Government procurement inquiry aims to stop agencies cutting corners

Commonwealth agencies which cut corners on procurement rules to “make life easier for themselves” will face scrutiny in a new inquiry set up to examine how procurement rules and guidelines are implemented across the Australian Public Service.

The Joint Committee of Public Accounts and Audit (JCPAA) will conduct an inquiry considering how to bring more transparency, efficiency, and value for money to government procurement.

Inquiry chair Julian Hill pointed to one audit report after another which demonstrated Commonwealth agencies had continued to fail to meet the “letter and spirit” of procurement rules.

“The procurement rules are to ensure value for money as well as encourage competition, efficiency and accountability in the expenditure of public money,” Hill said in a statement.

“There appears [to be] a concerning pattern of agencies cutting corners or interpreting the rules to suit themselves and make life easier for themselves, rather than apply the rules and let more people and firms bid for Commonwealth work,” he said.

The inquiry will examine five recent ANAO reviews into Commonwealth procurement between 2021 and 2023. The audits expose procurement issues encountered in Industry, Science, Energy and Resources; Defence; Home Affairs; the Digital Transformation Authority (DTA); and the National Capital Authority (NCA).

The committee will examine everything from defence patrol boats to finding delivery partners for an industry-focused entrepreneurs’ program. The procurement of ICT-related services will also get a look-in.

Hill said an ongoing challenge for the government was to ensure efficient, effective, economical and ethical procurement practices.

“The committee hopes to identify how Commonwealth procurement practices can be improved to deliver better value for money for Australian taxpayers,” he said.

The inquiry will accept submissions from interested stakeholders until Friday, 11 November 2022.

This article was first published by The Mandarin.