RSM Australia aiming to ensure ‘good governance in procurement’
Expert insights, opinions and thoughts were shared at the RSM ACT Public Sector Event on 7 August following amendments to the Commonwealth procurement framework.
Key takeaways from the event included the changing of Commonwealth procurement, more engagement with new suppliers and stronger procurement skills, according to RSM Australia.
Department of Finance first assistant secretary Andrew Danks and Australian National Audit Office Group executive director George Sotiropoulos were the two note speakers at the event.
RSM said the changes to the procurement rules were introduced following a government enquiry into conflict-of-interest breaches by big four consulting firms, which uncovered numerous instances of the misuse of government information.
The event provided an opportunity for the speakers and audience to discuss the procurement changes and their impact on public sector procurement in more depth.
RSM said both Danks and Sotiropoulos highlighted the shifting procurement landscape.
Both emphasised the need to promote competition among suppliers to achieve value-for-money outcomes while adhering to the principles of efficiency, effectiveness, economics and ethicality.
Sotiropoulos highlighted the importance of maintaining procurement hygiene during the procurement lifecycle through strategy, planning, performance monitoring and reporting.
“He stressed the value of integrity, transparency and accountability and maintaining focus on the spirit and intent of any procurement throughout its process,” RSM said.
Danks spoke about the importance of well-planned, fit-for-purpose procurement.
RSM said Danks “discussed the need for complex procurements to be properly resourced and all procurements to be conducted in a way that is proportional to their risk value.”
“The goal is to see procurement as a commercial transaction, not merely a compliance-driven exercise.”
The second main takeaway from the event was more engagement with new suppliers, as procurement teams are strongly encouraged to cast a wider net when engaging with suppliers.
This process will involve increased and thorough market analysis and active engagement with industry, with a greater focus on removing barriers for SMEs that may not have a big brand name but could provide valuable solutions.
Danks demonstrated how Commonwealth procurement rules should be seen as a guide rather than a hindrance, as conversing with new suppliers gives the Commonwealth new information to ensure fair competition and established suppliers.
Stronger procurement skills will also be adopted by the Commonwealth to ensure staff have a thorough understanding of governance practices and the confidence to manage risk.
Resource challenges are real and experienced in all areas of government and business, RSM said.
“It is important to leverage value from procurement teams and work with procurement as valued strategic partners with whom they can openly consult and seek guidance.
RSM has expressed excitement to see the continued nurturing of robust procurement practices within the public sector.
