ACT Government Procurement Board
Transmittal Certificate
ACT Government Procurement Board Transmittal Certificate 2016-17 [PDF 252KB]
Organisational Overview and Performance
Organisational Overview
The ACT Government Procurement Board (the Board) was established on 1 August 2001 by the Government Procurement Act 2001 (the Act). The Board’s functions, as specified under section 6 of the Act, are:
- to review, and give advice to territory entities on, procurement issues;
- to review, and give advice on:
- procurement proposals and activities referred to the board by a Minister or responsible Director‑General; or
- procurement proposals for procurement matters declared by the Minister;
- to review procurement proposals of territory entities in accordance with the relevant regulation;
- to consider, advise on and, if appropriate, endorse procurement practices and methods for use by territory entities;
- to provide advice to the Minister on any issue relevant to the procurement activities of territory entities or the operation of this Act; and
- to exercise any other function given to the board under this Act or any other Territory law.
The Government Procurement Regulation 2007 specifies the types of procurements that must be considered by the Board.
The regulations prescribe that the Board must review procurement proposals with an estimated value of $5 million or more, or $1 million or more for procurements:
- being undertaken by a territory entity other than a public service directorate;
- involving development or redesign of information and communications technology systems; or
- involving disposals of assets.
The Board’s purpose, to advise Government on practices and processes that will deliver better procurement outcomes for the Territory, is underpinned by the principle prescribed in section 22A of the Act: ‘A territory entity must pursue value for money in undertaking any procurement activity’. In pursuing value for money, the entity must have regard to probity and ethical behaviour; management of risk; open and effective competition; optimising whole of life costs; and anything else prescribed by regulation.
The Board seeks to ensure that processes for major procurements comply with the Government’s procurement framework, which includes legislation and policies available from the Procurement website (www.procurement.act.gov.au).
The Board does not set policy; it provides support and advice to the Government on the implementation of procurement policy. The Board operates through the Procurement and Capital Works in the Chief Minister, Treasury and Economic Development Directorate, the role of which is to provide procurement and project delivery services to directorates. The Board’s involvement on individual procurements seeks to support Government by ensuring that procurement and project management risks are appropriately treated and relevant Government policies are applied.
The Board is not responsible for procurement decisions. This responsibility rests with Directors‑General, who are responsible for all operations associated with the running of their directorates, and the heads of other relevant entities.
Internal Accountability
Membership of the Board
Section 11 of the Act stipulates that the Board consists of nine part-time members:
- a Chair, who is a public employee member;
- a Deputy Chair, who is a public employee member;
- three other public employee members; and
- four non-public employee members.
Note: ‘Public employee’, as per the dictionary, part 1, of the Legislation Act 2001 (ACT), means (a) a public servant; or (b) a person employed by a territory instrumentality; or (c) a statutory officeholder or a person employed by a statutory officeholder.
The Chair of the Board at 30 June 2017 was Ms Karen Doran, Executive Director, Economic and Financial, Chief Minister, Treasury and Economic Development Directorate. The position of Chair, like all the Board memberships, is part-time, appointed by the Minister for Economic Development (the Minister) under the Act. The Chair reports directly to the Minister in relation to her role on the Board.
When filling member vacancies, priority is given to significant management experience in procurement and/or capital works delivery. The Board also seeks to have expertise in ICT, law, finance and risk management, as well as experience in the private sector, across its membership.
The ACT Government has a policy of achieving and maintaining 50 per cent representation of women on its boards and committees. The Office for Women (Community Services Directorate) is consulted each time a Board vacancy is being filled.
Eight Board membership positions were occupied at 30 June 2017, with three of these positions, including the Chair and Deputy Chair, held by women.
In December 2016, Ms Bronwen Overton-Clarke resigned as the Chair of the Government Procurement Board. Ms Karen Doran was appointed Chair on 6 March 2017, having previously held the position of Deputy Chair. Ms Meredith Whitten was appointed Deputy Chair on the 6 March 2017 having previously been appointed to the Board on 2 August 2016 – at the same time as Mr Shaun Strachan and Mr Graham Tanton. Mr Richard Bear and Mr Roger Broughton were reappointed as non-public employee members on the 11 July 2016.
Members | Name | Position |
|---|---|---|
Public employee member (Chair) | Ms Karen Doran | Executive Director, Economic and Financial, Chief Minister, Treasury and Economic Development Directorate |
Public employee member (Deputy Chair) | Ms Meredith Whitten | Deputy Director-General, Business Services Division, Education Directorate |
Public employee member | Mr Graham Tanton | Executive Director, Shared Services, Chief Minister, Treasury and Economic Development Directorate |
Public employee member | Mr Shaun Strachan | Deputy Director-General Corporate, Health Directorate |
Non-public employee member | Mr Stephen Goggs | |
Non-public employee member | Ms Virginia Shaw | |
Non-public employee member | Mr Roger Broughton | |
Non-public employee member | Mr Richard Bear |
Board Meetings
The Board met on 28 occasions during 2016-17.
| 2012-13 | 2013-14 | 2014-15 | 2015-2016 | 2016-2017 |
|---|---|---|---|---|---|
Total Board Meetings | 22~ | 30# | 32* | 34 | 28 |
Business Meetings | 1 | 0 | 1 | 1 | 0 |
Proposal Meetings | 19 | 30# | 31* | 33 | 28 |
Proposals considered | 37 | 49 | 67 | 63 | 67 |
Estimated Value of Proposals ($ million) | 1,371 | 844 | 2,096 | 1,908 | 913 |
~ This includes 2 meetings held for briefings, where proposals and Board business were not considered.
# This includes 6 meetings held electronically, that is, via email.
* This includes 3 meeting held electronically, that is, via email.
Member | Meetings attended | Comments |
|---|---|---|
Ms Bronwen Overton-Clarke | 14 | Chairperson last meeting 13 December 2016 |
Ms Karen Doran | 27 | Chairperson |
Ms Meredith Whitten | 21 | Deputy Chairperson |
Mr Graham Tanton | 18 | First meeting 9 August 2016 |
Mr Shaun Strachan | 20 | First meeting 9 August 2016 |
Mr Stephen Goggs | 23 | |
Ms Virginia Shaw | 24 | |
Mr Richard Bear | 23 | First meeting after reappointment 12 July 2016 |
Mr Roger Broughton | 22 | First meeting after reappointment 12 July 2016 |
Mr George Tomlins, Executive Director Procurement and Capital Works and Mr Glenn Bain, Executive Director Procurement Projects attended the Board as ex officio members. This assisted the Board by providing greater insight into procurement policies, practices, arising matters and created efficient communication channels from the Board to Procurement and Capital Works to aid its operations.
Consideration of Proposals
The Board considered 67 proposals in 2016-2017.
Following consultation with the Board during 2016, from 1 January 2017 Procurement and Capital Works introduced a new process for consideration of large Goods and Services procurements which involved a two stage process. The first stage is a presentation to the Board on the proposed strategic approach to the procurement in which directorates outline the procurement options that have been considered to support the strategic objectives, identify strategic risks, discuss opportunities for cross agency collaboration, and application of contract management principles. The second stage is presentation of the final procurement proposal. There were 10 proposals considered under this new process, included in the total 67, at the first stage of the two stage process.
Of the 57 proposals presented for endorsement by the Board, 53 were endorsed in the reporting period. Two proposals were endorsed only after more information was presented to the Board and four proposals were not endorsed with the Board recommending review of the procurement strategies.
Appendix 1 provides a summary of procurement proposals considered by the Board in 2016-17 by type.
An important aspect of the Board’s role in assisting the Territory pursue value for money in its procurement activities is to ensure territory entities are effectively managing risk in their procurement proposals. Procurement proposals presented to the Board must contain a risk plan. Risk plans identify the risks and assess the likelihood and consequence of each risk in order to reach a risk rating. Often the Government has treatments in place (for example, requiring construction consultants and contractors to have and maintain prequalification) that will lower the risk rating. Proponents for procurement proposals must also indicate what other treatments they will provide for each risk rated as high or above and re-assess the likelihood and consequence following that treatment. A risk rated as high following treatment does not mean the treatment is not adequate – sometimes the consequences of the risk occurring would be severe although the likelihood of the event occurring is very small.
Remuneration
Remuneration for non-public employee members of the Board as at 30 June 2017 is set out in the ACT Remuneration Tribunal’s amended Determination 12 of 2016, which commenced on 1 November 2016. This determination set the remuneration for non-public employee Board members at $24,730 per annum.
Public sector members receive no remuneration for their Board membership. All staffing matters in respect of public employee members are managed by their home directorates.
Support Staffing and Financial Resources
Section 21(1) of the Act enables the Board to arrange with the Director-General of the relevant directorate for directorate officers to provide administrative support to the Board. In 2016-17, this was the Chief Minister, Treasury and Economic Development Directorate.
The Board Secretariat supports the Board in undertaking its functions, including management of Board papers, meetings and all general administrative and financial arrangements. The Secretariat was located in Procurement and Capital Works, a business unit within Chief Minister, Treasury and Economic Development Directorate.
Allowances for non-public employee members’ remuneration, Secretariat staff salaries, accommodation and office infrastructure, and the provision of technology and communications services, were covered within Procurement and Capital Works. All associated financial reporting was included in the Chief Minister, Treasury and Economic Development Directorate accounts.
Conflict of Interest
The Board has instituted arrangements to manage conflicts of interest, in recognition that members, during the course of the year, would potentially be faced with potential conflicts of interest due to their other responsibilities.
The Board has instituted the following arrangements:
- members are aware and support the Board’s Charter and have signed a Code of Conduct agreement;
- members are requested to identify whether they have a potential conflict of interest in respect of a proposal or policy matter prior to the related documents being considered. Members with a conflict of interest in a matter are not involved in the decision-making in relation to that matter;
- prior to the commencement of all meetings, members are also invited to state any conflict of interest that may arise due to the business to be considered at the meeting; and
- the minutes of the meeting reflect the identification of any potential conflict(s) of interest and any action taken by the Board in respect of any conflict(s).
Further information on the Government Procurement Board’s operations can be obtained from:
Karen Doran
Chair, ACT Government Procurement Board
+61 2 6207 0337
karen.doran@act.gov.au
Vanessa Althorp
Secretariat Government Procurement Board
+61 2 6207 7352
vanessa.althorp@act.gov.au
Appendix
Summary of Procurement Proposals Considered by the Board in 2016-17
During 2016-17, in accordance with the Government Procurement Regulation 2007, the Board considered 67 presentations and proposals with an estimated total value of $913 million.
Procurement Method | Number | Percentage of Number* | Estimated Value ($M) | Percentage of Value* |
|---|---|---|---|---|
Two Pass Strategic Review | 10 | 15 | N/A | N/A |
Public Tender | 27 | 40 | 567 | 62 |
Variations | 7 | 10 | 24 | 3 |
Select Tender (includes selection from a panel established by public tender) | 9 | 13 | 292 | 32 |
Single Select Tender | 4 | 6 | 28 | 3 |
Presentation | 10 | 15 | N/A | N/A |
Note that some procurement proposals appeared before the Board on more than one occasion. For example, the Expression of Interest (EOI) and Request for Tender (RFT) components of two-stage procurement may be submitted separately for Board consideration.
*Percentages and Estimated Values may not total 100 per cent due to rounding of figures.
Directorate | Number | Percentage of Number* | Estimated Value ($M) | Percentage of Value* |
|---|---|---|---|---|
Chief Minister, Treasury and Economic Development | 20 | 30 | 331 | 36 |
Justice and Community Safety | 1 | 1 | 8.5 | 1 |
Community Services | 6 | 9 | 26 | 3 |
Education | 3 | 4 | 61 | 7 |
Health | 2 | 3 | 21 | 2 |
Transport and City Services | 19 | 28 | 323 | 35 |
Land Development Agency | 9 | 13 | 52 | 6 |
Environmental Planning and Sustainable Development Directorate | 2 | 3 | 67 | 7 |
Asbestos Taskforce | 2 | 3 | NIL | 0 |
Capital Metro Agency | 3 | 4 | 22 | 3 |
*Percentages and Estimated Values may not total 100 per cent due to rounding of figures.
Procurement Classification | Number | Percentage of Number | Estimated Value ($M) | Percentage of Value |
|---|---|---|---|---|
Infrastructure and Capital works | 19 | 33 | 423 | 46 |
Goods and Services (not including ICT) | 38 | 67 | 490 | 54 |
*Percentages and Estimated Values may not total 100 per cent due to rounding of figures.
Abbreviations
Act: Government Procurement Act 2001
ACT: Australian Capital Territory
Board: ACT Government Procurement Board
IT / ICT: Information Technology / Information and Communications Technology
Minister: Minister for Economic Development