Update:Queensland Government Procurement

Presentation to DSITI Partners in Technology briefing – August 2016

Department of Housing and Public Works

2015 Review of Queensland Government Procurement

• Queensland Government procures approximately $16B p.a. on goods and services (not including social services procurement)

• Opportunity to use this spending power to enable the State’s future – through jobs, business activity, improved social outcomes and value for money purchasing

• In 2015, the Government committed to a broad ranging review of its procurement practices to ensure that probity, value for money and local content are at the forefront of the State’s procurement policies

• An Interdepartmental Committee (IDC) Procurement led a review process to answer the question “how should procurement be delivered across Queensland Government?”

• Extensively consulted with Agencies and Industry

Queensland Government Procurement 2

216Consultations

with all agencies

20ARG meetings with reps from most agencies

6IDC Directors-

General meetings

29/5Consultations/

Workshops with industry

16Submissions

from agencies

6IDC Directors-

General meetings

16Submissions

from agencies

9Submissions

from industry

Background

Department of Housing and Public WorksDepartment of Housing and Public Works

What did it find?

Industry• Procurement should not be centralised

• Embed probity, value for money and local content when making procurement decisions

• Invest in government staff and build procurement capability

• Certainty over public sector investment and forward procurement pipeline

• Streamline and simplify government procurement processes

Agencies• Guidance on what is value for money

• Increases in staff capability

• Improve systems and reporting

• Governance – clear levels of accountability, roles and responsibilities

• Flexible model to cater for the different requirements and services delivered by agencies

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Queensland Government Procurement 3

Feedback

Department of Housing and Public Works

Where are we now?Where do we need to be?

• Realistic change based on a phased approach. The plan is to transition whole-of-government procurement activities from the current foundation stage to the desired leading maturity level

Maturity

Department of Housing and Public Works

How do we get there?

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Embed agency leadership and ownership of procurement

Enable through a whole-of-government function

Strengthen governance

Improve industry engagement

Increase our procurement capability

Understand and address knowledge and information needs

The Plan

Department of Housing and Public WorksDepartment of Housing and Public Works

How industry feedback has influenced our approach

Industry Feedback

• Procurement should not be centralised

• Embed probity, value for money and local content when making procurement decisions

• Invest in government staff and build procurement capability

• Certainty over public sector investment and forward procurement pipeline

• Streamline and simplify government procurement processes

• Adopting an agency led, centrally enabled procurement model

• QPP review and updated guidance on probity, value for money and local content

• Adopting procurement professional and departmental accreditation frameworks

• Improved forward procurement pipelines across Queensland government spend

• Establishing the PAIG to coordinated industry advice about how we can make it easier to do business with government

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5

4 6

3 4 5

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Planning Implementation

Department of Housing and Public WorksThe future procurement operating model is made up of six core elements, that combined outline how the model works.

What will this look like in practice? Op Model

Department of Housing and Public Works Queensland Government Procurement 8

How can we make sure our efforts are considered, effective and efficient, and that the

right people are involved in key decisions?Governance

Man

age

Per

form

ance

Cat

egor

y G

over

nanc

e

Category Council

Queensland Government Procurement Committee

Stra

tegy

& S

uppo

rt

Gov

erna

nce

CEO Leadership Board

Procurement Industry Advisory Group

Information & Communication

Technology

Building Construction & Maintenance

Social Services

Transport Infrastructure &

Services

General Goods & Services

Medical

Category Council

Category Council

Category Council

Category Council

Category Council

Queensland Government procurement governance model

A tiered governance model that provides strategic oversight and ensures informed, representative decision-making about procurement-related initiatives

Department of Housing and Public Works

What support will be needed to enable effective procurement across the sector, and how can this

help agencies’ focus their effort?Organisation

A functional design of the new whole-of-government procurement function and its interactions with agencies, including the workforce and agency capabilities needed to

support the approach

Department of Housing and Public Works

What needs to happen and how can this be done most effectively?

Process

Key, step-by-step processes needed to deliver on the identified strategy

Department of Housing and Public Works

What will be the keys to achieving our procurement strategy?

Enablers

Elements that provide the insight and information needed for timely decision-making, while managing the risks of the processes (including systems and technology, and procurement

intelligence).

Department of Housing and Public Works

How will we know if we’re being successful and delivering what’s needed?

Performance Management

A suite of whole-of-government procurement performance measures and targets to define and measure progress

Department of Housing and Public Works

What is different?

How is the new operating model different from previous approaches?

While some aspects of the new operating model are likely to be familiar, the new model provides greater clarity about the elements needed for procurement to help deliver great outcomes for Queensland. It also consolidates the most recent feedback from agencies and industry into a comprehensive map for procurement across government.

More specifically, the new model outlines in much greater detail:

• how different parts of government and industry can best work together – this includes outlining the principles of an ‘agency-led, centrally enabled’ approach (with clearly defined roles and relationship between agencies and the central procurement function), as well as focusing on engagement between government and industry;

• the strengthened governance structures needed to oversee procurement activities, including specifying the function and activities of new bodies, how they relate to one another and how frequently they should interact;

• accreditation for procurement professionals and departments to set minimum standards and a capability framework to help agencies meet them; and

• the key enablers for our success, with a particular focus on how procurement knowledge information needs.

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The new approach

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Thank you