The Resource Management Framework consists of the legislation and policy governing the management of the Commonwealth's resources.
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) underpins the Resource Management Framework.
Under the PGPA Act, the accountable authority of an entity must govern the entity in a way that promotes the proper use and management of public resources for which the authority is responsible (PGPA Act section 26). 'Proper' is defined as efficient, effective, economical and ethical (PGPA Act section 8). One of the ways accountable authorities may address this requirement is by issuing accountable authority instructions to officials(PGPA Act section 110).
Accountable authorities are also able to enter, vary and administer arrangements (which include contracts, agreements, deeds and understandings) relating to the affairs of their entity(PGPA Act section 23(1)). The accountable authority is able to delegate this power to officials.
The PGPA Act also imposes a number of general duties on officials, including a duty of care and diligence and a duty to act honestly, in good faith and for a proper purpose (PGPA Act section 26).When exercising powers delegated to them, and performing their functions and duties, officials need to ensure they are complying with these general duties, as well as any directions accompanying delegations and applicable accountable authority instructions.
These requirements will all be relevant to officials with responsibility for contract management.