26 September 2023

New procurement policy to ‘bar’ suppliers

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The Department of Finance has developed Australia’s first ‘debarment regime’ that gives the public sector power to suspend or debar suppliers as a way of enhancing integrity in procurement.

The regime forms part of broader work to reform procurement practices, ensuring Government contracting is open, fair and transparent.

Minister for Finance, Ben Wyatt said that in the worst cases of wrongdoing such as a supplier being convicted of fraud, bribery or corruption, the new regime could be used to prevent such suppliers from doing business with Government.

“As part of the process, suppliers will be allowed a right of response and independent review of any decision,” Mr Wyatt said.

“The regime will be supported by the Procurement Bill 2020, which I introduced to State Parliament in May.”

He said no other Australian jurisdiction currently had a debarment regime in place that applied to all types of procurement.

“Unlawful business behaviour by suppliers undermines fair competition, is a barrier to economic growth and increases the cost and risk of doing business,” Mr Wyatt said.

“The development and implementation of a debarment regime is evidence the State is committed to open, fair and transparent contracting, in partnership with suppliers who conduct business responsibly.”

He urged industry and the public to provide robust feedback “to help us improve public confidence in procurement”.

Industry and the public have been invited to comment on the draft debarment regime by 27 July with details at this PS News link.

The 20-page regime can be accessed at this link.

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