This lies at the centre of a series of reforms to make it
easier for small and medium businesses to sell to government, simplify
processes, avoid duplication, and consolidate and coordinate
The Digital Transformation Agency (DTA) of Australia has released
the draft of a new ICT Procurement Framework for feedback.
This is in line with Recommendation 1 of the ICT Procurement Taskforce Report —
to guide policy and decision making. The government accepted the 10
recommendations of the ICT
Procurement Taskforce (subject to some minor adjustments).
The Framework will apply to ICT procurement by both
Commonwealth Corporate Entities and Non-Corporate Commonwealth Entities. It
will be available for all Federal, State and local governments to use, for all
categories. It is mandatory for Non-Corporate Commonwealth entities to procure
through coordinated arrangements, where these exist.
A multi-agency team comprising procurement experts from
seven Australian Government agencies worked out of the DTA to develop,
prototype and test the ICT Procurement Framework. The team included people from
the Department of Human Services, Australian Tax Office, Department of Finance,
Department of Home Affairs, Department of Defence, Department of Health and the
The team conducted a series of research sessions to
understand user needs, as well as consultation sessions with multiple agencies
and industry bodies.
It was found that many
government procurement officers view panels
as rigid and lacking flexibility. New players and emerging technologies are
locked out because traditional panels are not set up to bring on new service
categories. The team also found a sentiment that there are too many panels, and
that there is a wide variance in the way panels are managed.
Agencies also said that ICT procurement policy requires
flexibility and wide consultation. There was strong support for increasing the A$80,000
procurement threshold (procurements above the threshold are subject to additional
rules, such as requirement to approach the market), which adds red tape for
buyers and is seen as a barrier to entry for sellers. This threshold forms part
of Australia’s international trade agreements and DTA says that it is a complex
research finding to tackle.
The team found that
agencies are often not making the most out of the flexibility already
built into the Commonwealth Procurement Rules. User research highlighted that
internal Accountable Authority Instructions (AAIs) and operational processes
are seen as restricting procurement practices, but this understanding is often
Agencies said that they would like an ICT procurement ‘One
Stop Shop’ from the DTA that includes guidance, tools and reporting. Agencies
would like the DTA to create an ICT contracting suite for medium value
procurements (targeting SMEs). This could include adding clauses for contractor
poaching, piggybacking and others where appropriate.
There is also support for panel manager forum or ICT
professional’s forum for sharing and collaborating.
The user research showed that ICT procurement is seen as a
profession that needs to be supported at an agency level to invest in the
capability uplift required. This capability has become diluted and has moved
towards more generalist procurement skills. The team found a need for training
and learning opportunities to support the profession.
Two new and two existing policies
The proposed Framework includes a new Fair Criteria Policy, which aims to encourage competition and
support SME participation. It could include considerations around insurance,
limiting liability, security, and separate financial criteria for large
enterprises and SME, where appropriate.
In addition, a new ICT
Consider First Policy has been introduced to make sure all options are
considered before procurement starts. This could include consideration of Cloud
First, Open Standards, Cybersecurity, Shared Platforms, Digital Service
Standards and Commercial Off The Shelf (COTS).
The new focus of an existing ICT Portfolio Panels Policy
will be on encouraging competition and supporting SME participation. This
policy is an update and reinvigoration of the existing policy considering areas
such as refreshable panels and endorsement from DTA.
The Framework includes an evidence-based review of the
existing ICT Capped Term and Value
Policy to determine if the policy is delivering the intended benefits. This
aligns with the taskforce report which recommends regular review and renewal of
the ICT Procurement Framework and Policies.
Improved access to information and tools
The framework includes a range of guidance to make the ICT
procurement process consistent, easier and more efficient. This includes a central
repository for ICT Procurement information, such as departmental guides, guides
to support procurement teams engaging with business and myth busting.
It also includes tools to make ICT Procurement easy, such as
model contracts, centralised registers, platforms, panels, AusTender checklists,
an annual benchmark on prices and decision trees for finding the right
There are also plans for forums for ICT Procurement
professionals to stay in touch across agencies. This would include a range of
virtual and physical forums such as an ICT Procurement Bulletin and potential
new seller and government buyers groups.
According to the Framework, Reporting should focus on data
that can be easily tracked and monitored, that measures both the principles and
the policies. Where data is not available via AusTender, further consultation with
entities will be required to understand if it is possible to obtain this
information and what it would cost agencies to collect in terms of time and resources.
According to DTA, there is work to be done with AusTender to
ensure that the information captured is reliable and holistic. Currently, everything
is not captured on AusTender, and the information is heavily reliant on the
quality of input from agencies.
DTA wants to hear from anyone who will work with this
framework, including people from government agencies – especially those in
procurement – and from industry, especially those that sell ICT to government,
or want to in the future.
A list of questions has been provided for all these
stakeholders, such as asking buyers and sellers to list the List the parts of
the framework that are most important in what they do and what else they might
need from an ICT procurement framework to make an effective procurement decision.
for the framework and the list of questions.
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