Written by: Brett Lyndon – The Pro Forum Community of Practice

With a new Federal Government installed in Canberra there has been another update to the current version of the CPRs effective from 1 July 2022.

The new changes include a new foreword from the new Minister for Finance stating the new Government’s position on government procurement activities.

It includes the addition of climate change impacts when considering Value for Money (VFM), and reference to the newly created Department of Climate Change, Energy, the Environment and Water that highlights the new Government’s commitment to act on climate change.

There is also an increase in Australian Government sourcing of Small to Medium Enterprises (SMEs) from 10% to 20% by value. This is intended to help SMEs recover from the effects of COVID-19 shutdowns and lost business opportunities.

The inclusion of a new paragraph directing officials to approach multiple potential suppliers when sourcing from a “standing offer” is intended to create further competition and potentially achieve a better value for money outcome. Though I’m not too sure this is technically correct as a standing offer is the agreement made between the government entity and one supplier. In the Department of Finance’s publication Australian Government Contract Management Guide, Section 4.1 states that: “Where multiple suppliers are selected, this is commonly known as a ‘panel’.  Perhaps they are referring to a panel?

The current version of the CPRs and table of changes can be found here: Commonwealth Procurement Rules | Department of Finance

 

NOTE: The content of this article is intended to provide a general guide to the subject matter, and specialist advice should be sought about your specific circumstances. The content must not be relied upon as legal, technical, financial or other professional advice.