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DFAT Procurement Policy

DFAT's Procurement Policy provides for the efficient, effective, economical and ethical delivery of purchasing and procurement activities. Contractual arrangements entered into by the Department are conducted in accordance with the Commonwealth Procurement Rules & other Departmental Policies.

DFAT procurement framework

Procurement conducted by DFAT is governed by a legislative and policy framework comprising:

Value for money

Achieving value for money is a critical consideration for the achievement of DFAT's strategic objectives. It is a requirement under the Public Governance, Performance and Accountability Act (2013) and the Commonwealth Procurement Rules. Building on these requirements DFAT has developed eight Value for Money Principles to guide decision making and maximise the impact of its investments.

List of laws, guidelines and policies

This document provides a List of laws and guidelines of the Commonwealth of Australia that may apply to the delivery of goods and services and a list of guidelines and policies contractors undertaking activities for DFAT must comply:

Aid Adviser Remuneration Framework

The Aid Adviser Remuneration Framework defines DFAT's policies and procedures for determining the remuneration of commercially contracted international aid advisers and outlines requirements for implementing and monitoring these policies.

The Framework ensures that adviser remuneration represents value for money. DFAT staff (and Managing Contractors engaging advisers on DFAT's behalf) must apply the Framework. An Adviser Remuneration Calculator is also available to assist.

Eligibility criteria for contracts

All procurement of goods and services is subject to The Commonwealth Procurement Rules (CPRs), and other relevant legislation and Commonwealth Government policies.

In accordance with the Commonwealth Procurement Rules (CPRs), procurements should be undertaken in a manner that does not discriminate against any potential suppliers on their degree of foreign affiliation or ownership, location or size from tendering. However, in instances where legislation or other government policy is inconsistent with the CPRs, the department is expected to comply with that legislation or policy. This is discussed further below with regard to the Australia Indonesia Partnership for Reconstruction and Development.

Untied aid

On 26 April 2006, the Australian Government's overseas aid program was untied. The untying of aid removes the previous eligibility criteria restrictions and allows organisations to bid for Australian aid program contracts regardless of the basis of their origin.

Australia Indonesia Partnership for Reconstruction and Development (AIPRD)

One exception to the untying principle are tenders for AIPRD contracts where government policy dictates that tendering is restricted to Australian, New Zealand and Indonesian suppliers. An Indonesian firm is defined as an entity carrying on business in Indonesia, established in accordance with Indonesian laws and regulations, which, in the case of an incorporated company, has majority Indonesian local ownership/shareholding.

Such activities where tendering is restricted will be clearly identified in the relevant request for tender documentation.

Debrief policy

The Commonwealth Procurement Rules require that Commonwealth agencies promptly inform all suppliers that have submitted tenders of the tender decision and, on request, provide unsuccessful suppliers with the reasons their submission was not successful.

Debriefs can be requested by contracting the contact point identified in the tender.

Complaints Handling Policy

DFAT manages procurement complaints in accordance with its Guideline: Complaints Handling in Procurement.

Policy When Suppliers are Investigated or Sanctioned by Multilateral Development Banks or Other Aid Donors

This document sets out DFAT's policy in relation to current and future procurement processes and existing contracts or agreements (Agreements) when DFAT is notified, or ascertains, that a potential supplier (Organisation) has become subject to investigation, suspension, proceedings or sanction by a Multilateral Development Bank (MDB) or by another aid donor.

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