Contracting with Defence

Procurement is a core Defence function which makes a vital contribution to departmental and ADF capability. Procurement policy and practice is an important foundation of Defence operations, particularly within the Capability Acquisition and Sustainment Group (CASG).

There is a range of legislation that impacts on Commonwealth procurement, including (but not limited to) the Public Governance, Performance and Accountability (PGPA) Act 2013, the PGPA Rules and the Commonwealth Procurement Rules (CPRs).

Achieving value for money is the core rule of the CPRs.  Officials responsible for a procurement must be satisfied, after reasonable enquires, that the procurement achieves a value for money outcome.  Procurements should:
     a    encourage competition and be non-discriminatory;
     b.   use public resources in an efficient, effective, economical and ethical manner  that is not inconsistent with the policies of the Commonwealth;
     c.   facilitate accountable and transparent decision making;
     d.   encourage appropriate engagement with risks; and
     e.   be commensurate with the scale and scope of the business requirement.

There is also a range of mandatory Commonwealth procurement-connected policies which may impact on procurement, including initiatives such as Indigenous Procurement Policy and Australian Industry Participation.

The development of a mature relationship with industry and the use of sound procurement and contract management principles will assist Defence in achieving superior procurement outcomes. In particular, the savings and other benefits required under Defence's Reform Program and the requirement to deliver capability under the Defence White Paper.

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