Procurement and contract advisory units

The way entities corporately manage their procurement responsibilities, including the management of contracts, will naturally vary to suit their particular circumstances. Nevertheless, a common approach is for entities to establish dedicated procurement and contract advisory work areas that have responsibility for activities such as:

  developing and maintaining the entity's procurement and contracting policies and procedures and disseminating these to those involved in procurement activities, including the management of contracts;

  providing training and ongoing advice and assistance on procurement and contract management matters;

  monitoring contract activity and encouraging better practices;

  managing the entity's contract register; and

  preparing reports for internal and external audiences.

As noted elsewhere in this Guide, there are an increasing number of legislative and policy considerations that impact on an entity's procurement and contract management responsibilities and entities should give careful consideration to the role that procurement and contract advisory units have in assisting entities meet these responsibilities. It is likely that the role of these units will change and evolve overtime, in line with the entities' procurement and contracting experiences. Some entities see benefit in providing their procurement and contract advisory unit with the authority to review and approve various procurement processes, including the entering into contracts and management of strategic or complex contracts, while the units of other entities have an advisory role. The factors that will impact on an entity's decision in this regard include:

  the nature, complexity and risk profile of entities' procurement activity;

•  the organisational and geographical spread of the entity;

  the level of procurement and contract management expertise among entity staff; and

•  the entity's general approach to the management of corporate activities.