Our purpose
The State Procurement Board (the Board) is established under the State Procurement Act 2004 (the Act) to oversee procurement operations for public authorities.
Under the Act, the Board must have regard and seek to further the object of that Act by advancing government priorities and objectives by a system of procurement for government agencies directed towards:
- Obtaining value for money in the expenditure of Government funds;
- Providing for ethical and fair treatment of participants; and
- Ensuring probity, accountability and transparency in procurement operations.
Our role
The Board’s accreditation and assurance programs, oversight of public authorities and major government contracts and a continuing focus on capability development are key elements of the Board’s contribution to effective government administration.
The Board provides comprehensive policies and guidelines to support effective procurement operations across government. These policies have been designed to provide a balance between process rigour and efficiency in accordance with the objective of ensuring value for money, the fair treatment of all bidders, probity and transparency.
The Board’s range of capability development initiatives help improve the procurement and contract management capability of the South Australian Government workforce. Information on the Board’s policy framework and capability development program are available on the Board’s website: spb.sa.gov.au
Ongoing business activities include the review of public authority submissions to the Board, the development and review of the procurement policy framework, capability development and training, secretariat support, complaint investigation and resolution, issuing a procurement authority to newly established public authorities, and reviewing compliance with the procurement framework.
The Board undertakes a strategic role in overseeing the Government’s system of procurement, focusing on fostering efficient and effective procurement practices across government. The Board reviews public authority acquisition plans where the value exceeds the procurement authority issued to public authority Chief Executives by the Board through its Accreditation Program. Data on the number and value of public authority submissions to the Board for 2018-2019 is available on the Board’s website: https://www.spb.sa.gov.au/content/annual-board-attendances-and-approvals-201819.
Our organisational structure
The State Procurement Board is supported by the Policy, Standards and Governance team, Government Services, Department of Treasury and Finance. The structure of the team is set out below.
Changes to the Board
During 2018-19 there were the following changes to the Board’s structure and objectives as a result of resignations or machinery of government changes.
- The Board’s support staff (the Policy, Standards and Governance team) were transferred from the Department of the Premier and Cabinet to the Department of Treasury and Finance
- Resignation of Board members; Ms Marielle Smith, Ms Andrea Michaels and Mr Jason Schell.
Our Minister
The Hon Rob Lucas MLC, Treasurer, is responsible for the State Procurement Act 2004.
Agency contribution to whole of Government objectives
Key objective | Agency's contribution |
---|---|
More jobs |
The Board continues to collaborate with the Office of the Industry Advocate to ensure all policy requirements of the South Australian Industry Participation Policy (SAIPP) relevant to the scope of the Act are incorporated into the Board’s policy framework. Broadly, The SAIPP is designed to deliver economic benefit by promoting:
The Board’s policies reflect the SAIPP, requiring all procurements to consider the opportunities for small, start-up and Aboriginal businesses operating in South Australia to provide a quote or tender in the procurement. Public authorities are also required to implement Economic Contribution Tests and Industry Participation Plans across Government procurements above various thresholds. |
Lower costs |
The Board supports a consistent approach to government procurement from the Not-for-Profit (NFP) sector that sets clear requirements and lowers administrative costs. This year, the Board worked with the Department of Treasury and Finance to finalise a standard NFP funded services agreement. The standard NFP funded services agreement adds to the Board’s simplified contracting suite, aimed at lowering the costs of contracting to both Government and its suppliers. The Board’s policy framework is directed towards achieving procurement outcomes that deliver the best value in the expenditure of public money while ensuring the optimal use of government resources. |
Better services |
The Board supports and develops public authority procurement capacity and capability through targeted training and other capability development activities. The effective implementation of procurement policies, procedures and operational practices by public authorities improves services and reduces unnecessary administrative costs, procurement and contracting risks to Government. This supports:
|
Agency specific objectives and performance
Agency objectives | Indicators and performance |
---|---|
Support and develop public authority procurement capacity and capability through targeted training and other capability development activities. |
In 2018-19, the Board ran an extensive capability development program, which included the following activities:
|
Confirm and monitor an accreditation program to ensure that public authorities have the capability to appropriately exercise their delegation |
The accreditation process is an independent assessment of each public authority’s procurement strategies, processes and systems to ensure it effectively manages its procurement operations. Accreditation provides public authority Chief Executives with the authority to undertake procurements up to a specified dollar value without reference to the Board, with transactions greater than the accredited level to be considered by the Board for approval. This promotes good governance and managerial effectiveness at the local level and provides greater accountability to CEs. Through accrediting CE’s, the Board can better focus on strategic matters, recognising that public authorities are best placed to manage their risk and deliver value for money. The 2018-22 Accreditation Program has commenced. The program has initially focused on the six largest public authorities (Tier 1), accredited to a value threshold of $15 million. These Tier 1 public authorities account for approximately 80 percent of the goods and services spend across government. The program reviews these public authorities across 28 better practice procurement principles in the areas of:
In 2018-2019, the Board has completed the accreditation reviews for the Department of Education and the Department for Human Services. The accreditation reviews were undertaken by an independent reviewer. The reviewer assessed how the public authority fulfilled each of the designated five, high level procurement categories. Public authorities were required to prepare a development plan to address issues requiring improvement or rectification. If significant issues are identified during the accreditation reviews in areas such as governance, risk or any of the procurement principles, the Board can implement strategies to reduce risk to government, such as reducing the procurement authority of public authorities or implementing strategies to increase oversight of procurement operations. |
Confirm and improve public authority procurement compliance and practice against Board policies and procedures through an assurance process |
The 2018-22 Assurance Program has commenced. The program requires onsite evaluation of the compliance of public authorities with the mandated requirements of Board policies, principles, guidelines, standards or directions. The Assurance Program reviews all public authorities with a procurement authority. The Assurance Program enables the Board to meet its legislative obligations by ensuring that public authorities comply with the mandated requirements of Board procurement policies, principles, guidelines, standards or directions. The new Assurance Program also includes an assessment of Tier 2 public authority procurement operations to ensure that fundamental organisational requirements are in place for an effective procurement operation. In 2018-19, the Board completed four Tier 3 public authorities reviews and one Tier 2 public authority. The assurance review for the Tier 2 public authority was undertaken by an external reviewer. |
Corporate performance summary
Reporting is included in the 2018-19 Department of Treasury and Finance Annual Report.
Employment opportunity programs
The Board’s support staff, as employees of the Department of Treasury and Finance, participate in programs set out in the 2018-19 Department of Treasury and Finance Annual Report.
Agency performance management and development systems
Reporting is included in the 2018-19 Department of Treasury and Finance Annual Report.
Work health, safety and return to work programs
Reporting is included in the 2018-19 Department of Treasury and Finance Annual Report.
Executive employment in the agency
Reporting on executive employment is included in the Department of Treasury and Finance’s Annual Report 2018-2019.
The Office of the Commissioner for Public Sector Employment has a workforce information page that provides further information on the breakdown of executive gender, salary and tenure by agency.
Financial Performance
Full audited financial statements for 2018-2019 are attached to this report.
Consultants disclosure
The following is a summary of external consultants that have been engaged by the agency, the nature of work undertaken, and the actual payments made for the work undertaken during the financial year.
Consultancies with a contract value below $10,000 each
Consultancies | Purpose | $ Actual Payment |
---|---|---|
All consultancies below $10,000 each - combined | Various | $18,127 |
Consultancies with a contract value above $10,000 each
Consultancies | Purpose | $ Actual Payment |
---|---|---|
PSI Asia Pacific P/L | Complaint investigation | $13,207 |
Data for previous years is available on Data.SA at:
See also the Consolidated Financial Report of the Department of Treasury and Finance for total value of consultancy contracts across the South Australian Public Sector.
Contractors disclosure
The following is a summary of external contractors that have been engaged by the agency, the nature of work undertaken, and the actual payments made for work undertaken during the financial year.
Contractors with a contract value below $10,000 each
Contractors | Purpose | $ Actual Payment |
---|---|---|
All contractors below $10,000 each - combined | Various | $1,982 |
Contractors with a contract value above $10,000 each
Contractors | Purpose | $ Actual Payment |
---|---|---|
Comprara Pty Ltd | Capability assessment | $63,927 |
Major Training Services | Training | $49,734 |
KPMG | Assurance reviews | $107,893 |
ArcBlue Asia Pacific | Accreditation reviews | $53,617 |
ArcBlue Asia Pacific | Policy review | $13,805 |
TOTAL: $288,976 |
Data for previous years is available on Data.SA at:
The details of South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. View the agency list of contracts.
The website also provides details of across government contracts.
Risk management
Risk and audit at a glance
The Department of Treasury and Finance administratively supports the Board in accordance with the department’s Risk Management Framework. Reporting is included in the 2018-19 Department of Treasury and Finance Annual Report.
Fraud detected in the agency
There were no known instances of fraud detected in the activities undertaken by the Board in this reporting period.
Strategies implemented to control and prevent fraud
Strategies implemented by the Department of Treasury and Finance are included in the 2018-19 Department of Treasury and Finance Annual Report.
Whistle-blowers disclosure
Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Whistleblowers Protection Act 1993:
0
Data for previous years is available on Data.SA at:
Reporting required under any other act or regulation
Nil.
Public complaints
Number of public complaints reported to the State Procurement Board
Complaint categories | Sub-categories | Example | Number of complaints 2018-19 |
---|---|---|---|
Supplier procurement complaint against an Agency | Flawed procurement process. | Claims of a flawed and biased procurement process undertaken by a Government Agency. The Board appointed an external investigator to review the procurement process and the complaint was not upheld. | 1 |
Data for previous years is available on Data.SA at: