3.1 Planning

Clause 1

All ‘procurement’ must be planned, and must achieve ‘value for money’. The extent of planning undertaken must be commensurate with the value, risk and complexity of the ‘procurement’.

Clause 2

‘Value for money’ is the best available outcome for money spent. ‘Value for money’ assessments must consider relevant ‘government objectives’ and targets, whole-of-life costs and non-cost factors set out in Principle 1.

Clause 3

Upon identifying a need to procure a ‘good and/or service’, the following elements must be addressed by the business area and/or procurement function:

• specify the need, timing, and budget
• clearly define ‘procurement’ objectives to meet needs
• identify the desired ‘value for money’ outcome for each ‘procurement’ and evaluate for ‘value for money’, including applying targets as specified in Principle 1 where applicable
• conduct market research
• develop a ‘procurement’ strategy to deliver the intended business outcome, including whether the ‘good and/or service’ is available under a ‘common-use supply arrangement’ (refer clause 9)
• manage demand, and as applicable, disposals, resource consumption and waste reduction
• seek approvals
• agree roles and responsibilities, including whether the business area or ‘procurement’ function will be responsible for complying with contract disclosure obligations, and who will manage contracts resulting from the activity.

'Significant procurement'

Clause 4

For all ‘significant procurement’, a ‘significant procurement’ plan must be developed which addresses the following elements in addition to elements set out in clause 3:

• perform demand and supply market analysis
• develop procurement strategies and methods (refer clauses 5 - 8 below) to achieve a ‘value for money’ outcome, including applying the Local Benefits Test and Best Practice Principles as required by this Policy, and applying ‘responsible public procurement’ choices (Principle 2)
• develop performance measures and contract management arrangements
• identify and assess risks related to the ‘procurement’ and put risk management strategies in place. Risk assessments address the value, complexity and sensitivity of ‘procurement’
• incorporate any relevant ‘category’ strategy targets or actions, if applicable (this action applies to budget sector agencies only).

Use the most appropriate 'procurement' strategy and method

Clause 5

Assess complexity, scope, opportunities and risks associated with ‘procurement’ objectives, and the level of competition in the supply market. Next, identify the ‘procurement strategy’ and method (‘open’, ‘limited’ or ‘selective’) to be used to approach ‘suppliers’.

Clause 6

‘Procurement’ strategies should cover how the strategy will:

• achieve the ‘procurement’ objective(s)
• engage effectively with the market, including when early market engagement will deliver innovation and better outcomes
• take into account the ‘procurement’ activities of other ‘agencies’ in the market, maximising ‘procurement’ outcomes for the benefit of buyers and ‘suppliers’
• pursue relevant government economic, ethical, social and environmental objectives and targets set out in Principle 1 wherever possible.

Flexible procurement techniques

Clause 7

Flexible ‘procurement’ techniques may be used to pursue relevant government economic, ethical, social and environmental objectives and targets set out in Principle 1, and innovation. These include ‘limited offer method’ and ‘set-asides’. Where ‘procurement’ is disclosed on the ‘Forward Procurement Pipeline’, and a flexible ‘procurement’ technique is used, this must be stated on the Pipeline.

Clause 8

A ‘limited offer method’ may be used if a ‘procurement’ need can be met by another Queensland Government ‘agency’, including commercialised business units.

Use 'common-use supply arrangements'

Clause 9

If a ‘procurement’ need can be met using a ‘common-use supply arrangement’, the arrangement must be used unless one of the following situations applies:

• the delivery area is regional or remote, and there are no capable and competitive local suppliers on the arrangement
• the ‘procurement’ activity directly supports a relevant government economic, ethical, social and environmental objective or target set out in Principle 1, and cannot be met using the arrangement.

Exemptions from using an applicable ‘common-use supply arrangement’ must be approved by the relevant ‘agency’ delegate.

Publish potential future procurement

Clause 10

Provide details of potential future ‘procurement’ activities, as specified in agency procurement plans, to category lead agencies upon request for publication on the ‘Forward Procurement Pipeline’.

Clause 11

Publish notices of potential future ‘procurement’ on the Queensland Government’s QTenders website.

Modern slavery

Clause 12

Identify, assess and take action to eliminate as far as possible, or mitigate ‘modern slavery’ risks in relation to ‘agency supply chains’ in accordance with the guidance provided in Eliminating modern slavery in government supply chains.

This is separate to any obligation ‘agencies’ may have under the Modern Slavery Act 2018 (Cth).

When procuring under a declared 'Supply Chain of State Significance'

Clause 13

Where a ‘Supply Chain of State Significance’ is declared, an "if not, why not" statement must be recorded where a decision is made to not use a ‘Queensland supplier’, and must reflect what engagement has taken place with ‘local suppliers’.

When procuring food and beverages—Buy Queensland first

Clause 14

Wherever possible, food and beverages that are made, grown or produced in Queensland must be prioritised in food and beverage ‘procurement’ activities, including functions and events. Use the Queensland Government Food and Beverage Supplier Directory to help identify potential ‘suppliers’.

When procuring paper products

Clause 15

Wherever possible, procure Australian-sourced, environmentally accredited paper products.

3. The procurement process

In this section:

1. 3.1 Planning
2. 3.2 Sourcing, evaluation and contract formation
3. 3.3 Supplier selection
4. 3.4 Award
5. 3.5 Contract management

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