Managing cooperative panel arrangements-additional considerations

A cooperative panel arrangement includes an entity accessing another entity's established panel arrangement (described as piggy-backing) or where a group of entities have jointly established the panel arrangement (described as clustering).96

When considering requests from other entities to use an existing panel arrangement, the panel manager should ensure that the panel's request documentation and standing offer allow for additional entities to access the panel (and that suppliers agree to this, where required). Also, the manager should ensure that the additional use by the entity is within the scope of the existing panel arrangement. Where access is granted, the roles and responsibilities of each entity need to be agreed, including such things as how the added entity will access the panel, how the panel will be administered with regard to payment and any reporting requirements, and how feedback to the suppliers will be managed. A common practice adopted by entities is to confirm the agreed arrangements in writing, such as through a Memorandum of Understanding (MOU).

In cases where the panel arrangement has been established by a group or cluster of entities, it is good practice to have a lead entity actively manage the panel arrangement. The role and responsibilities of the lead entity in managing the arrangement should be clearly defined and communicated to both the entities and suppliers so that all parties know and understand the panel procedures. Panel procedures should reflect consideration of any fees to be charged to participating entities for accessing and using the panel, processes for the placement of orders, payment and reporting, responsibilities and arrangements for ensuring communication between the parties, for example, the communication of changes to the panel arrangement and dealing with suppliers and entity feedback, and panel monitoring and review arrangements, including entity and supplier obligations.

In cases where the panel arrangement has been established by a group or cluster of entities, it is good practice to have a lead entity actively manage the panel arrangement.




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96  For further guidance on cooperative procurement, refer to the Department of Finance and Deregulation website, <http://www.finance.gov.au/procurement/>Cooperative Agency Procurement guide.