Talks about what free trade means to Defence

The Australia-United States Free Trade Agreement impacts on Defence’s procurement.

A SERIES of presentations are being held for Air Force personnel to understand how Defence procurement is affected by the Australia-United States Free Trade Agreement (AUSFTA).

Arguably the most significant Free Trade Agreement in Australia’s history, the new procurement framework that Defence now operates under is aimed at ensuring effective competition is achieved through non-discrimination in procurement processes.

According to Tony Halberg, Director of Contracting Policy in the Defence Materiel Organisation’s General Counsel Division, the new Government procurement framework has far-reaching implications for Defence procurement activities.

“It is vitally important that all purchasing officers and those involved in procurement are familiar with the new framework and practices,” Mr Halberg said.

The information sessions will complement those conducted late last year. “Last year our presentations focussed on the Free Trade Agreement and how we thought the new procurement framework might look.

We are now in a position to provide advice on how Defence policy has changed,” Mr Halberg said.

He strongly recommended that all personnel involved in procurement attend the presentations, which are being held until March. Specific dates, times and venue details for the second series of presentations has been published on the intranet web site http://intranet.defence.gov.au/dmoweb/sites/ausfta/.

This web site also has other relevant information and links for personnel to understand the change. Value for money remains the core principle underpinning Government procurement, however a range of additional measures have been introduced to improve transparency and accountability.

Perhaps the most significant addition to the procurement framework is the introduction of the concept of “covered procurement”.

A covered procurement is defined as a procurement that is valued at $80,000 or more for goods and services (other than construction services) or $6,000,000 for construction services, and which is not subject to defined exemptions.

If an agency undertakes a covered procurement then the mandatory procurement procedures outlined in the Commonwealth Procurement Guidelines must be followed.

The primary reference for Defence procurement policy is the Defence Procurement Policy Manual and this has now been updated to version 5.5 to incorporate the requirements of the Commonwealth Procurement Guidelines.

The manual is available electronically via the intranet at http://intranet.defence.gov.au/dmoweb/sites/cpo. Personnel can direct questions regarding the new procurement framework to the Contracting Policy and Operations help desk on 1800 100 605 or via email at contracting@defence.gov.au.

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