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.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted by the Australian Parliament to ensure that public governance in the Australian Government sector is effective, efficient, economical, and economical. This Act aims to address gaps in the management and accountability of public resources by providing a framework for the financial management and reporting of Commonwealth entities. The PGPA Act Determination (Coordinated Procurement Contracting Special Account 2018) was made by the Minister for Finance and the Public Service under subsection 78(1) of the PGPA Act to establish the Coordinated Procurement Contracting Special Account 2018. This special account replaces the previous one that was set to expire on 1 October 2018. The purpose of this special account is to facilitate centralised procurement and contracting activities on behalf of the Australian Government, ensuring transparency in the receipts and payments associated with these activities. This account will assist the Department of Finance in managing procurement processes and ongoing contract management for all departments and entities subject to the PGPA Act, as well as supporting activities to identify potential future whole of government arrangements.
Scope and Application
The PGPA Act Determination (Coordinated Procurement Contracting Special Account 2018) pertains to the establishment of a special account within the Commonwealth's Consolidated Revenue Fund, managed by the Department of Finance, to facilitate centralised procurement and contracting activities on behalf of the Australian Government. This account applies to all departments and entities subject to the Public Governance, Performance and Accountability Act 2013, and it is designed to enhance transparency of the financial transactions associated with centralised procurement. The special account supports ongoing and future whole of government procurement arrangements, including but not limited to the current activities such as stationery and office supplies, major office machines, and various travel services. The determination is subject to disallowance by either House of the Parliament, and it does not require a Statement of Compatibility with Human Rights as it is not subject to disallowance under section 42 of the Legislation Act 2003.
Key Provisions
The main operative sections of the determination establish the Coordinated Procurement Contracting Special Account 2018 under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) (subsection 78(1)). This special account replaces the existing Coordinated Procurement Contracting Special Account, which was set to sunset on 1 October 2018 (paragraph 1). The new special account aims to facilitate centralised procurement and contracting activities on behalf of the Australian Government, enhancing transparency of the receipts and payments associated with these activities (paragraph 2). It will manage both the procurement processes of establishing whole of government standing offers and the ongoing contract management for all departments and entities subject to the PGPA Act (paragraph 3). The special account will also support the Department of Finance in activities such as scoping studies to identify possible future whole of government arrangements (paragraph 4).
The obligations and requirements imposed by the Act on the parties and entities governed by this determination include the establishment of a special account to manage specific procurement and contracting activities (subsection 78(1)). The Department of Finance is tasked with facilitating centralised procurement and contracting activities on behalf of the Australian Government (paragraph 2). This involves managing the procurement processes of establishing whole of government standing offers and the ongoing contract management of those arrangements for all departments and entities subject to the PGPA Act (paragraph 3). The special account will also support activities such as scoping studies to identify possible future whole of government arrangements (paragraph 4). The determination is subject to disallowance by either House of the Parliament, with the disallowance period starting on the day the determination is tabled and ending on the fifth sitting day after the determination was tabled in that House (subsection 79(4) and (5)).
The determination does not specify any offences, penalties, or civil/criminal consequences for breach. However, the disallowance process outlined in the PGPA Act (subsection 79(4) and (5)) provides a mechanism for parliamentary scrutiny and potential revocation of the determination if it is deemed inappropriate. The special account determinations are legislative instruments for the purposes of the Legislation Act 2003, and the Minister for Finance and the Public Service must table a copy of such determinations in each House of the Parliament (subsection 79(3)). If neither House passes a resolution to disallow a special account determination, it 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 (subsection 79(5)).