Footnotes

Chapter 1

[1]        Journals of the Senate, No. 3, 14 November 2013, p. 128.

[2]        Journals of the Senate, No. 13, 12 February 2014, p. 450.

[3]        Journals of the Senate, No. 37, 26 June 2014, p. 1021.

[4]        Journals of the Senate, No. 40, 9 July 2014, p. 1108.

Chapter 2 - The Commonwealth Procurement Framework

[1]        Paragraphs 2.2 and 2.4 of the Commonwealth Procurement Rules (CPRs), 1 July 2012.

[2]        Paragraph 2.1 of the CPRs, 1 July 2012 and Department of Finance, Submission 12, p. 2. The CPRs issued pursuant to the Financial Management and Accountability Regulations 1997 were a legislative instrument under section 64(3) of the Financial Management and Accountability Act 1997 (FMA Act). See Dr Nick Seddon, Submission 1, p. 2.

[3]        See Forward to the Commonwealth Procurement Rules, July 2014, p. 3; Department of Finance, Submission 12, p. 2.

[4]        Paragraph 2.4 of the CPRs, 1 July 2012; Department of Finance, Submission 12, pp 2-3. Paragraph 2.4 of the CPRs, July 2014, also states that the CPRs are the core of the procurement framework, which also includes web-based guidance, developed by the Department of Finance to assist agencies to implement the procurement framework; and 'Resource Management Guides' which advise of key changes and developments in the procurement framework (these appear to replace the Finance Circulars referred to in the earlier CPRs). The CPRs issued in July 2014 do not refer to Chief Executive Instructions, but rather 'Accountable Authority Instructions' which can be used to set out entity-specific operational rules to ensure compliance with the rules of the procurement framework (paragraph 2.5 of the CPRs, July 2014).

[5]        Department of Finance Submission 12, p. 5. The Certificate of Compliance Report informs the Parliament of the outcomes of the annual Certificate of Compliance process for agencies under the Financial Management and Accountability Act 1997. See www.finance.gov.au/publications/certificate-of-compliance-report/ (accessed 4 April 2014). The committee did not receive evidence on the compliance reporting arrangements which will exist under the PGPA Act. However the committee understands that there is a draft guidance issued, dated 17 June 2014, which outlines proposed requirements for compliance reporting for the 2014-15 year. This is applicable to non-corporate Commonwealth entities, available at: http://www.pmra.finance.gov.au/#ref1 (accessed 7 July 2014).

[6]        Paragraph 3.3 of the CPRs, 1 July 2012. Paragraph 9.7 of the CPRs, July 2014, provide that for non-corporate Commonwealth entities the procurement threshold, other than for procurements of construction services, is $80,000; for prescribed corporate Commonwealth entities the procurement threshold, other than for procurements of construction services, is $400,000.

[7]        Paragraph 4.4 of the CPRs, 1 July 2012.

[8]        Committee Hansard, 21 March 2014, p. 57.

[9]        Paragraph 4.5 of the CPRs, 1 July 2012. Paragraph 4.5 of the CPRs, July 2014, include an additional factor in this list – the quality of goods and services. This additional factor is discussed further in Chapter 4 of the report.

[10]      Paragraph 5.1 of the CPRs, 1 July 2012.

[11]      Paragraph 5.3 of the CPRs, 1 July 2012.

[12]      See Dr Nick Seddon, Submission 1, pp 1-2.

[13]      See Paragraph 2.15 of the CPRs, 1 July 2012. This provision is set out at Paragraph 2.14 of the CPRs, July 2014. Chapter 15 of the Australia-United States Free Trade Agreement (AUSFTA) deals with Government Procurement. In his submission Dr Seddon notes that the CPRs are 'a close copy of Chapter 15 [of the AUSFTA]', Submission 1, pp 1-2.

[14]      Submission 12, p. 3.

[15]      Articles 15.2(1) of the AUSFTA.

[16]      Article 15.2(2) of the AUSFTA.

[17]      Article 15.2(5) of the AUSFTA.

[18]      Article 15.15 of the AUSFTA (Definitions).

[19]      Submission 12, p. 4. These exemptions are contained in Appendix A of the CPRs and reflect exemptions provided for under the AUSFTA.

[20]      Dr Nick Seddon, Submission 1, p. 4. Dr Seddon notes the list in the Defence Procurement Policy Manual (DPPM) copies the list in chapter 15 of the AUSFTA but is presented in the DPPM as determined by the Secretary of Defence and CEO Defence Materiel Organisation as exempt under a general rule in the CPRs, namely paragraph 2.6 of the CPRs. This list is reproduced at Appendix 3.

[21]      Submission 12, p. 4. The CPRs define SMEs as 'an Australian or New Zealand firm with fewer than 200 full-time equivalent employees', see Appendix C (Definitions) of the CPRs, 1 July 2012. The Definitions are in Appendix B of the CPRs, July 2014.

[22]      Section 7 of Chapter 15 of the AUSTFA, General Notes, Schedule of Australia.

[23]      Paragraph 5.4 of the CPRs, 1 July 2012.

[24]      Committee Hansard, 28 April 2014, p. 1.

[25]      Committee Hansard, 28 April 2014, p. 1.

[26]      Committee Hansard, 28 April 2014, p. 2.

[27]      Department of Finance, Submission 12, p. 4. See Paragraph 5.5 of the CPRs, July 2014, which provides that the government is committed to non-corporate Commonwealth entities sourcing at least 10 per cent of procurement by value from SMEs.

[28]      Submission 36, p. 2.

[29]      Submission 36, p. 3. See also Department of Finance, Submission 12, p. 5.

[30]      Submission 12, p. 8.

[31]      Department of Industry website, available at: www.industry.gov.au/industry/AustralianIndustryParticipation/Pages/default.aspx (accessed 23 June 2014).

[32]      Department of Industry, Submission 36, p. 6.

[33]      The targeted industry sectors are: rail; steel; information technology; clean technologies; water; textiles, clothing footwear; food and beverage; and medical and scientific technologies, see Department of Industry website at: www.industry.gov.au/industry/AustralianIndustryParticipation/SupplierAdvocates/Pages/default.aspx (accessed 23 June 2014).

[34]      Department of Industry website, available at: www.industry.gov.au/industry/BuyAustralianatHomeandAbroad/Pages/AbouttheInitiative.aspx (accessed 23 June 2014). Note: Funding for these measures will be discontinued from 31 December 2014. See Senate Economics Committee, Estimates Hansard, 3 June 2014, p. 80. 

[35]      Submission 12, p. 4. AusTender is the Australian Government's procurement information system, see www.tenders.gov.au/ (accessed 22 May 2014).

[36]      Submission 12, p. 4. This data is based on reporting of procurement contracts, valued at $10 000 or greater, on AusTender in 2012-13.

[37]      Submission 12, p 5. In terms of the breakdown of goods and services in the total contracts – goods accounted for 43.8% by value ($17.2 billion); services accounted for 56.2% by value ($22.1 billion); and of the total number of contracts reported, 69.8% were valued below $80,000 equating to 3.7% of the total value of all contracts awarded.

[38]      Committee Hansard, 21 March 2014, pp 57-58.

[39]      Committee Hansard, 21 March 2014, p. 58.

[40]      Paragraph 4.6 of the CPRs, 1 July 2012.

[41]      Paragraphs 4.6 and 4.7 of the CPRs, 1 July 2012.

[42]      Ms Yvette Sims, Department of Finance, Committee Hansard, 21 March 2014, p. 63. A full list of procurement-connected policies, the department responsible for the policies, the year the policy was initiated, the suppliers affected and the threshold applicable to the policy are set out in Appendix 4.

Chapter 3 - Commonwealth procurement and the non-discrimination principle

[1]        Submission 12, p. 3.

[2]        Submission 40, p. 1.

[3]        Submission 2, p. 2.

[4]        Senate Finance and Public Administration Legislation Committee, Additional Estimates Hansard, 24 February 2014, p. 40.

[5]        Committee Hansard, 21 March 2014, p. 5.

[6]        Committee Hansard, 28 April 2014, p. 25.

[7]        John R. Luckey, Legislative Attorney, Domestic Content Legislation: The Buy American Act and Complementary Little Buy American Provisions, 25 April 2012, Congressional Research Service, Summary, p. ii.

[8]        Committee Hansard, 21 March 2014, p. 53.

[9]        Submission 22, p. 7.

[10]      Section 1605 of the American Recovery and Reinvestment Act of 2009.

[11]      Submission 39, p. 11.

[12]      Department of Finance, answers to questions on notice, received 1 April 2014, p. 2.

[13]      Mr John Sheridan, Department of Finance, Committee Hansard, 28 April 2014, p. 41.

[14]      Submission 37, pp 1-2.

[15]      Submission 1, p. 5.

[16]      Submission 1, p. 5.

[17]      Committee Hansard, 28 April 2014, pp 27-28. See also Mr Umit Erturk, Manager, Spear of Fame, Committee Hansard, 28 April 2014, p. 28; Dr Herbert Hermens, Submission 8, p. 2.

[18]      Submission 10, p. 9.

[19]      Committee Hansard, 21 March 2014, p. 53.

[20]      Submission 45, p. 3.

[21]      Submission 26, p. 2.

[22]      Committee Hansard, 21 March 2014, p. 40.

[23]      Submission 44, pp 13-15.

[24]      Committee Hansard, 21 March 2014, pp 4-5.

[25]      Submission 19, p. 4.

[26]      Submission 14, p. 3.

[27]      See for example Ms Michelle Melbourne, Chair, Canberra Business Council, Committee Hansard, 28 April 2014, p. 26; Mr Umit Erturk, Manager, Spear of Fame, Committee Hansard, 28 April 2014, p. 30. See also Australian Information Industry Association, Submission 7, p. 2.

[28]      Committee Hansard, 28 April 2014, p. 18. See also Name Withheld, Submission 15, p. 1.

[29]      Committee Hansard, 28 April 2014, pp 2-3.

[30]      Committee Hansard, 28 April 2014, p. 3.

[31]      Department of Finance, answers to questions on notice, received 1 April 2014, p. 24.

[32]      Committee Hansard, 28 April 2014, p. 48.

[33]      Committee Hansard, 28 April 2014, p. 48.

[34]      Submission 36, p. 6.

[35]      Mr Michael Green, Acting Head, Industry Division, Department of Industry, Committee Hansard, 21 March 2014, p. 58.

[36]      Mr Michael Green, Acting Head, Industry Division, Department of Industry, Committee Hansard, 21 March 2014, p. 58.

[37]      Submission 36, p. 6.

[38]      Committee Hansard, 21 March 2014, p. 58.

[39]      Committee Hansard, 21 March 2014, p. 49.

[40]      Committee Hansard, 28 April 2014, p. 25.

[41]      Committee Hansard, 28 April 2014, p. 25.

[42]      Committee Hansard, 21 March 2014, p. 23.

[43]      Mr Michael Green, Department of Industry, Committee Hansard, 21 March 2014, p. 59.

[44]      Portfolio Budget Statements 2014-15 for the Industry Portfolio, p. 69.

[45]      Portfolio Budget Statements 2014-15 for the Industry Portfolio, pp 54 and 58. The 'Opening up opportunities through Australian Industry Participation' program includes Buy Australian at Home and Abroad and the Australian Industry Participation Authority, see Portfolio Budget Statements 2014-15 for the Industry Portfolio, p. 57.

[46]      Mr Grant Wilson, Acting Australian Industry Participation Authority Australian Industry Participation Branch, Department of Infrastructure, Senate Economics Legislation Committee, Estimates Hansard, 3 June 2014, p. 80.

[47]      Department of Industry, Innovation, Science, Research and Tertiary Education, Innovation Policy Report, March 2013, p. 4.

[48]      See AusIndustry, Enterprise Solutions Program website, www.ausindustry.gov.au/programs/innovation-rd/EnterpriseSolutionsProgram/Pages/default.aspx (accessed 14 May 2014).

[49]      Committee Hansard, 21 March 2014, p. 59.

[50]      Australian Council of Trade Unions, Submission 14, p. 2; Australian Manufacturing Workers' Union, Submission 18, p. 3; Dr Tom Skladizen, National Economic Adviser, Australian Manufacturing Workers' Union, Committee Hansard, 21 March 2014, p. 49.

[51]      See AusIndustry, Enterprise Solutions Program website, www.ausindustry.gov.au/programs/innovation-rd/EnterpriseSolutionsProgram/Pages/default.aspx (accessed 14 May 2014).

[52]      Senate Finance and Public Administration Legislation Committee, Estimates Hansard, 26 May 2014, pp 45-47.

[53]      Ms Michelle Melbourne, Canberra Business Council, Committee Hansard, 28 April 2014, p. 25.

[54]      Budget 2014-15, Budget Paper No. 2, p. 113.

[55]      See http://industry.gov.au/Industry/BuyAustralianatHomeandAbroad/Pages/default.aspx (accessed 27 June 2014)

[56]      See http://industry.gov.au/Industry/AustralianIndustryParticipation/SupplierAdvocates/Pages/default.aspx (accessed 27 June 2014)

[57]      See http://industry.gov.au/industry/AustralianIndustryParticipation/Pages/SupplierAccessToMajorProjects.aspx (accessed 27 June 2014)

[58]      See http://industry.gov.au/industry/AustralianIndustryParticipation/Pages/IndustryCapabilityNetworkLimited.aspx (accessed 27 June 2014)

[59]      Mr John Sheridan, Department of Finance, Committee Hansard, 28 April 2014, p. 48.

Chapter 4 - Achieving value for money in Commonwealth procurement

[1]        Paragraph 3.2 of the CPRs, 1 July 2012. As noted in Chapter 2, references in this report are to the CPRs as they were prior to July 2014. Where significant differences exist between those CPRs and the CPRs introduced in July 2014, these will be noted in the committee's report.

[2]        Paragraph 4.5 of the CPRs, 1 July 2012. The CPRs of July 2014 do not contain the statement that the price of goods and services are not the sole determining factor in assessing value for money. However, paragraphs3.2 and 4.5 of the CPRs, July 2014, state that financial and non-financial costs and benefits must be considered.

[3]        Paragraph 4.4 of the CPRs, 1 July 2012.

[4]        Paragraph 4.4 of the CPRs, 1 July 2012.

[5]        Paragraph 4.5 of the CPRs, 1 July 2012. Paragraph 4.5 of the CPRs, July 2014, includes an additional factor, 'the quality of the goods and services', and a new explanation of 'whole-of-life costs' at paragraph 4.6. These revisions are further discussed later in Chapter 4.

[6]        Submission 31, p. 4.

[7]        Mr John Sheridan, Department of Finance, Committee Hansard, 21 March 2014, p. 57.

[8]        Submission 44, p. 3.

[9]        Submission 17, p. 4.

[10]      Submission 45, p. 2.

[11]      Submission 37, p. 7.

[12]      Ms Tracey Martin, Senior Director, Australian National Audit Office, Committee Hansard, 21 March 2014, p. 14.

[13]      Mr Travis Wacey, National Policy Research Officer, CFMEU, Committee Hansard, 28 April 2014, p. 14.

[14]      Mr Travis Wacey, National Policy Research Officer, CFMEU, Committee Hansard, 28 April 2014, p. 14.

[15]      Submission 10, p. 3

[16]      Mr Steve Chapman, Deputy Auditor-General, Australian National Audit Office, Committee Hansard, 21 March 2014, p. 13.

[17]      Committee Hansard, 21 March 2014, p. 44.

[18]      Committee Hansard, 21 March 2014, p. 52.

[19]      Mr Travis Wacey, National Policy Research Officer, CFMEU, Committee Hansard, 28 April 2014, pp 13-14.

[20]      Committee Hansard, 28 April 2014, p. 6.

[21]      Mr John Sheridan, Department of Finance, Committee Hansard, 21 March 2014, pp 60-61.

[22]      Department of Finance, answers to questions on notice, received 1 April 2014, p. 26.

[23]      Committee Hansard, 28 April 2014, p. 50.

[24]      Committee Hansard, 28 April 2014, p. 50.

[25]      Mr Steve Chapman, Australian National Audit Office, Committee Hansard, 21 March 2014, p. 12.

[26]      Committee Hansard, 21 March 2014, p. 12.

[27]      Committee Hansard, 28 April 2014, p. 23.

[28]      Submission 37, p. 3.  See also Committee Hansard, 21 March 2014, pp 7-8; and www.ojec.com/Directives.aspx (accessed 19 May 2014).

[29]      Committee Hansard, 21 March 2014, p. 10.

[30]      Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC, paragraph 90.

[31]      Mr John Sheridan, Department of Finance, Committee Hansard, 28 April 2014, p. 38.

[32]      Mr John Sheridan, Department of Finance, Committee Hansard, 28 April 2014, p. 47.

[33]      Mr John Sheridan, Department of Finance, Committee Hansard, 21 March 2014, p. 63.

[34]      See Procurement Coordinator Blog, Updating the Commonwealth Procurement Rules, 19 May 2014, available at: www.finance.gov.au/blog/2014/05/19/updating-the-commonwealth-procurement-rules/ (accessed 21 May 2014).

[35]      Paragraphs 4.5 and 4.6 of the CPRs, July 2014.

[36]      Committee Hansard, 21 March 2014, p. 12.

Chapter 5 - Barriers to participation in procurement

[1]        Committee Hansard, 21 March 2014, p. 2.

[2]        Committee Hansard, 21 March 2014, p. 4.

[3]        Committee Hansard, 21 March 2014, pp 19-20.

[4]        Committee Hansard, 21 March 2014, p. 20.

[5]        Committee Hansard, 21 March 2014, p. 21.

[6]        Committee Hansard, 21 March 2014, p. 9.

[7]        Committee Hansard, 21 March 2014, p. 9.

[8]        Committee Hansard, 21 March 2014, p. 13.

[9]        Committee Hansard, 28 April 2014, p. 9.

[10]      Committee Hansard, 28 April 2014, p. 22.

[11]      Submission 7, p. 6.

[12]      Committee Hansard, 21 March 2014, p. 33.

[13]      Committee Hansard, 21 March 2014, p. 59.

[14]      Submission 12, p. 9.

[15]      Committee Hansard, 21 March 2014, p. 58.

[16]      Committee Hansard, 21 March 2014, p. 7.

[17]      Committee Hansard, 21 March 2014, p. 7. Mr Butler raised specific concerns about the interpretation of value for money in the CPRs and these concerns are discussed in Chapter 4.

[18]      Committee Hansard, 21 March 2014, p. 63.

[19]      Committee Hansard, 28 April 2014, p. 38.

[20]      Committee Hansard, 28 April 2014, p. 38.

[21]      See Department of Finance, Selling to the Australian Government, at www.finance.gov.au/procurement/procurement-policy-and-guidance/selling/ (accessed 11 June 2014).

[22]      Committee Hansard, 28 April 2014, p. 38.

[23]      See Department of Finance website, Have your say: The Commonwealth Contracting Suite – Final Comments Please, www.finance.gov.au/blog/2014/05/13/have-your-say-the-commonwealth-contracting-suite-final-comments-please/ (accessed 15 May 2014).

[24]      See Public Management Reform Agenda website, available at: pmra.finance.gov.au (accessed 9 July 2014).

[25]      Submission 44, p. 14.

[26]      Committee Hansard, 21 March 2014, p. 67.

[27]      Committee Hansard, 21 March 2014, p. 67.

[28]      Department of Finance, answers to questions on notice, received 16 May 2014, p. 11.

[29]      See www.finance.gov.au/procurement/procurement-policy-and-guidance/buying/accountability-and-transparency/complaints-handling/principles.html (accessed 23 June 2014).

[30]      Committee Hansard, 21 March 2014, p. 67.

[31]      Committee Hansard, 21 March 2014, p. 68.

[32]      Department of Finance, answers to questions on notice, received 16 May 2014, p. 12.

[33]      Committee Hansard, 21 March 2014, p. 68.

[34]      Committee Hansard, 28 April 2014, p. 39.

[35]      Committee Hansard, 21 March 2014, p. 68.

[36]      Committee Hansard, 21 March 2014, p. 68.

[37]      Committee Hansard, 28 April 2014, p. 8.

[38]      Submission 1, p. 5.

[39]      Submission 1, p. 5.

[40]      Article 15.11(2) of the Australia-United States Free Trade Agreement.

[41]      Committee Hansard, 28 April 2014, p. 5.

[42]      Dr Nick Seddon, answers to questions on notice, received 2 May 2014, p. 2.

[43]      Correspondence from Minister for Trade, Mr Mark Vaile MP, to the United States Trade Representative, the Honourable Robert B. Zoellick, dated 18 May 2004, available at: www.dfat.gov.au/fta/ausfta/final-text/ (accessed 22 May 2014).

[44]      Committee Hansard, 28 April 2014, p. 5.

[45]      Dr Nick Seddon, answers to questions on notice, received 2 May 2014, p. 2.

[46]      Dr Nick Seddon, answers to questions on notice, received 2 May 2014, pp 2-3.

[47]      Dr Nick Seddon, answers to questions on notice, received 2 May 2014, p. 4.

[48]      Dr Nick Seddon, answers to questions on notice, received 2 May 2014, p. 4.

[49]      See paragraphs 4.7 and 4.8 of the CPRs, July 2014.

[50]      A list of the procurement-connected policies is set out at Appendix 4.

[51]      Submission 37, p. 3.

[52]      Submission 37, pp 3-4.

[53]      Committee Hansard, 21 March 2014, p. 63.

[54]      Committee Hansard, 21 March 2014, p. 67

[55]      Committee Hansard, 21 March 2014, p. 67.

[56]      Department of the Environment, Water, Heritage and the Arts, National waste policy: Less waste, more resources (November 2009) at www.environment.gov.au/topics/environment-protection/national-waste-policy (accessed 12 April 2014) and Australian Government, Australian Government ICT Sustainability Plan 2010-2015 (2010) at www.environment.gov.au/resource/australian-government-ict-sustainability-plan-contents (accessed 11 June 2014).

[57]      Committee Hansard, 28 April 2014, p. 32.

[58]      Additional information from Department of Environment relating to the public hearing on 28 April 2014, received 8 May 2014.

[59]      Committee Hansard, 28 April 2014, p. 32.

[60]      See Mr John Sheridan and Ms Jan Mason, Department of Finance, Committee Hansard, 21 March 2014, p. 60.

[61]      Department of the Environment, answers to questions on notice, received 30 May 2014, p. 9.

[62]      Committee Hansard, 21 March 2014, p. 35.

[63]      Committee Hansard, 21 March 2014, pp 35-36.

[64]      Committee Hansard, 21 March 2015, p. 66.

[65]      Committee Hansard, 21 March 2014, p. 34, quoting from Department of the Environment, Sustainable procurement in the Australian government report 2013, p. 3, available at: www.environment.gov.au/resource/sustainable-procurement-australian-government-report-2013 (accessed 5 June 2013).

[66]      Committee Hansard, 21 March 2014, p. 34.

[67]      Committee Hansard, 21 March 2014, p. 38.

[68]      The Report of the National Commission of Audit, Towards Responsible Government – Phase One, Recommendation 59, p. 230.

[69]      Department of Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, 29 May 2014, p. 11.

[70]      Committee Hansard, 28 April 2014, p. 9. This recommendation Mr Butler refers to is contained in the report: The Human Element in Procurement, A Consultancy Report on Training Needs and Career Development, Touche Ross Services in association with John S. Dawson And Associates, J. B. L. Tucker & Associates Pty Ltd and Associate Professor R. B. Molloy, AGPS 1990.

[71]      Committee Hansard, 28 April 2014, p. 9. An MCIPS refers to a person with qualification and training to obtain Full Membership of the Chartered Institute of Purchasing and Supply.

[72]      Committee Hansard, 21 March 2014, p. 2.

[73]      Submission 4, p. 4.

[74]      Submission 4, p. 2.

[75]      Committee Hansard, 28 April 2014, p. 23.

[76]      Committee Hansard, 21 March 2014, p. 15.

[77]      Committee Hansard, 21 March 2014, p. 15.

[78]      Committee Hansard, 28 April 2014, p. 46.

[79]      Submission 4, p. 2.

[80]      Department of Infrastructure and Regional Development, answers to questions on notice, received 2 June 2014, p. 1.

Chapter 6

[1]        There are two options of one year each to extend the SOS Panel, which may be exercised at the discretion of the Department of Finance. See Department of Finance website, Stationery and Office Supplies Panel Arrangement, at www.finance.gov.au/procurement/StationeryandOfficeSupplies.html (accessed 5 May 2014).

[2]        Submission 12, p. 3. There are currently 22 whole-of-government procurement arrangements covering 10 categories of goods and services.

[3]        Department of Finance, Submission 12, supplementary submission 1, p. 11.

[4]        Stationery and office supplies panel arrangement, at www.finance.gov.au/procurement/StationeryandOfficeSupplies.html (accessed 5 May 2014). Use of the SOS panel is mandatory for all non-corporate Commonwealth entities subject to the Public Governance, Performance and Accountability Act 2013 and corporate Commonwealth entities can opt in at any time.

[5]        Department of Finance, Submission 12, supplementary submission 1, p. 5.

[6]        ANAO, Audit Report No 25 2008-09, Green Office Procurement and Sustainable Office Management (2009), p. 58.

[7]        Australian Forest Products Association, Submission 13, p. 3; Australian Paper, Submission 17, p. 4; Construction, Forestry, Mining and Energy Union (CFMEU), Submission 39, p. 14.

[8]        Department of Finance, Submission 12, supplementary submission 1, p. 5.

[9]        Australian Forest Products Association, Submission 13, p. 8; Australian Paper, Submission 17, p. 4; CFMEU, Submission 39, p. 13.

[10]      Submission 13, p. 8.

[11]      Australian Made Campaign, Submission 27, p. 3; CFMEU, Submission 39, p. 20; Mr Travis Wacey, CFMEU, Committee Hansard, 28 April 2014, p. 13; Ms Michelle Melbourne, Canberra Business Council, Committee Hansard, 28 April 2014, p. 24.

[12]      Submission 27, p. 3.

[13]      Submission 27, p. 3.

[14]      Committee Hansard, 21 March 2015, p. 15.

[15]      Submission 40, p. 2.

[16]      Committee Hansard, 28 April 2014, p. 13.

[17]      Committee Hansard, 28 April 2014, p. 13.

[18]      Submission 17, p. 3.

[19]      Committee Hansard, 21 March 2014, p. 40.

[20]      CFMEU, Submission 39, pp 21-23.

[21]      CFMEU, Submission 39, p. 22; see also Mr James Evans, CFMEU, Committee Hansard, 28 April 2014, pp 16-17.

[22]      See Department of Finance, Buying for the Australian Government, at www.finance.gov.au/procurement/procurement-policy-and-guidance/buying/policy-framework/procurement-policies/principles.html (accessed 11 June 2014).

[23]      Department of the Environment, Water, Heritage and the Arts, National waste policy: Less waste, more resources (November 2009) at www.environment.gov.au/topics/environment-protection/national-waste-policy (accessed 12 April 2014) and Australian Government, Australian Government ICT Sustainability Plan 2010-2015 (2010) at www.environment.gov.au/resource/australian-government-ict-sustainability-plan-contents (accessed 11 June 2014).

[24]      National waste policy: Less waste, more resources (November 2009), p. 6.

[25]      Australian Government ICT Sustainability Plan 2010-2015, p. 4.

[26]      Department of Finance, Submission 12, supplementary submission 1, p. 5.

[27]      Australian Government ICT Sustainability Plan 2010-2015, p. 15.

[28]      Australian Government ICT Sustainability Plan 2010-2015, p. 15.

[29]      Submission 13, p. 7.

[30]      Submission 13, p. 7.

[31]      Committee Hansard, 21 March 2014, p. 36.

[32]      Committee Hansard, 21 March 2014, p. 42.

[33]      Committee Hansard, 21 March 2014, p. 36.

[34]      Committee Hansard, 21 March 2014, p. 38.

[35]      Committee Hansard, 21 March 2014, p. 35.

[36]      Committee Hansard, 21 March 2014, p. 35.

[37]      Committee Hansard, 21 March 2014, p. 36.

[38]      Australian Paper, Submission 17, p. 4.

[39]      Committee Hansard, 21 March 2014, p. 41.

[40]      Mr Craig Dunn, Australian Paper, Committee Hansard, 21 March 2014, p. 43.

[41]      Submission 12, supplementary submission 1, p. 9.

[42]      National waste policy: Less waste, more resources (November 2009), p. 9.

[43]      See Department of the Environment, Sustainable procurement guide, 2013, available at: www.environment.gov.au/resource/sustainable-procurement-guide (accessed 5 June 2014).

[44]      Committee Hansard, 28 April 2014, p. 38.

[45]      Committee Hansard, 21 March 2015, p. 34.

[46]      Committee Hansard, 28 April 2014, p. 33.

[47]      Committee Hansard, 28 April 2014, p. 33.

Government senators' minority report

[1]        Note: the FMA and CAC Acts were replaced by the Public Governance, Performance and Accountability Act 2013 from 1 July 2014.

[2]        Department of Finance, Submission 12, p. 3. 

[3]        Mr John Sheridan, Department of Finance, Committee Hansard, 28 April 2014, pp 49-50. See also Mr John Sheridan, Senate Finance and Public Administration Legislation Committee Estimates Hansard, 28 May 2014, p. 76.

[4]        Committee Hansard, 28 April 2014, p. 1.

[5]        Submission 1, p. 5.

[6]        Mr John Sheridan, Department of Finance, Committee Hansard, 28 April 2014, p. 41.

[7]        Minister for Finance, Senator the Hon Mathias Cormann, Senate Finance and Public Administration Legislation Committee Estimates Hansard, 28 May 2014, p. 78.

[8]        Minister for Finance, Senator the Hon Mathias Cormann, Senate Finance and Public Administration Legislation Committee Estimates Hansard, 28 May 2014, p. 78.

[9]        See http://www.dfat.gov.au/fta/kafta/guides/fact-sheet-government-procurement.html

[10]      Submission 12, p. 4.

[11]      Submission 12, p. 4.

[12]      Submission 12, pp 3-4.

[13]      Mr John Sheridan, Department of Finance, Committee Hansard, 21 March 2014, pp 57-58.

[14]      Mr John Sheridan, Department of Finance, Committee Hansard, 21 March 2014, p. 58.

[15]      Commonwealth Procurement Rules, 1 July 2012, paragraph 4.5.

[16]      Mr John Sheridan, Department of Finance, Committee Hansard, 21 March 2014, p. 57.

[17]      Ms Tracey Martin, Senior Director, Australian National Audit Office, Committee Hansard, 21 March 2014, p. 14.

[18]      The Report of the National Commission of Audit, Towards Responsible Government – Phase One, Recommendation 59, p. 228.

[19]      See paragraphs 4.5 and 4.6 of the CPRs, July 2014.

[20]      Ms Tracey Martin, Senior Director, Australian National Audit Office, Committee Hansard, 21 March 2014, p. 14.

[21]      Mr Tony Butler, Committee Hansard, 28 April 2014, p. 9; Professionals Australia, Submission 4, p. 2.

[22]      Mr Steve Chapman, Deputy Audit-General, Committee Hansard, 21 March 2014, p. 15.

[23]      The Report of the National Commission of Audit, Towards Responsible Government – Phase One, Recommendation 59, p. 228.

[24]      Committee Hansard, 21 March 2014 p. 2.

[25]      Committee Hansard, 21 March 2014 p. 4.

[26]      Committee Hansard, 21 March 2014 p. 14

[27]      Mr. Stuart Turnbull. Executive Director, Australian National Audit Office, Committee Hansard, 21 March 2014, p. 15.

[28]      John Sheridan, First Assistant Secretary, Technology and Procurement Division, Business, Procurement and Asset Management, Department of Finance, Committee Hansard, 28 April 2014, p. 50.

[29]      Committee Hansard, 28 April 2014, pp 2-3.

[30]      Committee Hansard, 28 April 2014, p. 3.

[31]      Department of Finance, answers to questions on notice, received 1 April 2014, p. 24.

[32]      Committee Hansard, 28 April 2014, p. 48.

[33]      Committee Hansard, 21 March 2014, p. 63.

[34]      Committee Hansard, 28 April 2014, p. 38.

[35]      Committee Hansard, 28 April 2014, p. 38.

[36]      See Department of Finance, Selling to the Australian Government, at www.finance.gov.au/procurement/procurement-policy-and-guidance/selling/ (accessed 11 June 2014).

[37]      Committee Hansard, 28 April 2014, p. 38.

[38]      Submission 9, pp 9-10.

[39]      Committee Hansard, 21 March 2014, p. 58.

[40]      Department of Finance, answers to questions on notice, received 1 April 2014, p. 24.

[41]      Committee Hansard, 21 March 2014, p. 67.

[42]      See www.finance.gov.au/procurement/procurement-policy-and-guidance/buying/accountability-and-transparency/complaints-handling/principles.html (accessed 23 June 2014).

[43]      Committee Hansard, 21 March 2014, p. 67.

[44]      Committee Hansard, 28 April 2014, p. 39.

[45]      Committee Hansard, 21 March 2014, p. 67.

[46]      See Competition Policy Review website, available at: australiancompetitionlaw.org/reports/2014rootbranch.html#issues (accessed 10 July 2014).

[47]      The Report of the National Commission of Audit, Towards Responsible Government – Phase One, Recommendation 59, p. 228.

[48]      Portfolio Budget Statements 2014-15 for the Industry Portfolio, p. 69.

[49]      Submission 12, supplementary submission 1.

[50]      Submission 40.

[51]      Submission 41.

[52]      Submission 42.

[53]      Submission 46.

[54]      Submission 12, p. 3. There are currently 22 whole-of-government procurement arrangements covering 10 categories of goods and services.

[55]      Submission 12, supplementary submission 1, p. 11.

[56]      Submission 12, supplementary submission 1, p. 3.

[57]      Submission 12, supplementary submission 1, p. 9.

ADDITIONAL COMMENTS

[1]        Defence Minister Johnston, 14 July 2014, Senate Hansard:”I am concerned that the amount of money involved is such that this...might well have gone to an Australian manufacturer.”

[2]        Ms Tracey Martin, Senior Director, Australian National Audit Office, Committee Hansard 21 March 2014, p. 14.

[3]        Trevor Taylor and John Louth, Royal United Services Institute, 20 January 2012: https://www.rusi.org/news/ref:N4F194BF09B370/#.U7Sy6PnEJSh 

[4]        Australian Paper, Submission 17, p. 4.

[5]        Department of Finance, answers to questions on notice, received 1 April 2014, p. 24.

[6]        Committee Hansard, 28 April 2014, p. 48

[7]        Committee Hansard, 21 March 2014, p. 43.

Appendix 3 - Defence Exempt Procurements[1]

[1]        Defence Procurement Policy Manual (DPPM) February 2014 Edition, pp 1.2-1-1.2-2.

Appendix 4 - Procurement-Connected Policies[1]

[1]        Department of Finance, Answers to questions on notice, received 1 April 2014, pp 11-12.