A recent report presented by the ACT Auditor-General says the ACT Government Procurement Board is not functioning optimally despite fulfilling its statutory obligations to review and advise on proposals.
Canberra Weekly reported, that the Board’s effectiveness and efficiency were reported as compromised due to a lack of clarity regarding its primary role and the insufficiently rigorous review and advice provided for higher-risk procurement proposals.
“The Board is not optimally effective or efficient in fulfilling its functions,” the report said.
“Its effectiveness is compromised by a lack of clarity about what its primary role is, and by its insufficiently challenging review of, and advice for, higher risk procurement proposals.”
In the period from 2017 to 2022, the audit examined 411 proposals and conducted detailed case studies on three specific instances: the procurement of linear accelerators by Canberra Health Services, the supply of asphalt by Roads ACT, and the $8.78 million contracts for organisational transformation services at the Canberra Institute of Technology.
The Government Procurement Board was established in 2001 under the Government Procurement Regulation 2007 and the Government Procurement Act 2001 (Act).
The audit found that the procurement process suffered from inefficiency caused by redundant work on low-risk proposals involving multiple entities, including the Board, Procurement ACT, and Major Projects Canberra. To improve effectiveness and minimize costs, the report suggested that the Board should focus on reviewing fewer but higher-risk procurement proposals.
Furthermore, the Government Procurement Act 2001 and Government Procurement Regulation 2007 also constrained the Board’s effectiveness.
As part of its recommendations, the report proposed granting the Board greater independence, providing it with explicit authority to advise, approve, and issue directions, and refining its focus on specific proposals and relevant matters during the review process. Implementing these changes could enhance the Board’s performance and overall contribution to the procurement process in the future.
A total of 16 recommendations were made in the report, one of which suggested “the Government should clearly articulate the Board’s purpose.”
A spokesperson from the ACT Government told Canberra Weekly the report’s recommendations would be considered.
“The Government notes the report acknowledges the substantial procurement reform program already underway, and legislation is proposed to be introduced to amend the Government Procurement Act later this year.
“Implementing recommendations from the report as part of this legislative process will be considered,” the spokesperson told the publication.
