Updated authorised 20092013 lynn lee finance manager

Updated/
authorised
20/09/2013 – Lynn Lee (Finance Manager, Wollongong)
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Australian Hardware Simulated Business
Principles governing the procurement process
1. Probity and ethical behaviour
The principle of probity (which means to have strong moral principles, honesty and decency)
and ethical behaviour governs the conduct of all procurement activities. Employees who have
authority to procure goods and services must comply with the standards of integrity, probity,
professional conduct and ethical behaviour. Employees or directors must not seek to benefit
from supplier practices that may be dishonest or unethical.
2. Sustainability
Follow the sustainability policy and principles outlined in the sustainability policy when
procuring supplies.
3. Value for money
Value for money is the core principle underpinning procurement. Organisations contracted to
do work for Australian Hardware must be cost-efective and efficient in the use of resources
while upholding the highest standards of probity and integrity.
In general, a competitive procurement process that is carried out in an open, objective and
transparent manner can achieve best value for money in procurement.
4. Non-discrimination
This procurement policy requires that the procurement process is non-discriminatory. All
potential contracted suppliers should have the same opportunities to compete for business
and must be treated equitably based on their suitability for the intended purpose.
5. Risk management
Risk management involves the systematic identification, analysis, treatment of risk as well as,
where possible, the implementation of appropriate risk mitigation strategies. It is integral to
efficiency and efectiveness to proactively identify, evaluate, and manage risks arising out of
procurement related activities. The risks associated with procurement activity must be
managed in accordance with the organisation’s risk management policy.
6. Responsible financial management
The principle of responsible financial management must be applied to all procurement
activities. Factors that must be considered include:
●
the availability of funds within an existing approved budget
●
staf approving the expenditure of funds strictly within their delegations
●
measures to contain costs of the procurement without compromising any procurement
principles.
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Australian Hardware Simulated Business
7. Procurement planning
In order to achieve value for money, each procurement process must be well planned and
conducted in accordance with the principles contained in this document. The process must
also comply with all of the organisation’s policies and relevant legal and regulatory
requirements.
When planning appropriate procurement processes, consideration should be given to
adopting an approach that:
●
encourages competition
●
ensures that rules do not operate to limit competition by unnecessarily discriminating
against particular suppliers
●
recognises any industry regulation and licensing requirements
●