Purchasing

Businesses within the department are responsible for their own purchasing activities. Purchasing activities, however, are subject to the provisions of the Chief Executive’s Instruction (CEI) relating to procurement.

The CEI provides policies and guidelines that complement the Commonwealth Procurement Guidelines and purchasing related policies, including promoting the purchase of goods and services from Australian and New Zealand small-to-medium businesses.

The procurement CEI establishes three thresholds for purchases: under $2000, between $2000 - $100 000, and over $100 000. Purchases up to $100 000 can be made through the department’s electronic procurement systems, preferred supplier arrangements, oral or written quotations, or more formal processes where appropriate. Purchases over

$100 000 are subject to public tender, although exemptions may be approved under certain circumstances.

The CEI has a checklist to ensure that those involved in purchasing follow a process that covers all issues needing to be considered. The list includes scoping, developing specifications, advertising, evaluating tenders, contract preparation and monitoring.