conditions such as the requirement to seek at least a minimum number of quotes may still apply. NOTE: Purchases for requirements listed under Schedule 2 are exempt from VGPB policy. However, documentation that satisfies internal audit requirements of appropriate process applies. ICT Software Intellectual Property Government’s default position with regard to intellectual property (IP) for software created under contract allocates ownership of the IP to the software developers rather than the Victorian Government. In exceptional circumstances, entities may need to own IP software created for it by software developers. Grounds that may establish exceptional circumstances may include but are not limited to: security; where statutes, regulations or prior obligations to a third party or parties preclude ownership by the contractor; and where exclusive use of the developed software by the government party is necessary. Process for Seeking Approval to Depart from the ICT Software Intellectual Property Default Position (Exemption) In seeking approval to depart from the default position, documentation must be provided which sets out the grounds establishing exceptional circumstances to justify a proposed departure. KEY REQUIREMENTS: Responsibility for Granting Exemptions Where an exemption form (or equivalent) is required, responsibility for granting the exemption rests with the AO/delegate/financial delegate (whichever is specified by internal process). The AO is responsible for approving an exemption (movement from the default position) from the ICT Software ownership default position. Subject to the agreement by the AO, approval of exemptions less than the public tender threshold may be delegated to persons with the appropriate financial delegation. Exemptions should be approved prior to process approval and supplier engagement. Granting of an exemption does not preclude obtaining process approval for all matters listed under Schedule 1 or other factors not listed that are relevant to the proposed procurement. The approved exemption form should be included along with any relevant documentation associated with process approval. Financial Approval All purchases establishing a contractual arrangement require financial approval provided by a person with the applicable financial delegation. Definitions Accountable Officer The head of any given department or, for a public body, the Chief Executive Officer (whatever their title) of that body. Covered entity Departments and administrative offices bound by Victorian Government Purchasing Board (VGPB) policy Exemption Form A form that can be used to seek an exemption. A sample form is hyperlinked to this policy. Open Tendering A one stage process which involves the release of a Request for Tender (RFT) to the open market for purchases over $150 000 or under where the entity considers this approach as appropriate. Selective Tendering
KEY REQUIREMENTS: 1. Clarity and Comprehensiveness of Documentation Documentation seeking process approval should be structured to ensure reporting consistency against all relevant factors. Where appropriate, documentation should adopt the standard form template developed for cross jurisdictional use (Procurement Process Report) or develop an appropriate form for single entity or project specific use. Attachments should be included if using a standard form template or tool where the addition of such information would assist in the understanding of factors relevant to the proposed procurement. 2. Approval of Process Matrix Process Approval Category Process Approval Thresholds Process Approval Party One off Supply purchase (excluding SPCs and SEPCs, or purchase from an existing standing offer agreement) Estimated value less than $100,000 Process approval by financial delegate. Financial approval to be provided by an officer with the appropriate financial delegation using an agreed form of contract (or relevant instrument). One off Supply purchase (excluding SPCs and SEPCs, or from an existing standing offer agreement) Estimated value more than $100,000 Process approval by APU if estimated value within department accreditation level. Process approval by VGPB if estimated value outside department accreditation level after consideration and endorsement by APU. Outcome of the market engagement phase is to be disclosed on the Contracts Publishing System within 60 days after award of contract. Financial approval to be provided by an officer with the appropriate financial delegation using an agreed form of contract (or relevant instrument)1. SPP establishment SPP process applies to procurement with an estimated value more than $10 million or considered a high risk or complex project of lesser value. SPP establishment – as above including additional step: Outcome of the market engagement phase to be reported to the VGPB prior to engaging supplier(s). SPC – mandated services Any value. Mandated entities are Minister for Finance and the VGPB are responsible for formally approving the
existing standing offer agreement (SPC or SEPC) of use' for the contract. The 'rules of use' may require the use of specific forms for obtaining quotations, seeking multiple bids from a panel of suppliers above certain values, require the use of specific supplier engagement forms, and category management reporting/supplier performance forms. The 'rules of use' for the contract supersede normal procurement processes including quotation and tender threshold requirements. of use' for the contract. There should be no requirement to obtain further APU/VGPB process approval unless the entity has adopted internal procedures for further reporting/review. A purchase order contract in excess of $100,000 from an existing standing offer agreement (SPC or SEPC) is to be disclosed on the Contracts Publishing System within 60 days after award of contract. Financial approval to be provided by an officer with the appropriate financial delegation using an agreed form of contract (or relevant instrument)1. Note 1 An agreed form of contract could be a purchase order, a specific form devised for using the SPC or SEPC or other departmental instrument. Legend: SPP – Strategic Procurement Plan SPC – State Purchase Contract SEPC – Sole Entity Purchase Contract ‘Rules of Use’ – also referred to as ‘How to Use this Contract’ PROCUREMENT ACTION IN CASES OF DUMPING CONTEXT: When an exporter sells a product to Australia at a lower price than the price charged in its home market, that exporter may be engaged in a form of price differentiation known as “dumping”. Anti-dumping remedies are available where the dumping causes or threatens to cause material injury to an Australian industry. The term “dumping” can refer to a subsidy as well as the actual dumping of a good. The Australian Customs Service has sole responsibility for investigating and reporting dumping matters to the federal Minister. These investigations cover applications for new anti-dumping and countervailing measures; reviews or revocations of existing measures; dumping duty assessments; and applications for continuation of existing measures past a five-year sunset period. The Australian Customs Service has explicit procedures for initiating and conducting an inquiry. In addition, Customs provides an advisory service – through the Dumping Liaison Unit – to assist all interested parties involved in dumping matters. KEY REQUIREMENTS:
Tier 1 department ($1 million) where the APU has decided that variations with a cumulative value in excess of $200,000 exclusive of the initial contract value will require APU process approval Variation (exclusive of the initial contract value) Cumulative value Approval financial delegate Approval APU Approval VGPB Case 1 $180 000 √ $80 000 $260 000 √ √ N/A $50 000 $310 000 √ √ N/A Case 2 $250 000 √ √ $350 000 $600 000 √ √ $500 000 $1 100 000 √ √ (endorsement) √ Example 2. Context: Tier 2 department ($10 million) where the APU has decided that variations with a cumulative value in excess of $1 000 000 exclusive of the initial contract value will require APU process approval Variation (exclusive of the initial contract value) Cumulative value Approval financial delegate Approval APU Approval VGPB Case 1 $750 000 √ $200 000 $950 000 √ $150 000 $1 100 000 √ √ N/A Case 2 $8 500 000 √ √ N/A $3 500 000 $12 000 000 √ √ (endorsement) √ 1. Variations Disclosure Notification Protocol for the Contracts Publishing System (CPS) requires the disclosure of any contract in excess of $100 000 and the disclosure of any subsequent variation to a contract sum listed on the CPS system. 2. State Contract Variations Approval Process The variation approval process for State Purchase Contracts and Sole Entity Purchase Contracts is detailed in the State Purchase Contracts Policy and the Sole Entity Purchase Contracts Policy VICTORIAN GOVERNMENT PURCHASING BOARD (VGPB) POLICY FOR CONDUCT OF COMMERCIAL ENGAGEMENTS POLICY CONTEXT: