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