Panels and standing offers

Many acquiring entities have arrangements (or access to another entities' standing offer or panel) with panels of contractors for the provision of goods or services required on a regular basis, but where the timing and quantities cannot be predetermined. A panel is defined as an arrangement under which a number of suppliers, usually selected through a single procurement process, may each supply property or services to an agency (or agencies where it is intended that a number of agencies will access the panel arrangements). A panel may be established by an agency by entering into contracts or deeds of standing offer (DoSO) for the provision of identified property or services.

A DoSO contains the terms and conditions (including an indicative or set price or rate) that will apply when the goods or services are purchased in the period of the panel arrangement. Agencies then enter into contracts, usually via work orders under the DoSO with individual panel members each time they purchase goods or services. A DoSO can be held with a single contractor or a panel of contractors. They help ensure the entity has quick and easy access to goods and services without having to go through the requirements of a tender process for every acquisition. Some common examples of goods and services acquired under standing offers include: stationery, office and printing supplies or services, recruitment services, professional services, and building maintenance.

For each panel procurement, agencies need to ensure there is sufficient documentation to provide an understanding of the reasons for the procurement, the process that was followed and all relevant decisions, including approvals and authorisations, and the basis of those decisions. In the context of a panel procurement, agencies should therefore document how a procurement made under a panel arrangement achieves value for money. This can be done by clearly outlining the reasons for selecting the particular panel supplier. Such documentation need not be onerous, and could briefly address factors such as the supplier's fitness for purpose, their performance history, their availability to complete the services in the required timeframe, and their pricing relative to other panel suppliers.

Many acquiring entities have their own detailed policies on how to establish and manage standing offers and panels. The Commonwealth Procurement Guidelines (CPGsrequire, among other things, that panel arrangements must contain minimum requirements, usually including an indicative or set price or rate as appropriate for the property or services to be procured. Part Four of this Guide addresses the key issues and considerations for entities when managing panel arrangements.

Examples of goods and services acquired under standing offers include: stationery, office and printing supplies or services, recruitment services, professional services, and building maintenance.