Audience
Department-wide
Purpose
This procedure outlines the processes to be followed by all staff when buying goods and services from suppliers external to the department. Note: This procedure also applies to capital works and infrastructure, but excludes real property transactions.
Overview
The Purchasing and procurement procedure details the requirements for conducting purchasing and procurement activities.
This procedure applies to:
- all goods and services purchased from external suppliers funded by departmental or school bank accounts, regardless of the source of those funds e.g. students, parents, fundraising, sponsorship, etc.
- any purchasing and procurement decisions made on behalf of school communities (including those made by the Parent and Citizens’ Associations (P&Cs)).
All departmental purchasing and procurement activities are to be conducted in accordance with the six principles of the Queensland procurement policy to ensure:
- value for money is achieved;
- Queensland’s economic, environmental and social objectives are advanced;
- integrity, probity and accountability are maintained;
- capability in procurement is built;
- savings and benefits are maximised through collaboration; and
- integrated planning and governance build stakeholder and community confidence.
Responsibilities
Director-General
- Assign purchasing or procurement authorities to nominated positions and appropriately trained officers.
Departmental staff
- When sourcing goods and services or managing contracts, staff are required to comply with this procedure.
- Ensure that when participating in any purchasing or procurement activity that they do so with the utmost integrity, probity, and accountability (DoE employees only), and that all decisions are transparent and defensible.
- Ensure that any conflicts of interests are declared, and that those conflicts are appropriately documented and managed in accordance with the Conflict of interest procedure.
- Will not accept any gifts or benefits, regardless of value, offered by suppliers or potential suppliers in connection with a purchasing or procurement activity, including before, during or after the purchasing/procurement process.
- Will not enter into a Sponsorship arrangement in connection with a tendering process, in accordance with the Sponsorship procedure.
- Will not provide any endorsement (see definitions) to an individual, business, company, or supplier regarding any products or services supplied by that individual, business, company or supplier, in accordance with the DoE Standards of Practice.
- Ensure no aspect of an evaluation or any of the offers received are discussed with anyone outside of the applicable evaluation panel, except for where subject matter expertise is required and confidentiality forms have been completed.
- Report any situations of potential fraud, corruption, misconduct or general policy non-compliance in relation to a purchasing or procurement activity, in accordance with Dealing with purchasing and procurement non-compliance (DoE employees only) instructions and the Reporting fraud and corruption procedure.
Purchasing delegates and procurement delegates
The following are in addition to the Department Staff requirements:
- Ensure all activities associated with buying goods and services comply with government and department purchasing and procurement policy (DoE employees only) and procedural requirements.
- Ensure all purchasing activities comply with the Minimum quotation requirements (DoE employees only).
- Ensure all purchasing or procurement documentation is retained to support the purchase or procurement process.
- Ensure that all staff involved (delegates, decision makers and advisors) in purchasing and procurement activities have declared any conflicts of interest, and that those conflicts are appropriately documented and managed in accordance with the department’s Conflict of interest procedure.
- The Purchasing / Procurement Delegate and Financial Delegate must NOT be the same person on the one activity. (using a Corporate card is the only exception to this, as both delegations are exercised at time of payment)
- Report any situations of potential fraud, corruption, misconduct or general policy non-compliance in relation to a purchasing or procurement activity, in accordance with Dealing with purchasing and procurement non-compliance (DoE employees only) instructions and the Reporting fraud and corruption procedure.
- Provide approval of contract extensions or variations, before seeking final approval from the financial delegate.
- Provide advice and guidance on the purchasing or procurement process.
- Endorse/approve and facilitate the purchasing and procurement process according to the Purchasing and procurement delegations (DoE employees only).
- Endorse/approve Alternate Sourcing Strategies according to the Purchasing and procurement delegations (DoE employees only)
Financial delegates
- Approve the expenditure for the supply of goods or services ensuring the goods or services meet an identified need, funds are available, and the purchase is compliant with all relevant legislative requirements and departmental policies including the Appropriate and ethical use of public resources policy.
- Approve, as per the Purchasing and procurement delegations (DoE employees only) the entering into of a contract up to their specified financial delegation (DoE employees only) as contract owner.
- Approve, as per the Purchasing and procurement delegations (DoE employees only) contract extensions or variations (if their position is the original contract signing delegate).
- The Purchasing/Procurement Delegate and Financial Delegate must NOT be the same person on the one activity.
Procurement Services Branch
- Provide advice on purchasing or procurement matters.
- Determine the best strategy and timeframes to meet the purchase outcomes for activities valued over $100,000 (excluding GST).
- Facilitate the procurement process for procurement activities over $100,000 (excluding GST) including the establishment of Supply Arrangements. Endorse/approve and provide assistance with Alternate Sourcing Strategies valued over $20,000 (excluding GST).
- Endorse/approve and provide assistance with Supply Arrangement – Sourcing Strategies, valued over $500,000 (excluding GST).
- Act as the enquiry point for any Department supply arrangement.
Act as an escalation point for any complaints unable to be resolved at the local level.
Process
When purchasing for the Department there are a number of options available. The appropriate option to follow is dependent on the value and type of goods or services required. Use the Flowchart 1 – Which process? to determine the process required, then refer to applicable process instructions for that purchase type.
Which process?
Process for purchasing under a Supply Arrangement (SOA)
Purchasing from a supply arrangement is the Department’s preferred purchasing (sourcing) method.
Where there is a mandatory Department or Queensland Government supply arrangement, it must be used.
Supply Arrangements use established terms and conditions, and in some instances, competitive prices have already been negotiated.
Up to $500,000 (ex GST): A Purchasing Delegate can facilitate the process and a Financial Delegate approves the expenditure (up to the value of their Financial Delegation).
Up to $500,000 (ex GST): an Alternate Sourcing Strategy must be approved when seeking less than the minimum quotes outlined for the specific arrangement (DoE employees only).
Over $500,000 (ex GST): a Procurement Delegate will be required to approve the process and Financial Delegate approves the expenditure – an SOA sourcing strategy (DoE employees only) form must be used to commence this process.
Keep and securely store all related documentation in accordance with the Records management manual(DoE employees only).
This is the process to be followed when purchasing from a Supply Arrangement (Flowchart 6 – Supply arrangement):
Stage 1: Plan (SOA)
- Identify the requirements to be purchased
- Obtain indicative Financial approval to proceed with purchasing activity
- Search for a suitable supply arrangement which offers the goods or services required
- There are three types of arrangements available:
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Department supply arrangements (some arrangements are mandated for use) are established and managed by the department and include applicable department specific requirements, these arrangements MUST be used where possible.
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Whole-of-Government supply arrangements established by other Queensland Government departments for use by all agencies. When accessing these arrangements, purchasers must consider any additional department specific procedures (DoE employees only) relevant to the purchase e.g. are Blue Cards required?
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Other agency arrangements established by other government departments/agencies and require written approval from the respective department/agency prior to use (email the nominated supply arrangement contact listed on specific arrangement page). When accessing these arrangements, purchasers must ensure that it will meet the department’s needs, and that the terms and conditions are suitable.
- If the purchase is valued under $500,000 (ex GST):
- Follow the requirements of the relevant supply arrangement in terms of how to use it (refer the supply arrangement (DoE employees only) page on OnePortal)
- If necessary, identify and manage any risks using the Risk assessment (PF005) (DoE employees only) form
Declare and mange any Conflicts of interest (DoE employees only) in accordance with the department’s Conflict of interest procedure.
OR
- If the purchase is valued over $500,000 (ex GST):
- A procurement delegate will approve the appropriate process to be followed.
Stage 2: Develop (SOA)
- Finalise specification and complete any specific SOA requirements, including associated templates.
If no supply arrangement specific templates are available, complete SOA request for quote form (DoE employees only)
- Seek quotes in accordance with specific supply arrangement instructions, including minimum quotation requirements.
- If the minimum number of quotes cannot be sought, complete an Alternate sourcing strategy (PF006)(DoE employees only) form. An alternate sourcing strategy does not bypass the purchasing process, it only reduces the number of quotes required.
Stage 3: Evaluate (SOA)
- Evaluate quotes (if required) ensuring value for money is achieved using SOA evaluation of quotes form (DoE employees only) (if quotes are required)
- Obtain Purchasing Delegate approval of the evaluation
Stage 4: Finalise (SOA)
- Obtain approval – Financial delegate to approve Purchase Order and to sign any contract or letter of engagement
- Place order in accordance with supply arrangement instructions, ensure the supply arrangement number is referenced on any documentation
- Issue a Purchase Order referencing the supply arrangement number
- Notify unsuccessful suppliers (DoE employees only)
- Ensure all related documentation (all stages) have been securely stored in accordance with the Records management manual (DoE employees only)
Stage 5: Contract management (SOA)
- Monitor the delivery of goods or services
- Receipt goods or service
- Pay invoices
Refer to Purchasing and procurement instructionsand Contract management instructions for further details (DoE employees only).
Process for requesting quotes (Minimum Quote Requirements) (MQR)
When there is no suitable supply arrangement, the Request for Quotation (Minimum quote requirements) (DoE employees only) process must be followed.
Where possible at least one local supplier (DoE employees only) (a supplier with a workforce whose usual place of residency (i.e. where they normally reside) is within a 125 kilometre radius of where the services are to be supplied) should be invited to quote, and consideration is to be given to inviting Indigenous businesses (DoE employees only) (one that is at least 50 per cent owned by an Aboriginal person or Torres Strait Islander person). small to medium enterprises (DoE employees only) (A business employing less than 200 people) and/or Disability enterprises (a not-for-profit organisation that employs people with disabilities) to quote.
When services involve Infrastructure, Building, Construction and Maintenance, including Direct to Market Maintenance the Procurement Services Branch – BCM must be contacted Procurement.BCM@qed.qld.gov.au for correct documentation.
Minimum Quote Requirements – Purchases $0 - $5,000 (ex GST)
For purchases between $0-5,000 (Flowchart 2 – $0 - $5,000), a minimum of 1 quote is required (by phone, in store or online) and 1 evaluator.
Keep and securely store all related documentation (all stages) in accordance with the Records management manual (DoE employees only)
Stage 1: Plan (MQR)
Stage 2: Develop (MQR)
Stage 3: Evaluate (MQR)
- Ensure value for money is being achieved (minimum of One evaluator)
Stage 4: Finalise (MQR)
- Place order
- Ensure all related documentation is kept and securely stored in accordance with the Records management manual(DoE employees only)
Stage 5: Contract Management (MQR)
- Receive / receipt goods or service
- Make payment via Direct Invoice or Corporate Card
Minimum Quote Requirements – Purchases $5,001 - $20,000 (ex GST)
For purchases between $5,001 - $20,000 (Flowchart 3 – $5,001 - $20,000), a minimum of 2 written quotes are required with 2 evaluators over $10,000.
The Request for quote (PF003) form (DoE employees only) must be used
An Evaluation Panel must complete an Evaluation of quotes (PF004) (DoE employees only) form
A Purchasing Delegate must approve the evaluation of quotes
A Financial Delegate must approve the expenditure (to the value of their Financial Delegation)
Contact the Procurement Services Branch (Building Construction Maintenance (BCM)) Procurement.BCM@qed.qld.gov.au for correct documentation if the services involve Infrastructure, Building, Construction and Maintenance services/requirements
Keep and securely store all related documentation (all stages) in accordance with the Records management manual (DoE employees only)
Stage 1: Plan (MQR)
Stage 2: Develop (MQR)
- Consider Queensland Government and department policies (DoE employees only) and Queensland Government priorities (DoE employees only) targets and commitments that may impact the purchase
- Consider the Government’s human rights obligations in relation to delivering services and interacting with the community
- Develop and finalise specification and evaluation criteria
- Complete the Request for quote (PF003) (DoE employees only) form
- If the minimum number of quotes cannot be sought, complete an Alternate sourcing strategy (PF006) (DoE employees only) form
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An alternate sourcing strategy does not bypass the purchasing process, it only reduces the number of quotes required.
- Seek approval from a Purchasing Delegate for an Alternate Sourcing Strategy before seeking quotes
- Seek a minimum of 2 written quotes, or number approved via Alternate Sourcing Strategy
Stage 3: Evaluate (MQR)
Stage 4: Finalise (MQR)
- Place order or award contract (DoE employees only) – Financial delegate, as per Purchasing and Procurement Delegations, is to sign contract or letter of engagement, and/or approve Purchase Order
- Issue a Purchase Order
-
Notify unsuccessful suppliers (DoE employees only)
- Ensure all related documentation (all stages) has been kept and is securely stored in accordance with the Records management manual (DoE employees only)
Stage 5: Contract management (MQR)
- Manage goods or service delivery
- Receipt goods or service
- Pay Invoices
- Manage any complaints
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Contract close-out (DoE employees only)
Refer to Purchasing and procurement instructionsand Contract management instructions for further details (DoE employees only).
Minimum Quote Requirements – Purchases $20,001 - $100,000 (ex GST)
For purchases between $20,001 - $100,000 (Flowchart 4 – $20,001 - $100,000), a minimum of 3 written quotes are required with 2+ evaluators.
The Request for quote (PF003) (DoE employees only) form must be used
An Evaluation Panel must complete an Evaluation of quotes (PF004) (DoE employees only) form
A Purchasing Delegate must approve the evaluation of quotes
A Financial Delegate must approve the expenditure (to the value of their Financial Delegation)
Contact the Procurement Services Branch (Building Construction Maintenance (BCM)) Procurement.BCM@qed.qld.gov.au for correct documentation if the services involve Infrastructure, Building, Construction and Maintenance services/requirements
Keep and securely store all related documentation (all stages) in accordance with the Records management manual (DoE employees only)
Stage 1: Plan (MQR)
- Specify the requirement
- Obtain indicative Financial approval to proceed with purchasing activity
- Use the Purchasing and contract management checklist (PF001) (DoE employees only) form (optional) as a process guide and to assist in documenting the process
- Conduct market research (DoE employees only) to identify potential suppliers to request quote/s from and to estimate the cost of the purchase
- Complete the Risk assessment (PF005) (DoE employees only) form to identify and address any risks
- Declare and manage any Conflict of interest (DoE employees only) in accordance with the department’s Conflict of interest procedure
- Determine evaluation panel members (2+ evaluators) and draft evaluation criteria. The evaluation panel chairperson must be a DoE employee
Stage 2: Develop (MQR)
- Consider Queensland Government and department policies (DoE employees only) and Queensland Government priorities (DoE employees only), targets and commitments that may impact the purchase
- Consider the Government’s human rights obligations in relation to delivering services and interacting with the community.
- Develop and finalise specification and evaluation criteria
- Complete the Request for quote (PF003) (DoE employees only) form
- If the minimum number of quotes cannot be sought, complete an Alternate sourcing strategy (PF006) (DoE employees only) form
-
An alternate sourcing strategy does not bypass the purchasing process, it only reduces the number of quotes required.
- Seek approval from a Procurement Delegate for an Alternate Sourcing Strategy before seeking quotes
- Seek a minimum of 3 written quotes, or number approved via Alternate Sourcing Strategy
Stage 3: Evaluate (MQR)
Stage 4: Finalise (MQR)
- Place order or award contract (DoE employees only) – Financial delegate, as per Purchasing and Procurement Delegations, is to sign contract or letter of engagement, and/or approve Purchase Order
- Issue a Purchase Order
-
Notify unsuccessful suppliers (DoE employees only)
- Ensure all related documentation (all stages) has been kept and is securely stored in accordance with the Records management manual (DoE employees only)
Stage 5: Contract management (MQR)
- Manage goods or service delivery
- Receipt goods or service
- Pay Invoices
- Manage any complaints
-
Contract close-out (DoE employees only)
Refer to Purchasing and procurement instructions and Contract management instructionsfor further details (DoE employees only).
Minimum Quote Requirements – Purchases over $100,000 (ex GST)
If the purchase is over $100,000 (ex GST) and there is no suitable arrangement, the goods or services must be sourced in accordance with the department’s minimum quotation requirements – High value procurement (DoE employees only)
A Request for procurement help (PF008)(DoE employees only) form must be completed to commence the process
Procurement Services Branch will facilitate the purchase
- For general goods and services or ICT related purchases, contact Procurement Services Branch via the Procurement.PSB@qed.qld.gov.au
- For Infrastructure, Building, Construction and Maintenance including Direct to Market Maintenance related purchases, contact Procurement Service Branch, BCM via Procurement.BCM@qed.qld.gov.au
A dedicated procurement specialist will be appointed, to work closely with the purchaser to determine the best strategy, templates and timeframes to meet the purchase outcomes.
3+ evaluators are required
Keep and securely store all related documentation (all stages) in accordance with the Records management manual (DoE employees only)
Process for a Genuine Urgency Situation (GUS)
A genuine urgency situation is when there is a realised or high probability of a health, safety, or security risk which must be rectified within a very limited timeframe.
An Approval of a Genuine Urgency Situation (PF007) form must be used
The appropriate delegate (refer to Purchasing and Procurement Delegations) must approve the PF007 up to the level of their financial delegation.
This is the process to be followed for a Genuine Urgency Situation (Flowchart 5 – Genuine Urgency Situation)
Stage 1: Plan (GUS)
Stage 2: Develop (GUS)
Stage 3: Evaluate (GUS)
- Evaluate the quote to ensure requirements will be met and value for money is being achieved
Stage 4: Finalise (GUS)
- Award Contract – Financial and Purchasing delegate to approve the Purchase Order
- Document the process undertaken, including justification and evidence recorded in retrospect
- Ensure all related documentation is securely stored in accordance with the Records management manual(DoE employees only)
Stage 5: Contract management (GUS)
- Monitor the delivery of goods or services
- Receipt goods or service
- Pay invoices
Process for complaints
If a complaint from a supplier is received, these must be registered and managed in accordance with the department’s Customer complaints management procedure.
Seek resolution at the local area (i.e. through the area managing the purchasing process).
If a complaint is unable to be resolved at the local level, complete the Procurement complaints (PF010) form to refer it to Procurement Services Branch.
Definitions
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Term
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Definition
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Contract management
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Activities associated with monitoring contract obligations, supplier performance and associated risks with a contract.
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Disability enterprise
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A not-for-profit organisation that employs people with disabilities.
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Endorsement
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An endorsement includes but is not limited to testimonials, quotes, comments, videos or recordings. Providing testimonials gives the perception that the department is endorsing a supplier and/or its products or services. The department and all employees of the department must be impartial, and cannot be seen or perceived, to be promoting or favouring an individual supplier.
Providing non-public referee reports to other Queensland Government agencies and providing supplier endorsement for Queensland Government run programmes (e.g. Queensland Supplier Awards) is allowed.
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Financial delegate
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A position-based delegation, obtained when staff are appointed to or relieving in positions as defined in the financial delegation’s matrix.
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Indigenous business
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The Queensland Indigenous Procurement Policy defines an Indigenous business as one that is at least 50 per cent owned by an Aboriginal person or Torres Strait Islander person.
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Local supplier
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The Queensland Procurement Policy defines a local supplier as a supplier with a workforce whose usual place of residency (i.e. where they normally reside) is within a 125-kilometre radius of where the services are to be supplied.
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Purchasing
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Activities associated with buying goods and services up to the value of $100,000 (excluding GST). This may also include buying goods and services valued over $100,000 (excluding GST) when purchased from a department or government supply arrangement.
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Purchasing delegate
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An individual delegation received after completing the applicable training. Purchasing delegations are granted at Low Value up to $5,000 (excluding GST), and Intermediate up to $100,000 (excluding GST). Only Queensland Government Employees can hold a Purchasing delegation.
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Procurement
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Activities associated with sourcing goods and services over the value of $100,000 (excluding GST). This includes the establishment of standing offer, preferred supplier or pre-qualified supplier arrangements.
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Procurement delegate
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An individual delegation obtained when staff have completed the applicable training and are based within Procurement Services or Infrastructure Services Branch. Only Queensland Government Employees can hold a Procurement delegation.
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Procurement Services Branch (PSB)
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The Procurement Services Branch is made up of 4 category groups as follows:
GGS – General Goods and Services
ICT – Information and Communications Technology
BCM – Building, Construction and Maintenance
Capability – Purchasing policy, procedures, delegations and training
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Small to Medium Enterprise
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A business employing less than 200 people.
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Supply arrangements
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Supply arrangements are a list of preselected suppliers capable/qualified to provide goods or services, use established terms and conditions that protect the purchaser, and in some instances, competitive prices have already been negotiated.
Supply arrangements are structured in various ways to best suit the purchasing context and may be a standing offer arrangement, a preferred supplier arrangement or a pre-qualified supplier arrangement.
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Legislation
Delegations/Authorisations
Other resources
Department of Education
Whole of Government
Forms
Supporting documents and procurement related resources
Superseded versions
Previous seven years shown. Minor version updates not included.
7.0 Purchasing and procurement
8.0 Purchasing and procurement
9.0 Purchasing and procurement