David Braithwaite, Program Director - Implementation, Office of the Chief Advisor, Queensland Government Procurement

1. Update:
Queensland Government Procurement
Presentation to DSITI Partners in Technology briefing – August 2016

2. Department of Housing and Public Works
2015 Review of Queensland
Government Procurement
• Queensland Government procures approximately $16B p.a. on goods
and services (not including social services procurement)
• Opportunity to use this spending power to enable the State’s future –
through jobs, business activity, improved social outcomes and value for
money purchasing
• In 2015, the Government committed to a broad ranging review of its
procurement practices to ensure that probity, value for money and
local content are at the forefront of the State’s procurement policies
• An Interdepartmental Committee (IDC) Procurement led a review
process to answer the question “how should procurement be delivered
across Queensland Government?”
• Extensively consulted with Agencies and Industry
Queensland Government Procurement 2
216
Consultations
with all agencies
20
ARG meetings
with reps from
most agencies
6
IDC Directors-
General
meetings
29/5
Consultations/
Workshops with
industry
16
Submissions
from agencies
6
IDC Directors-
General
meetings
16
Submissions
from agencies
9
Submissions
from industry
Background

3. Department of Housing and Public WorksDepartment of Housing and Public Works
What did it find?
Industry
• Procurement should not be centralised
• Embed probity, value for money and local content when making
procurement decisions
• Invest in government staff and build procurement capability
• Certainty over public sector investment and forward procurement
pipeline
• Streamline and simplify government procurement processes
Agencies
• Guidance on what is value for money
• Increases in staff capability
• Improve systems and reporting
• Governance – clear levels of accountability, roles and
responsibilities
• Flexible model to cater for the different requirements and services
delivered by agencies
Queensland Government Procurement 3
Feedback

4. Department of Housing and Public Works
Where are we now?
Where do we need to be?
• Realistic change based on a phased approach. The plan is to transition whole-of-government procurement activities from the current
foundation stage to the desired leading maturity level
Maturity

5. Department of Housing and Public Works
How do we get there?
1
2
3
4
5
6
Embed agency leadership and ownership of procurement
Enable through a whole-of-government function
Strengthen governance
Improve industry engagement
Increase our procurement capability
Understand and address knowledge and information needs
The Plan

6. Department of Housing and Public WorksDepartment of Housing and Public Works
How industry feedback has influenced our approach
Industry Feedback
• Procurement should not be centralised
• Embed probity, value for money and local content
when making procurement decisions
• Invest in government staff and build procurement
capability
• Certainty over public sector investment and forward
procurement pipeline
• Streamline and simplify government procurement
processes
• Adopting an agency led, centrally enabled procurement model
• QPP review and updated guidance on probity, value for money
and local content
• Adopting procurement professional and departmental
accreditation frameworks
• Improved forward procurement pipelines across Queensland
government spend
• Establishing the PAIG to coordinated industry advice about how
we can make it easier to do business with government
1 2
5
4 6
3 4 5
2 5
Planning Implementation

7. Department of Housing and Public WorksThe future procurement operating model is made up of six core elements, that combined outline how the model works.
What will this look like in practice? Op Model

8. Department of Housing and Public Works Queensland Government Procurement 8
How can we make sure our efforts are
considered, effective and efficient, and that the
right people are involved in key decisions?
Governance
Manage
Performance
Category
Governance
Category
Council
Queensland Government Procurement
Committee
Strategy&
Support
Governance
CEO Leadership Board
Procurement Industry Advisory
Group
Information &
Communication
Technology
Building
Construction &
Maintenance
Social
Services
Transport
Infrastructure &
Services
General Goods &
Services
Medical
Category
Council
Category
Council
Category
Council
Category
Council
Category
Council
Queensland Government procurement governance model
A tiered governance model that provides strategic oversight and ensures informed,
representative decision-making about procurement-related initiatives

9. Department of Housing and Public Works
What support will be needed to enable effective
procurement across the sector, and how can this
help agencies’ focus their effort?
Organisation
A functional design of the new whole-of-government procurement function and its
interactions with agencies, including the workforce and agency capabilities needed
to support the approach

10. Department of Housing and Public Works
What needs to happen and how can this be done
most effectively?
Process
Key, step-by-step processes needed to deliver on the identified strategy

11. Department of Housing and Public Works
What will be the keys to achieving our procurement
strategy?
Enablers
Elements that provide the insight and information needed for timely decision-
making, while managing the risks of the processes (including systems and
technology, and procurement intelligence).

12. Department of Housing and Public Works
How will we know if we’re being successful and
delivering what’s needed?
Performance
Management
A suite of whole-of-government procurement performance measures and targets
to define and measure progress

13. Department of Housing and Public Works
What is different?
How is the new operating model different from previous approaches?
While some aspects of the new operating model are likely to be familiar, the new model provides greater
clarity about the elements needed for procurement to help deliver great outcomes for Queensland. It
also consolidates the most recent feedback from agencies and industry into a comprehensive map for
procurement across government.
More specifically, the new model outlines in much greater detail:
• how different parts of government and industry can best work together – this includes outlining
the principles of an ‘agency-led, centrally enabled’ approach (with clearly defined roles and
relationship between agencies and the central procurement function), as well as focusing on
engagement between government and industry;
• the strengthened governance structures needed to oversee procurement activities, including
specifying the function and activities of new bodies, how they relate to one another and how
frequently they should interact;
• accreditation for procurement professionals and departments to set minimum standards and a
capability framework to help agencies meet them; and
• the key enablers for our success, with a particular focus on how procurement knowledge
information needs.
Queensland Government Procurement 13
The new
approach

14. Thank you