The main legislation directly affecting procurement for a wide range of acquiring entities is the Financial Management and Accountability Act 1997 (FMA Act) and the Commonwealth Authorities and Companies Act 1997 (CAC Act).
A key provision of the FMA Act for contracting and contract management is section 44, which requires Chief Executives to promote the efficient, effective, economical and ethical use of the resources for which they are responsible, in a manner that is not inconsistent with the policies of the Commonwealth. The FMA Act also authorises the making of FMA Regulations.3 The Commonwealth Procurement Guidelines (CPGs), the core procurement policy for departments and agencies, are issued by the Finance Minister under FMA Regulation 7.
Section 47A of the CAC Act enables the Finance Minister to issue directions to the directors of CAC Act bodies on matters related to procurement. The CAC Act also authorises the making of regulations for bodies governed by the CAC Act. Relevant CAC Act bodies that are subject to directions issued by the Finance Minister under the CAC Act are listed in Schedule 1 to the CAC Regulations 1997. The Finance Minister's (CAC Act Procurement) Directions 2009 (The Directions) require directors of a relevant CAC Act body to ensure that its officials apply all of the Commonwealth Procurement Guidelines (CPGs) for a covered procurement.4 The Directions also advise relevant CAC Act bodies on how to interpret the CPGs in the context of the CAC Act. They do not require relevant CAC Act bodies to apply any of the CPGs for non-covered procurement.
A summary of relevant legislation, policy requirements and guidance is outlined at Appendix 1.1.
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3 Relevant FMA Regulations are summarised in Appendix 1.1.
4 A covered procurement for relevant CAC Act bodies is a procurement of property or services that is above $400 000 (or $9 million for construction services) and is not specifically exempted under Appendix A of the CPGs.