2019/20 Annual Report

2019-20 Annual Report (5 MB)

From the Presiding Member

I am pleased to present the State Procurement Board’s (‘Board’) Annual Report for the year ending 30 June 2020.

The Board’s achievements in 2019-20 include:

  • supporting reform of Government’s procurement framework, through revised policies to reflect recommendations of the South Australian Productivity Commission’s Inquiry into Government Procurement.
  • establishment of a new framework for developing procurement capability across the public sector.
  • completion of the Board’s accreditation program.
  • ongoing operational activities including the review of public authority submissions to the Board; participation in government reviews and reform activities; required updates of existing policies and guidelines; complaint investigation and resolution; and issuing procurement authorities to newly established and realigned public authorities.

The public sector’s procurement framework, including the role of the State Procurement Board, has been reviewed in inquiries undertaken by the Statutory Authorities Review Committee (‘SARC’) and South Australian Productivity Commission (‘SAPC’).

SARC recommended that the Board be abolished, along with all associated legislation, policies and guidelines. The SAPC also recommended repealing the State Procurement Act 2004 (‘Act’) as part of a series of broader reforms.

In support of the recommendations of the SARC and SAPC, the Government has approved that the State Procurement Board be abolished. It is anticipated that the Board will be dissolved by the end of 2020.

Until that time, the Board will continue to focus on supporting the recommendations of SARC and SAPC to deliver an improved procurement framework.

I would like to thank all Board members, past and present, for their valued service and contribution in administering the provisions of the Act and supporting the procurement operations of government.

I gratefully acknowledge the support of the Hon. Rob Lucas MLC, Treasurer, and the management and staff of the Procurement, Governance and Capability group, Department of Treasury and Finance, for their assistance to the Board in meeting its objectives.

Nicolle Rantanen

Presiding Member

Overview: about the Board

Our strategic focus

Our Purpose

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 to 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 have been key elements of its contribution to effective government administration.

The Board’s range of capability development initiatives contribute to improving 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 have included the review of public authority submissions to the Board, the development and review of the procurement policy framework, capability development and training, complaint investigation and resolution, issuing of a procurement authority to newly established public authorities, and reviewing compliance with the procurement framework.

This year the Board refreshed the Heads of Procurement forum and established Communities of Practice for agencies to share good practice andlessons learnt.

Public authority acquisition plans were reviewed, where the value exceeded the procurement authority issued to the public authority Chief Executive by the Board through its Accreditation Program.

Data on the number and value of public authority submissions to the Board for 2019-20 is available on the Board’s website.

State Procurement Board organisational structure

The Board has been supported by the Procurement Policy, Governance and Capability team, Government Services, Department of Treasury and Finance. The structure of the team in 2019-20 is set out below.

Changes to the Board

During 2019-20 the following changes occurred to the Board’s membership.

Resignation of Board member

Dr Caroline Croser-Barlow resigned, effective from the date of a replacement member being appointed by the Governor. This new appointment occurred on 10 October 2019 and Dr Croser-Barlow’s appointment was subsequently revoked.

New member

Judith Formston was appointed from 10 October 2019.

Members Reappointed

Mr Jamin Woolcock was reappointed on 10 October 2019.

Ms Jacqueline Bray was reappointed on 31 October 2019.

Mr David Henchliffe was reappointed on 14 November 2019.

Continuing Appointments

Ms Kelly Tattersall continues her appointment (appointed 20 December 2018).

Our Minister

The Hon Rob Lucas MLC, Treasurer, is responsible for the State Procurement Act 2004.

Our Board

Nicolle Rantanen, Presiding Member

Nicolle Rantanen was appointed to the role of Presiding Member in April 2016.

Nicolle is the South Australian Public Trustee and manages over 185 staff with responsibilities including corporate strategy, financial management and investment of over $1.2 billion.

Prior to this, she was the Chief Operating Officer of the Department of Treasury and Finance from 2016-2018. From 2009 to 2016 Nicolle held senior executive positions at Statewide Super, including as Chief Executive Officer for 12 months.

Nicolle's extensive experience within the superannuation and banking industry is backed by her strength in strategic planning, organisational development, business improvement, finance, systems and administration.

Nicolle has a Master of Commercial Law, a Master of Business Administration and a Bachelor of Commerce. She is a Fellow of the Australian Institute of Company Directors, a Fellow of the Australian Society of CPAs and a Fellow of the Taxation Institute of Australia.

Nicolle is a Director of Credit Union SA and Chair of the Risk Committee, Divisional Councillor for CPA SA/NT, Divisional Councilor SA/NT for the Australian Institute of Company Directors, Vice President of the Grange Golf Club and Chair of the Finance Committee and Member of the Office for Recreation, Sport and Racing Audit Committee.

Ms Jackie Bray – Member

Jackie has been in the role of the Deputy Chief Executive within the South Australian Department for Correctional Services since May 2015. Jackie is responsible for the state-wide operation of nine prisons and the state’s community corrections services.

Since commencing with the Department Jackie has progressed significant reform in the area of protective security; strengthened access control including commissioning new technologies; managed growth in the prisoner population; expanded and developed prison industries; built capacity in emergency management and response; and introduced structured days.

A challenging and reformist leader, Jackie has been heavily involved in policy development and produced many reports leading to improved services for both service users and communities.

Mr David Henchliffe – Member

Mr David Henchliffe is currently Group Manager, Strategic Procurement at OZ Minerals. David has over 30 years’ experience as a leader and executive in the supply chain profession. He has led a number of large teams in complex, dynamic and culturally diverse environments servicing many clients in both the Defence and private sectors. David holds a Bachelor of Science (Honours); a Master of Arts; a Master of Defence Studies and a Master of Management Studies. He is a Fellow of the Chartered Institute of Procurement and Supply (CIPS) and a Graduate Member of the Australian Institute of Company Directors. David has had extensive experience in the areas of sourcing, contracting, supplier relationship management, materials management, logistics, project management, organisational leadership and change management.

Ms Kelly Tattersall – Member

Ms Kelly Tattersall is currently Deputy Commissioner of State Taxation, Revenue SA in the Department of Treasury and Finance. She has previously held procurement roles within the Department of Education and South Australia Police and moved into a procurement leadership role when she joined the Department of Human Services. Ms Tattersall led the procurement and grants function within the department, whilst also taking responsibility for the department’s strategic planning function and Registered Training Organisation and Screening Unit at various times.

Ms Tattersall completed her Bachelor of Laws and Legal Practice and Bachelor of Science at Flinders University in 1999 and was admitted to the bar of the South Australian Supreme Court in 2001. Through the State Procurement Board’s procurement capability development program Ms Tattersall completed a Master’s in Management (Strategic Procurement) at the University of South Australia in 2015.

Ms Tattersall has been a member of the Chartered Institute of Procurement and Supply since 2006 and attained full membership (MCIPS) in 2015 and Chartered status in 2018.

Mr Jamin Woolcock - Member

Mr Jamin Woolcock is the Chief Finance Officer, SA Health. Mr Woolcock has been in the role of Chief Finance Officer, SA Health since 2010. With over 20 years’ working in the public sector Jamin has considerable experience in a range of public sector functions including management and financial accounting, procurement and audit.

Ms Judith Formston – Member from 10 October 2019

Ms Formston is an experienced corporate and finance professional with expertise in Government policies and budget processes. Ms Formston works with the Department for Infrastructure and Transport with responsibility for setting the strategic direction and delivering the corporate functions of Procurement, Finance, Safety, Audit and Risk, Information Technology, Legal & Commercial and Human Resources.

Over the past 20 years Ms Formston has held a variety of senior policy, finance, budget and investment strategy positions, within the South Australian Government, including within the Department of Planning, Transport and Infrastructure and the Department of Treasury and Finance.

Ms Formston holds a Bachelor of Commerce, majoring in Accounting and Economics. She is a former Board Member of Austroads and has a sound understanding of the transport sector and road network management principles across Australia.

Dr Caroline Croser-Barlow – Member until 10 October 2019

Dr Caroline Croser-Barlow is the Executive Director, Early Years and Child Development at the Department for Education. Her previous role was Group Executive Director, People and Performance at the Department of Environment, Water and Natural Resources (DEWNR). Dr Croser-Barlow has worked across a number of elements of corporate governance, including overseeing the establishment of an internal process to manage unsolicited proposals, supporting improved clarity of relationships with statutory boards and as DEWNR's lead on energy policy. Dr CroserBarlow has previously worked in the Department of the Premier and Cabinet (SA) and the Department of Defence, including a posting as the civilian Policy Advisor to the Australian Defence Force Commander of forces in the Middle East.

Legislation administered by the Board

State Procurement Act 2004

The agency’s performance

Agency contribution to whole of Government objectives

Key objective

Agency’s contribution

More jobs

The South Australian Industry Participation Policy (SAIPP) is designed to deliver economic benefit by promoting employment for residents of South Australia; investment and capital expenditure that builds capacity in the South Australian economy and use of businesses and supply chains that employ South Australian residents and invest in the State.

The Board has continued its collaboration with the Office of the Industry Advocate (OIA), reflecting in its policy framework improvements made to the Industry Participation Policy including revised (raised) thresholds and simplification of the process for suppliers developing Industry Participation Plans.

The Board worked closely with the OIA to simplify its market response documents and reduce duplication of information required to be submitted by suppliers responding to government tenders.

The Board updated its policies to improve transparency in IPP scoring when debriefing suppliers.

Lower costs

The Board’s policy framework aims to assist in achieving procurement outcomes that deliver the best value for 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 development activities.

The effective implementation of procurement policies andprocedures by public authorities aims to assist in improving services. This supports:

  • the achievement of value for money;
  • ethical and fair treatment of suppliers; and
  • probity, accountability and transparency.

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 2019-20, the Board ran an extensive capability development program. However, due to the impacts of COVID-19 restrictions, a number of scheduled activities were postponed or cancelled. The following activities occurred:

  • 2 new procurement graduates commenced a structured 12-month program in Strategic Procurement, Department of Treasury and Finance (DTF). This program is complemented by the DTF Graduate Program facilitated by the University of Adelaide.
  • 1 procurement forum was held in October 2019 and was fully subscribed with 100 attendees.
  • 128 registrations were made for online training courses. 11 online courses were available ranging from Introduction to Procurement (SA Government specific), Introduction to Contract Management, Disposing of Assets and Category Management.
  • 17 face-to-face training courses were also held, with a total of 171 staff attending. Training was delivered by Comprara Pty Ltd, CIPS Australasia, Major Training Services (MTS) and Transformed Pty Ltd.
  • 13 agency focused face-to-face training courses were held, with a total of 256 staff attending. • Representatives from the National Heavy Vehicle Regulator delivered 3 information sessions to explain the responsibilities, legal obligations and penalties imposed by the National Heavy Vehicle Legislation. It also covered practical steps for staff to consider when planning their procurements and/or managing contracts. These 90-minute information sessions were free of charge for SA Government staff to attend. 58 participants attended in total. Overall feedback from the sessions was positive with 100% of participants finding the session either very or extremely informative. • A new Procurement Capability Development Strategy was developed for 2020-22.
  • Students continued the online Diploma of Procurement & Contracting.
  • The Procurement Qualification Support was created. The Fund provides financial support to staff who have successfully completed a procurement or contract management qualification. The fund was designed to recognise and reimburse staff who have undertaken a procurement qualification at their own full or partial expense.
  • 11 students completed the CIPS Corporate Award Program.

In response to the COVID-19 pandemic the Board improved its e-Learning offerings.

The new online offering will enable the delivery of various modes of training, including “face to face”, online, and direct training via video conferencing.

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 (CEs) 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.

The Accreditation Program has now been completed. The program 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 reviewed these public authorities across 28 better practice procurement principles in the areas of:

  • Leadership and Strategy
  • Organisation and People
  • Governance and Performance Management
  • Processes and Systems
  • Relationships – Internal and External.

In 2019-20, the Board has completed the accreditation reviews for:

  • SA Health
  • SA Police
  • Department of Treasury and Finance
  • Department of Planning, Transport and Infrastructure

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 items requiring improvement or rectification.

Corporate performance summary

Reporting is included in the 2019-20 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 2019-20 Department of Treasury and Finance Annual Report.

Agency performance management and development systems

Reporting is included in the 2019-20 Department of Treasury and Finance Annual Report.

Work health, safety and return to work programs

Reporting is included in the 2019-20 Department of Treasury and Finance Annual Report.

Executive employment in the agency

Reporting on executive employment is included in the 2019-20 Department of Treasury and Finance Annual Report. 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

Financial performance at a glance

Full audited financial statements for 2019-20 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

 

Nil

Consultancies with a contract value above $10,000 each

Consultancies

Purpose

$ Actual payment

KPMG

Policy review

$23,982

 

Total 

$23,982

Data for previous years is available on Data.SA at: State Procurement Board Annual Report Data.

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

Contractors

Purpose

$ Actual payment

All contractors below $10,000 each - combined

 

Nil

Contractors with a contract value above $10,000 each

Contractors

Purpose

$ Actual payment

Major Training Services

Training

$ 24,827

ArcBlue Consulting

Accreditation program

$ 41,368

Procurement Advisory Services

Policy review and support

$ 42,351

Comprara Pty Ltd

Capability development

$11,100

EBMS Pty Ltd

Procurement system support

$15,000

Riverbourne Pty Ltd

Procurement system strategy

$19,200

 

Total

$153,846

Data for previous years is available at: State Procurement Board Annual Report data.

 The details of South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. The website also provides details of across government contracts.

Risk management

Risk and audit at a glance

he Department of Treasury and Finance administratively supports the Board in accordance with the Department’s Risk Management Framework. Reporting is included in the 2019-20 Department of Treasury and Finance Annual Report.

Fraud detected in the agency

There were no known incidences 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 2019-20 Department of Treasury and Finance Annual Report.

Public interest disclosure

Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018: Nil.

Data for previous years is available on Data.SA at: State Procurement Board Annual Report data.

Reporting required under any other act or regulation

Nil.

Public complaints

Number of public complaints reported

No formal public complaints were reported to the Board in this reporting period. Data for previous years is available on Data SA.

Appendix: Audited financial statements 2019-20

Audited Financial Statements 2019-20 (4.6 MB)