PGPA Act Determination (Coordinated Procurement Contracting Special Account 2018)

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and the Public Service

Public Governance, Performance and Accountability Act 2013

PGPA Act Determination (Coordinated Procurement Contracting Special Account 2018)

Purpose of this determination

This determination is made under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to establish the Coordinated Procurement Contracting Special Account 2018 (the special account) to replace the Coordinated Procurement Contracting Special Account, which will sunset on 1 October 2018.

The special account is being established to continue to enable the Department of Finance (Finance) to facilitate centralised procurement and contracting activities on behalf of the Australian Government and to provide additional transparency of the receipts and payments associated with those activities.  The special account will assist Finance in managing both the procurement processes associated with establishing the whole of government standing offers and the ongoing contract management of those arrangements for all departments and entities subject to the PGPA Act. It will also support Finance undertaking scoping studies and other activities to identify possible future whole of government arrangements.

The current whole of government arrangements which are managed using the special account are:

• Stationery and office supplies;
• Major office machines;
• Enterprise resource planning;
• Master media agency;
• Motor vehicle leasing and fleet management;
• Travel management;
• Air travel;
• Travel accommodation;
• Car rental services; and
• Travel payment cards.

The special account will manage ongoing and newly established whole of government procurement and contracting activities.  These whole of government procurement and contracting activities are not limited to the listed current arrangements.

The operating context of special accounts

A special account may be established, varied or revoked by a determination made by the Minister for Finance and the Public Service under section 78 of the PGPA Act, or by an Act.

A special account is an appropriation mechanism that sets aside amounts within the Consolidated Revenue Fund (CRF) for spending on specified purposes. The purposes of a special account are set out in the establishing determination or Act.

In accordance with section 81 of the Constitution, all revenues or moneys raised or received by the Commonwealth Executive Government form one CRF. Section 83 of the Constitution provides that such money may not be drawn from the Treasury except under an appropriation made by law.

• A special account enables revenues or moneys raised or received to be set aside for the purposes of that special account.
• Payments made for the purposes of a special account are supported by an appropriation in the PGPA Act; subsection 78(4) appropriates the CRF for the purposes of a special account established by a determination, and subsection 80(1) appropriates the CRF for the purposes of a special account established by an Act.

Special account determinations

Special account determinations are legislative instruments for the purposes of the Legislation Act 2003. Special account determinations may be varied or revoked by a subsequent determination being made in accordance with subsection 78(3) of the PGPA Act.

In accordance with subsection 79(3) of the PGPA Act, the Minister for Finance and the Public Service must table a copy of such determinations in each House of the Parliament. Subsection 79(4) of the PGPA Act provides that special account determinations are subject to disallowance by either House of the Parliament. The disallowance period starts on the day a special account determination is tabled in the House and ends on the fifth sitting day after the determination was tabled in that House.

Subsection 79(5) provides that, if neither House passes a resolution to disallow a special account determination, the determination commences on the day immediately after the last day on which it could have been disallowed, or on a later day if specified in the determination. The determination does not specify a later day, so commences on the day mentioned in paragraph 79(5)(a) of the PGPA Act.

Human Rights

A Statement of Compatibility with Human Rights is not required for this determination.  Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires a Statement of Compatibility with Human Rights for all legislative instruments subject to disallowance under section 42 of the Legislation Act 2003. While determinations made or varied under subsections 78(1) or 78(3) of the PGPA Act are subject to disallowance under section 79 of the PGPA Act, subsection 79(2) provides that they are not subject to disallowance under section 42 of the Legislation Act 2003. As such, a Statement of Compatibility with Human Rights is not required.

Consultation

The Australian Government Solicitor and the Department of Finance were consulted in the preparation of this determination.