Explanatory Statement
Revocation of the Commonwealth Procurement Guidelines – January 2005
Issued by the authority of the Minister for Finance and Deregulation
The legislative authority under which the instrument is made
Section 64(1) of the Financial Management and Accountability Act 1997 (FMA Act) enables the regulations to authorise a Minister to issue guidelines to officials on matters within the Minister’s responsibility. Regulation 7(1) of the Financial Management and Accountability Regulations 1997 enables the Finance Minister to issue guidelines (to be called the Commonwealth Procurement Guidelines) about matters relating to the procurement of property and services.
Section 33(3) of the Acts Interpretation Act 1901 confers the power to repeal, rescind, revoke, amend or vary an instrument that has been issued.
Purposes of the instrument
The Minister for Finance and Deregulation released the Commonwealth Procurement Guidelines – December 2008 (2008 CPGs) which was registered on the Federal Register of Legislative Instruments on 28 November 2008.
The 2008 CPGs provided updated guidelines to the Commonwealth Procurement Guidelines – January 2005 (2005 CPGs) on the procurement policy framework along with the Government’s expectations for all departments and agencies subject to the FMA Act when performing procurement related duties.
The 2008 CPGs did not specifically revoke the 2005 CPGs.
As a result, in order to avoid any ambiguity between the 2005 CPGs and 2008 CPGs, the 2005 CPGs are to be revoked.
During the development of the 2008 CPGs, Chief Finance Officers of Australian Government departments and agencies were consulted. Throughout that consultation process agencies were made aware that the 2008 CPGs would replace the 2005 CPGs.
Overview
The instrument, F2009L01639, was enacted to address ambiguity in the procurement guidelines for Commonwealth departments and agencies. The Commonwealth Procurement Guidelines – January 2005 (2005 CPGs) were initially designed to provide a procurement policy framework for entities under the Financial Management and Accountability Act 1997. However, with the release of the updated Commonwealth Procurement Guidelines – December 2008 (2008 CPGs), there was an oversight in explicitly revoking the 2005 CPGs, leading to potential confusion. This revocation aims to clarify the guidelines by removing the older, potentially conflicting, guidelines. The instrument was issued under the authority of the Minister for Finance and Deregulation, utilising powers conferred by Section 64(1) of the Financial Management and Accountability Act 1997, and Section 33(3) of the Acts Interpretation Act 1901. The primary policy objective is to ensure that departments and agencies have a clear, updated framework for their procurement activities, thereby promoting transparency and efficiency in public procurement processes.
Scope and Application
The instrument in question concerns the revocation of the Commonwealth Procurement Guidelines – January 2005. Authorised under Section 64(1) of the Financial Management and Accountability Act 1997 (FMA Act), this revocation aims to eliminate any ambiguity that may arise from the coexistence of the 2005 and 2008 versions of the guidelines. The 2005 guidelines, which were initially intended to provide a framework for procurement activities within Commonwealth departments and agencies, are now superseded by the 2008 guidelines that reflect updated policies and expectations. This revocation applies to all entities subject to the FMA Act, ensuring a uniform approach to procurement practices across the Commonwealth. Notably, the revocation does not alter the fundamental legislative framework but ensures clarity and coherence in the application of procurement guidelines.
The revocation of the 2005 guidelines does not impose new restrictions or expand the scope of the procurement framework but serves to streamline the guidelines in light of subsequent updates. The jurisdictional reach of this instrument is national, affecting all Commonwealth departments and agencies that are bound by the FMA Act. The process of revoking the 2005 guidelines is supported by Section 33(3) of the Acts Interpretation Act 1901, which empowers the revocation of existing instruments to facilitate the implementation of newer policies. No exclusions or exemptions are specified in the instrument, and it does not introduce any new thresholds or conditions beyond the revocation of the outdated guidelines.
Key Provisions
The main operative sections of the instrument focus on revoking the Commonwealth Procurement Guidelines – January 2005 ((section 33(3) Acts Interpretation Act 1901)). The instrument revokes the 2005 guidelines to ensure that there is no confusion or overlap between the 2005 and 2008 versions of the guidelines. By revoking the 2005 guidelines, the 2008 guidelines become the sole authoritative document for procurement-related activities within the Commonwealth.
The Act imposes specific obligations on the parties and entities it governs, primarily ensuring that all departments and agencies subject to the Financial Management and Accountability Act 1997 (FMA Act) adhere to the updated procurement policy framework outlined in the 2008 Commonwealth Procurement Guidelines (2008 CPGs). These guidelines set forth the Government's expectations for procurement-related duties, aiming to streamline processes and enhance accountability. Departments and agencies are required to implement the 2008 CPGs in their procurement activities, ensuring that they comply with the latest policy directives and expectations.
In terms of consequences for non-compliance, the instrument does not explicitly detail specific offences, penalties, or civil/criminal consequences for breaching the revoked 2005 guidelines. However, given that the 2008 CPGs are the current authoritative document, any failure to comply with these updated guidelines could potentially lead to repercussions under the FMA Act. While the specific penalties are not outlined in the instrument, non-compliance could result in disciplinary action, financial penalties, or other administrative measures as prescribed by the FMA Act. The precise consequences would depend on the nature and severity of the non-compliance and the specific provisions of the FMA Act.