Written by: Jacqui Sealy – The Pro Forum Community of Practice

As of 1st July 2024, there have been some significant updates to the Commonwealth Procurement Rules, or CPRs for short.  These rules are applicable now for all new business transactions with the Australian Government, including new contracts and contract variations that are yet to be entered into.

The CPRs are a set of rules that government officials must comply with when they procure goods and/or services.  These rules are set out to provide flexibility in processes and fairness to the suppliers with the objective of achieving value for money in all financial transactions.

In this new edition of the CPRs, the key changes that are worth noting includes:

  1. Ethical behaviour (Sub-clause 6.6 and 6.7)
    This clause now provides clarification on what officials must consider and do to actively prevent corrupt behaviour.

 

  1. Commonwealth Contracts (Sub-clause 6.12)
    A mandatory requirement that has been added when formulating new Commonwealth Contracts is to incorporate the Commonwealth Supplier Code of Conduct in all Commonwealth contracts with limited exceptions.

 

  1. Appendix A: Exemptions (Point 17)
    An increase in the exemption value from $200,000 to $500,000 for all agencies procuring goods and services from an SME.  Previously, the exemption for up to $500,000 was only applicable to the Department of Defence.

 

  1. Appendix A: Definitions
    The definition of Small and Medium Sized Enterprises generally stipulates the number of full-time equivalent employees that the firm has, however this definition has now been clarified to include the full-time equivalent employees of all and any associated entities to the firm in this count.  Associated entities may include parent companies, subsidiaries, and any related bodies corporate to the firm.  This means any large corporation that submits a tender under a subsidiary cannot be considered an SME under this definition.

 

For the latest copy of the CPRs and the Table of Changes, please visit the following links:

 

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.