Contracting is an integral part of the way the Australian Government conducts business. Contracting activity ranges from straightforward procurements that can be made, for example, using a government credit card or purchase order through to highly complex, innovative long-term projects that may involve a number of inter-connected contracting arrangements. The Australian Government is a significant purchaser of goods and services. These purchases comprise thousands of transactions and involve billions of dollars annually.

The Australian Government has in place a range of legislation and related policies that set out the framework for contracting. This part of the Guide provides a summary of, or a reference to, the legislation and policy that can impact on contracting activities.

In addition to the legislative and policy framework, there are a number of matters that need to be addressed throughout the procurement cycle. These are:

•  managing risks;

•  managing relationships;

•  managing resources;

•  specifying responsibilities;

•  keeping records; and

•  behaving ethically.

Each of these matters is introduced in this part and discussed in more detail, where relevant, in Parts 2 to 6 of the Guide and, together with the phases of the procurement cycle addressed by this Guide, are illustrated in the following diagram.

Contracting is an integral part of the way the Australian Government conducts business.