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Defence Procurement Policy Manual February 2014 Edition

February 2014

The Directorate of Procurement and Contracting Policy and Practice has released Defence Procurement Policy Manual (DPPM) February 2014 Edition and it is effective from 27 February 2014.

The DPPM is the principal reference document for Defence officials conducting procurement. It provides procurement officers, and others involved in the procurement process, with the policy and operational guidance necessary to comply with Commonwealth policy.

DPPM February 2014 consists of the following revised and updated chapters:

  • Simple Procurement Process – This chapter has been amended to reflect:
    • the change to the Commonwealth Procurement Rules  to decrease the relevant procurement threshold for procurements of construction services to $7.5 million (from $9 million) effective 1 January 2014; and
    •  for Defence procurements, consistent with DEFGRAM 657/2013 - Update to Defence Chief Executive Instruction 2.3 and use of the Defence Purchasing Card for Defence procurements:
      • the increase of the mandatory threshold for use of the Defence Procurement Card from $5,000 to $10,000 (except where there are valid reasons for not doing so such as for procurements made through MILIS), and
      • the requirement to have separate Regulation 9 and Section 44 delegates for a  procurement valued at or above $10,000.

  • Chapter 1.2 – Commonwealth Procurement Rules - This chapter has been amended to reflect the change to the Commonwealth Procurement Rules to decrease the relevant procurement threshold for procurements of construction services to $7.5 million (from $9 million) effective 1 January 2014.

  • Chapters 1.4 – Delegations for Procurement - This chapter has been amended for Defence procurements, consistent with DEFGRAM 657/2013 - Update to Defence Chief Executive Instruction 2.3 and use of the Defence Purchasing Card for Defence procurements to reflect:
    • the increase of the mandatory threshold for use of the Defence Procurement Card from $5,000 to $10,000 (except where there are valid reasons for not doing so such as for procurements made through MILIS), and
    • the requirement to have separate Regulation 9 and Section 44 delegates for a  procurement valued at or above $10,000.

  • Chapter 3.4 – Earned Value Management - This chapter has been removed to reflect that as a result of the removal of Payment by Earned Value option from DMO policy/contracts the Earned Value Management (EVM) policy is now purely a project management tool and therefore the EVM policy/information has been moved to reside within the project management area.

  • Chapters 6.2 – Performance Management and Chapter 6.4 – Delivery, Acceptance, Payment and Ownership - These chapters have been updated to reflect the removal of Payment by Earned Value from DMO policy. In addition, references to DMI(PROJ) 11-0-006 Earned Value Management in DMO Contracts have been included.

  • Glossary - This section has been updated and expanded to ensure consistency with the Commonwealth Procurement Rules, Defence and DMO Chief Executive Instructions and other sources of policy.

All other parts of the DPPM remain unchanged from what was previously issued as DPPM November 2013.

DPPM Access
The DPPM is not available in hard copy format and can be accessed below.
DPPM Current Version (PDF) – 491 Pages, approx 3MB

Summary of Updates in DPPM February 2014 Release
A table documenting major policy changes within the February 2014 release update can be accessed here.

Table of Historical DPPM Updates
To assist in identifying the currency of particular DPPM chapters, a table documenting the DPPM chapter update history can be accessed here.

The Directorate of Procurement and Contracting Policy and Practice, Contracting and Legal Division, DMO maintains the DPPM.

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