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 factors that are important at all stages of the contracting process. These are:

•  managing risks

•  managing relationships

• managing resources

• specifying responsibilities

•  behaving ethically, and

•  keeping records.

Each of these issues is introduced in this Part and discussed in more detail where relevant in Parts 2 to 6 of the Guide. These factors, together with the phases of the procurement cycle addressed by this Guide, are illustrated in Figure 2 below.

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