Procurement must be done in such a way as to:
- obtain value in the expenditure of public money (value for money)
- provide for ethical and fair treatment of participants; and
- ensure probity, accountability and transparency in procurement operations.
The Public Finance (Control and Management) Regulations 2013 provide more detail on how procurement is to be conducted.
The Regulations provide that procurement over $3,000 must be conducted by a procurement agent.
The Act provides for the appointment of a procurement agent to conduct procurement operations on behalf of Government.
The procurement agent must be approved by Cabinet.
Public Finance Act Amendment 2019 – Procurement Agent
- Brisbane Procurement (Nauru Consulate in Brisbane)
- Eigigu Procurement
- Nauru Post Office
The Regulations require that each public authority prepare an annual procurement plan, and that a procurement plan be prepared for each procurement operation.
Procurement plans should include:
- detail on the item to be procured, including the requirements
- procurement method (open competitive tender, sole source direct procurement etc)
- detail on how value for money is to be achieved by the proposed procurement method
- indicative budget for the procurement and confirmation that funds are available, or the process to secure the funds
The Public Finance (Control and Management) Regulations 2013 provide the framework for undertaking procurement by public authorities, including Departments.
Section 8(1)(f) of the Regulations require that for procuring goods and services, including construction works, but not including professional services of a consultant (who should be hired through a Request for Proposal process):
- The principal method of procurement should be by competitive tender
- If a method other than the principal method is chosen, the reasons should be recorded in writing and should relate to one or more of the following:
- The estimated value of the procurement operation
- The nature of the procurement operation
- The nature of the market
- The urgency or other relevant circumstances.
Lack of planning is not a reason for urgency. Usually, the higher value the procurement, the more competitive the procurement process should be.
In all cases, the aim is to achieve value for money for the Republic.
Where a department or SOE seeks an exemption from the procurement regulations, the form below must be approved and included in the FMIS record.
Secretary for Finance
Department of Finance