Procurement Pitfalls to Avoid
Procurement and contract management practices are increasingly the focus of scrutiny from both Parliament and the Auditor-General. APS reforms are in full swing, and senior leaders are taking the opportunity to assess their procurement portfolios to address gaps and bolster procurement process integrity.
Good procurement and contract management is foundational for public sector agencies in delivering on their mandates. In 2021-22 there were 92,303 contracts published on AusTender with a combined value of $80.8 billion - a huge investment in creating public value, with concomitant risks to be managed.
“Achieving value for money is the core rule of the Commonwealth Procurement Rules as it is critical in ensuring that public resources are used in the most efficient, effective, ethical and economic manner” ~ANAO Procurement Update
Terrace Services are experts in procurement. Our team has delivered complex procurements in the Canberra market for 25 years, and in that time, we have developed a comprehensive and practical understanding of what works well to achieve value and deliver outcomes, right across the procurement lifecycle. From procurement strategy development, through to RFx preparation, evaluation, negotiation and contract management, we get the details right so that our clients are positioned in high-value relationships with their vendors.
Our experience means we know how to avoid procurement pitfalls and traps. Taking a risk-based approach and providing assurance over complex procurements is increasingly important for securing trust with key stakeholders. This is why our team offers a range of assurance services to clients undertaking complex procurements, helping them avoid poor outcomes due to inadequate planning, inefficient contract management, and legislative non-compliance. We can advise on approaches for properly considering cybersecurity implications of contracts, for promoting justifiable decision-making and on negotiating contracts that are adaptable to future operational and strategic changes.
If you are interested in better positioning your agency to achieve value from your strategic procurements, you might like to consider the following approaches:
A procurement assurance program, entailing review of procurement process and controls design, quality assurance and reporting across the procurement lifecycle
Targeted procurement reviews across your portfolio: gateway reviews and procurement health checks
Procurement retrospectives to capture lessons learned and promote continuous improvement
Procurement capability assessment to identify operating model and skill mix changes needed for achievement of value across your procurement portfolio.
These initiatives can be built into your internal governance or internal audit frameworks. Alternatively, if your agency requires assistance, Terrace can provide advice on how to establish these assurance mechanisms, and can conduct these services on your behalf.