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Slide Notes

This presentation was made to the Canberra chapter of the Chartered Institute of Procurement and Supply luncheon on 24 November 2015. In it, I briefly explore the current state of procurement in the Australian Public Service and consider how we might approach improvements.

Procurement Professionalism

A presentation to the Canberra CIPS branch on 24 Nov 15 regarding the development of procurement professionalism in the Australian Public Service

PRESENTATION OUTLINE

ARE WE READY?

PROCUREMENT PROFESSIONALISM IN THE APS
This presentation was made to the Canberra chapter of the Chartered Institute of Procurement and Supply luncheon on 24 November 2015. In it, I briefly explore the current state of procurement in the Australian Public Service and consider how we might approach improvements.
Photo by pixbymaia

A profession is a vocation founded upon specialised educational training, the purpose of which is to supply disinterested objective counsel and service to others, for a direct and definite compensation, wholly apart from expectation of other business gain.

The next two slides are drawn from the Wikipedia definition of a profession.

A profession arises when any trade or occupation transforms itself through "the development of formal qualifications based upon education, apprenticeship, and examinations, the emergence of regulatory bodies with powers to admit and discipline members, and some degree of monopoly rights.

ANNUAL FACTS & FIGURES

  • $50 billion
  • 60,000+ contracts
  • 60% #, 30% $ to SMEs
  • 30% #, 10% $ to small bus.
  • 21% #, 6% $ in panels
  • ~1000 contracts > $5m (80% $,
  • ~70%
These are annual average figures for Federal government procurement.
Photo by Chi King

WHAT'S WRONG?

  • Speed?
  • Complexity?
  • Red tape?
  • Over-specification?
  • Probity?
  • Cost?
These are common concerns we hear from both agencies and vendors about procurement.
Photo by karlequin

BELCHER: RED TAPE

  • Simplify AAIs
  • Review remaining PCPs
  • Templates for > $200,000
  • AusTender thresholds & compliance
  • ICT coordinated procurement and panels
Barbara Belcher's recently released report into internal red tape in the Australian Public Service made recommendations for us to improve in these areas.

PROCUREMENT SKILLS

  • Finance (Costing)
  • Supply base analysis
  • Risk analysis
  • Contract selection & legal
  • Negotiation skills
  • Customer/client mngt
  • Contract mngt
  • Supply chain analysis
  • Procurement process mngt
This is one, of a number, of sets of skills needed by procurement officers.
Photo by Pedro Vezini

PROCUREMENT CLASSES

  • Purchasing
  • Uncovered procurement
  • Open ATM
  • Panels
  • Collaborative procurement
  • Coordinated procurement
  • Large, complex procurement
These are the different classes of procurement conducted across the Commonwealth, in increasing order of complexity.
Photo by Roo Reynolds

Professional: In some cultures, the term is used as shorthand to describe a particular social stratum of well-educated workers who enjoy considerable work autonomy and who are commonly engaged in creative and intellectually challenging work.

This is the Wikipedia definition of a professional

A (NEW) MODEL

My (new) model looks at what is required for each class of procurement and considers a health based analogy.
Photo by Roo Reynolds

PURCHASING FIRST AID

The vast majority of procurement can be conducted by normal public servant armed with the right tools and with a modicum of training.

PROCUREMENT GP

RULES, GUIDELINES, TEMPLATES, ASSISTANCE, ADVICE
Some procurement, and the tools and training delivered for purchasing first aid will need to be delivered by qualified and experienced procurement officials. Rules etc should be kept simple.
Photo by pixbymaia

COMPLEX SURGERY

GETTING THE BIG THINGS RIGHT
There will always be large complex procurements that need to be conducted by well qualified and experienced teams of specialists. Many of these will be in Defence. But there won't be more than 1000 or so a year.
Photo by DarthNick

QUESTIONS?

DO YOU AGREE?
Any questions/discussion?
Photo by Cellblog1138