Document ID: chunk:federal_register_of_legislation:F2024L00627:body:0:p6
Version: federal_register_of_legislation:F2024L00627
Segment Type: other
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Character Range: 14882–18150

must apply a procurement threshold of $80,000 and a reporting threshold of $10,000 for procurements other than the procurement of construction services. They may opt-in to coordinated procurements and must only comply with those policies of the Commonwealth that specify compliance by corporate Commonwealth entities.

Using Appendix A exemptions
    3.11         When an Appendix A exemption applies, the additional rules of Division 2 for procurements at or above the relevant procurement threshold do not apply to the procurement, but the relevant entity must still comply with the rules for all procurements (Division 1), excluding paragraphs 4.7, 4.8 and 7.26. This does not prevent a relevant entity from voluntarily conducting the procurement for goods or services covered by an Appendix A exemption in accordance with some or all of the processes and principles of Division 2.

Division 1: Rules for all procurements

    4.            Value for money

Considering value for money
    4.1             A thorough consideration of value for money begins by officials clearly understanding and expressing the goals and purpose of the procurement.
    4.2             When a business requirement arises, officials should consider whether a procurement will deliver the best value for money. It is important to take into consideration:
       1. stakeholder input;
       2. the scale and scope of the business requirement;
        3. the relevant entity's resourcing and budget;
       4. obligations and opportunities under other existing arrangements;
       5. relevant Commonwealth policies; and
       6. the market's capacity to competitively respond to a procurement.
    4.3             When a relevant entity determines that procurement represents the best value for money, these considerations will inform the development and implementation of the procurement.

Achieving value for money
    4.4             Achieving value for money is the core rule of the CPRs. Officials responsible for a procurement must be satisfied, after reasonable enquiries, that the procurement achieves a value for money outcome. Procurements should:
       1. encourage competition and be non-discriminatory;
       2. use public resources in an efficient, effective, economical and ethical manner that is not inconsistent with the policies of the Commonwealth;[5]
        3. facilitate accountable and transparent decision making;
       4. encourage appropriate engagement with risk; and
       5. be commensurate with the scale and scope of the business requirement.
    4.5             Price is not the sole factor when assessing value for money. When conducting a procurement, an official must consider the relevant financial and non-financial costs and benefits of each submission including, but not limited to the:
       1. quality of the goods and services;
       2. fitness for purpose of the proposal;
        3. potential supplier's relevant experience and performance history;
       4. flexibility of the proposal (including innovation and adaptability over the lifecycle of the procurement);
       5. environmental sustainability of the proposed goods and services (such as energy efficiency, climate change impact, environmental impact, circularity of the