10 The Committee recommends that, in order to For strategic or complex procurement processes the inclusion of Not supported. limit discretionary decision making, promote qualitative assessment is critical to ensuring for money is achieved by the consistency and safeguard transparency, the Commonwealth. Restriction of value for money assessment to only quantitative guidelines prohibit the use of qualitative measures could result in the inability to consider non-financial differences between assessments across whole tenders. potential suppliers, and result in an inability for potential suppliers to differentiate themselves from the market. This could result in sub-optimal value for money outcomes for the Commonwealth. 14 The Committee recommends that the Not supported. The Government does not support the establishment of a statutory authority, or limiting flexibility within the procurement framework by standardising the Australian Government legislate as a statutory assessment of value for money. authority under the responsibility of the There are already several Australian Government entities advocating in the interests of Minister for Industry, Innovation and Science Australian businesses, including the Australian Industry Participation Authority, the an Australian Industry Advocate to: Australian Small Business and Family Enterprise Ombudsman and the Centre for aid Commonwealth agencies to design • Defence Industry Capability. procurement processes which maximise These entities and Finance will continue to work closely to ensure all Commonwealth benefits to the Australian economy and entities are aware early in procurement processes of obligations to provide full, fair and increase opportunities for SME participation; reasonable opportunity for Australian businesses, including SMEs, to compete for support Australian businesses to access major public projects. • Commonwealth procurement by promoting Australian suppliers are already well represented winning approximately 94% of opportunities and assisting businesses to Commonwealth contracts by number, worth $48.27 billion in 2015-16. promote the economic benefits they can offer; provide independent, transparent and • consistent evaluation of the unique economic benefits offered by different suppliers; guide Commonwealth agencies’ application • of weighted criteria and assessment rubrics to overall procurement evaluations; and monitor suppliers’ delivery of contracted • economic benefits.
10 The Committee recommends that, in order to limit discretionary decision making, promote consistency and safeguard transparency, the guidelines prohibit the use of qualitative assessments across whole tenders. Not supported. For strategic or complex procurement processes the inclusion of qualitative assessment is critical to ensuring for money is achieved by the Commonwealth. Restriction of value for money assessment to only quantitative measures could result in the inability to consider non-financial differences between potential suppliers, and result in an inability for potential suppliers to differentiate themselves from the market. This could result in sub-optimal value for money outcomes for the Commonwealth. 14 The Committee recommends that the Australian Government legislate as a statutory authority under the responsibility of the Minister for Industry, Innovation and Science an Australian Industry Advocate to: • aid Commonwealth agencies to design procurement processes which maximise benefits to the Australian economy and increase opportunities for SME participation; • support Australian businesses to access Commonwealth procurement by promoting opportunities and assisting businesses to promote the economic benefits they can offer; • provide independent, transparent and consistent evaluation of the unique economic benefits offered by different suppliers; • guide Commonwealth agencies’ application of weighted criteria and assessment rubrics to overall procurement evaluations; and • monitor suppliers’ delivery of contracted economic benefits. Not supported. The Government does not support the establishment of a statutory authority, or limiting flexibility within the procurement framework by standardising the assessment of value for money. There are already several Australian Government entities advocating in the interests of Australian businesses, including the Australian Industry Participation Authority, the Australian Small Business and Family Enterprise Ombudsman and the Centre for Defence Industry Capability. These entities and Finance will continue to work closely to ensure all Commonwealth entities are aware early in procurement processes of obligations to provide full, fair and reasonable opportunity for Australian businesses, including SMEs, to compete for major public projects. Australian suppliers are already well represented winning approximately 94% of Commonwealth contracts by number, worth $48.27 billion in 2015-16.
australian-government-response-to-joint-select-committee.docx