Integrity and Accountability in Procurement and Grants (AU0028)

Summary

This commitment will implement a series of steps to improve procurement and grants processes to strengthen integrity, accountability and transparency. These steps include: • heightening accountability in ministerial decision-making for grants • increasing transparency in grants information • clarifying the Commonwealth’s expectations of suppliers through new Supplier Code of Conduct • enhancing the Commonwealth Grants Rules and Guidelines 2017 (CGRGs) and support services, and • updating guidance material including through the refresh of the Selling to Government and Procurement Policy websites.

Why this commitment is important

The Government is committed to strengthening integrity, accountability and transparency in grant and procurement decision making and contract management. This commitment will have a substantial positive impact noting that approximately $26 billion in grants and approximately $74.8 billion in procurement contracts were provided by the Australian Government in 2022–23.

Grants: The Australian Government uses grants to achieve policy outcomes and deliver services through the non-government sector. Grants provide significant benefits to individuals and organisations, by funding partnerships that deliver programs which make a difference to the lives of Australians. Enhancements to the rules and guidelines, and support services will strengthen accountability and transparency requirements and encourage competitive processes. GrantConnect provides centralised publication of forecast and current Australian Government grant opportunities and grants awarded.

Procurement: The Commonwealth Procurement Framework (Framework) articulates the Australian Government’s approach to the proper use of public resources through procurement. Achieving value for money is the core rule of the Framework and the Framework includes a range of measures to promote a stronger, more prosperous domestic economy and society while ensuring that our free trade obligations are met. Various initiatives will boost APS capability in understanding the Commonwealth Procurement Framework and undertaking procurement, and simplify processes for all businesses to participate. Guidance on the Procurement Policy website is being refreshed or revised and new guidance is being developed. The Selling to Government website will be refreshed to assist business’ interaction with Australian Government procurement, including guidance material on tendering, negotiating and managing contracts.

Commonwealth’s Supplier Code of Conduct: The Australian Government is committed to the highest standards of ethics, probity and integrity. These are the foundations of responsible organisational behaviour and the Government expects the same standards of its suppliers. The Commonwealth’s Supplier Code of Conduct will be developed, outlining behavioural expectations of suppliers and their sub-contractors while under contract with the Commonwealth and place a positive duty on suppliers to take proactive action to prevent and discourage breaches of the Code.

Related OGP challenge areas

• Access to information • Fiscal openness

How the impact of this commitment can be measured

Indicators of success may include: • the release of enhanced grant rules and guidelines • the delivery of education and support services in relation to grants to the APS, including through communities of practice • enhancements to GrantConnect to support reporting transparency • consideration of relevant outcomes in future external reports, such as Australian National Audit Office (ANAO) or Joint Committee of Public Account and Audit (JCPAA) reports • improved guidance for procuring officials and suppliers to Commonwealth, and • the release of the Supplier Code of Conduct.

Other relevant information, e.g. inquiries, research work being undertaken

The proposals have been informed by several recommendations to the Australian Government and Department of Finance from the ANAO audits and JCPAA inquiries into Commonwealth grants and procurement administration. Consultation with Commonwealth entities and the business community will inform the development and implementation of the Supplier Code of Conduct. The ANAO releases reports which may provide further insight on government grants expense, Commonwealth entities’ self-reporting of grants, and procurement activity in the public sector. OGP Global has further information about open contracting in their Open Government Guide.

Milestones

5.1 Public consultation Supplier Code of Conduct stakeholder consultation

5.2 Website enhancement The Procurement Policy website is enhanced

5.3 Website refresh The Selling to Government website is refreshed

5.4 Target release date Supplier Code of Conduct release/date of effect

5.5 Updates to rules and guidelines Enhancements to the Commonwealth Grants Rules and Guidelines 2017

5.6 Updates to website Updates to the GrantConnect website

5.7 Consolidated guide Grants Consolidated Guide

Action Plan Review

Commitment 5. Procurement and Grants Integrity and Accountability