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									Purchasing and Procurement

  Procurement Arrangements
  Procurement arrangements such as Standing Offer, Preferred Supplier and Pre-qualified Contractor
  Arrangements that include suitable products and services should be used wherever possible to simplify the
  purchasing and procurement process, and must be used if the use is mandated by the department or the
  Queensland Government.

  Practice Requirements
  1. Purchasing and expenditure approvals are normally provided by separate delegates, however the
     department’s Purchasing Delegations allow expenditure delegates to provide both purchasing and
     expenditure approval to the value of their expenditure delegation when using a departmental or whole-of-
     Government Standing Offer Arrangement.
  2. If an arrangement has been mandated for use, this requirement will be clearly stated on the relevant web
     site and/or user guide. A ‘mandatory’ status can never compel use when the arrangement is not suitable
     or does not meet the business requirement.
  3. Where it would appear that a mandated arrangement is applicable but after consideration is found
     unsuitable or it cannot meet the business requirement, the purchasing/procurement delegate must
     record the reasons why it was not used. The degree of detail is left to the discretion of the delegate but it
     should be sufficient to satisfy any audit review.
  4. Purchases off any procurement arrangement must be in accordance with the operating procedures and
     terms and conditions of the arrangement and all orders must include a text reference to the terms and
     conditions of the arrangement - for example,
  5. “This order is placed in accordance with the terms and conditions of SOA [insert number]”. This is
     essential to ensure that the order is subject to the agreed terms and conditions of supply for that

  Procurement arrangements are published in four principal locations:
  1. Department of Education, Training and Employment’s Standing Offer / Procurement Arrangements
  2. Whole of Government
       Queensland Government Chief Procurement Office (QGCPO)
       Queensland Government Chief Information Office (QGCIO)
  3. Other Agencies
       Queensland Contracts Directory

  Use of Other Agency Arrangements
  Arrangements established by other Government departments/agencies may be used provided written
  agreement is obtained by the purchasing or procurement delegate from the respective department/agency
  prior to the supplier being approached or an order being placed. This may be in the form of an approval
  contained within the operating procedures and/or terms and conditions of the arrangement.

  If there is an ongoing need to access another agency’s arrangement, care is needed to ensure that use of
  the arrangement does not breach the State Procurement Policy requirements. In this respect, a procurement
  delegate should review the other arrangement to ensure that it will meet the department’s needs. Factors for
  consideration may include:
   the degree of consistency between the department and the other agency’s specifications and evaluation
       criteria and weightings
   the prospect for further discounts, especially if the department’s anticipated expenditure will exceed the
       other Agency’s or where there is a bulk order requirement
   the cost of approaching the market as opposed to using the existing arrangement
   suitability of the terms and conditions of offer and contract.

  Uncontrolled copy. Refer to the Department of Education, Training and Employment Policy and Procedure Register at to ensure you have the most current version of this document.              Page 1 of 2
Approve / Vary Procurement Arrangements
Authority to approve or vary a procurement arrangement is prescribed in the department’s Purchasing and
Procurement Delegations and summarised below:


Approve arrangements:
Associate Director-General, Operations
Assistant Director-General, Infrastructure Services
Deputy Director-General, Training and Tertiary Education
Executive Director, Corporate Procurement Branch

Approve arrangement/price variations for SOAs/PSAs:
Category Director, Corporate Procurement Branch
Manager, Infrastructure Procurement and Contract Management Unit
Manager, Capital Projects Unit
Manager, New Schools Unit

Standing Offer Arrangements (SOAs) are established through open tender processes designed to select
the best value for money supplier for a particular resource requirement. SOAs include the terms and
conditions of contract and the prices that will apply when orders are placed. SOAs are normally established
with a single supplier. This means that staff wishing to purchase any of the resources offered under the
arrangement can simply place an order with that supplier subject to the agreed terms and conditions of that
arrangement. All SOAs established by the department or the QGCPO and the QGCIO have dedicated
contract managers who are available to assist staff should any issues arise. SOAs are particularly suited to
resource requirements such as stationery, fuel, air travel, etc. where the department can maximise its
purchasing power by sourcing its requirements through a single provider.

Preferred Supplier Arrangements (PSAs) are similar to SOAs except that pricing has not been specified
and there are usually a couple of suppliers on the arrangement. This means that while all the contractual
requirements have been sorted out in advance, a value for money decision based on competitive pricing still
needs to be made at the time of ordering. PSAs are particularly suited to competitive markets where the
resource requirement is limited in range and the inclusion of a few suppliers will have little effect on the
department’s purchasing power.

Pre-qualified Contractor Arrangements (PQCs) are like PSAs but are more commonly established for
regularly purchased resources where the procurement is complex and/or costly or there is a high degree of
risk or variability in the procurement. These are more suited to professional services such as legal, audit,
construction and certain consultancies. As with PSAs, while all the contractual requirements have been
sorted out in advance, staff will still need to get competitive quotes in accordance with the arrangement or
the department’s Minimum Competitive Offer Process (if the arrangement is silent on this issue).

The benefits of using these arrangements include:
 reduced prices by aggregating buying power to obtain discounts
 improved product quality through consistency in specifications and value adds
 improved contract management and reporting
 improved warranties, standards and other protections
 reduced administrative costs through better ordering and payment systems
 reduced training and maintenance costs through standardisation of products
 improved product /service alignment with departmental operating systems
 improved compliance with departmental and government policies and standards

Uncontrolled copy. Refer to the Department of Education, Training and Employment Policy and Procedure Register at to ensure you have the most current version of this document.              Page 2 of 2

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