5. Contract management and contract disclosure: Goods and services policy

The contract management and disclosure policy covers rules for managing and disclosing goods and services procurement contracts.

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Context

This policy outlines the requirements for contract management and contract disclosure.

In meeting the mandatory requirements, the level of detail in the agency's procurement policies and processes will be determined by the Chief Procurement Officer or equivalent and will be commensurate with the agency's procurement profile.

5.1 Contract management

Contract management is the systematic and efficient management of contract creation, execution and analysis for the purpose of maximising financial and operational performance and minimising risk.

5.1.1 Contract management operates at 2 distinct levels:

  • at the level of the agency as a high-level contract management planning strategy
  • at the level of individual procurement activity

5.1.1.1 Contract management at the organisational level

At the agency level, a contract management planning strategy can identify how individual contracts in a procurement category could be managed. It positions contract management issues at the beginning of the procurement planning cycle and allows for the effective allocation of resources.

Developing a contract management planning strategy takes place at the beginning of the planning process after identifying procurement categories and carrying out an assessment of complexity.

5.1.1.2 Contract management at the individual procurement level

At the individual procurement activity level, contract management is the management of contracts made with supplier(s) to ensure that goods and services are delivered as agreed over the life of the contract and that value for money is consistently achieved. Contract management as a function can extend beyond the current term of the contract where there are ongoing obligations associated with maintenance agreements, warranties and guarantees.

Consideration of contract management issues is relevant across the elements of market analysis and review and market approach.

At the market approach stage of sourcing, it can inform prospective suppliers about the agency's intended legal arrangement in delivering the procurement requirement.

5.1.2 Mandatory requirements

The agency must manage its contracts in a manner that is appropriate for the complexity and risk of the procurement activity.

At a minimum, the agency must develop:

  • a contract management planning strategy for categories of that represent a significant proportion of the agency's spend
  • a contract management plan for each individual procurement activity that is critical and high risk

The accountable officer must ensure that:

  • contracts are managed on behalf of the agency by people with sufficient capability
  • contracts clearly define the performance standards, review mechanisms and deliverables required from the supplier

The agency must:

  • keep an appropriate record of contracts on a contracts register
  • monitor contracts to ensure the expiry dates of insurance certificates are current and new certificates are obtained prior to expiry

5.2 Contract disclosure

An agency makes specific information available to the community on the contracts it has entered into with a supplier.

Contract disclosure, including disclosure of variations, ensures high standards of probity and transparency in government procurement.

5.2.1 Mandatory requirements

5.2.2.1 Contract disclosure

Agencies must disclose the key details for contracts (excluding contracts under head agreements), with a total estimated value equal to or exceeding $100,000 (including GST) within 60 days of the award of a contract on the central government contract publishing facility.

Disclosure relates to:

  • a head agreement
  • individual procurement contracts that are not contracts under a head agreement

Key details for disclosure include:

  • contract details:
    • contract number
    • contract title
    • type of contract
    • total estimated value of contract or SPC/SEPC
    • start date and current term of contract
    • category
  • agency details:
    • agency
    • contact person
    • contact number
    • email address
  • supplier details:
    • name of supplier
    • Australian Business Number or Australian Company Number

Agencies must disclose full contract information for contracts with an estimated value exceeding $10 million (including GST) on the contract publishing facility. Only trade secrets or genuinely confidential business information will be withheld from voluntary disclosure, along with material which if disclosed would seriously harm the public interest. The Government will be guided by the criteria established by Parliament in the Freedom of Information Act 1982.

Agencies are to develop protocols and procedures detailing such exemptions from disclosure.

5.2.2.2 Variation disclosure

Each individual variation, or variations with a cumulative value exceeding $100, 000 (including GST) must be disclosed on the contract publishing facility against the contract to which the variation relates. The estimated value of the variation and the adjustment to the total estimated value of the contract must be noted on the contract publishing facility.

Using this policy

There are 4 other goods and services policies, this is policy 5 of 5.

For a complete policy list, see goods and services policies.

Tools and support

Access a document version of this guide in the Toolkit and library.

For more information about Contract management and contract disclosure: Goods and services policy, please contact the Goods and services team.

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