Government Purchasing - August 2009

The Government has recently released the Australian Government Procurement Statement which outlines the principles and procedures that must be followed for Commonwealth procurement.

http://www.financeminister.gov.au/media/2009/docs/Australian_Government_Procurement_Statement.pdf

In the Statement, the Government indicates it expects all tenderers for Government work to meet their legal obligations under the Fair Work Act. To assist with compliance with the Fair Work Act, the Government has developed a set of Fair Work Principles (see link) which provide that compliance with the Fair Work Act is a "condition for participation" in Federal Government procurements.

According to the Principles a consequence of this contractual requirement is that a breach of any industrial law, occupational health and safety law or workers compensation laws, will also constitute a breach of the contract with the Australian Government. The Statement provides that the Government will prohibit agencies from entering into contracts with suppliers that have a judicial decision against them for unpaid employee entitlements.

Suppliers will be required to provide undertakings that they have not been subject to adverse judgements for a breach of industrial laws, occupational health and safety or workers compensation laws during the past two years and not subject to any outstanding claims (not including decisions under appeal).

There will be an obligation on federal agencies to take the requirements into consideration when awarding contracts. Government suppliers may be asked to provide information on matters including compliance with awards, industrial agreements and laws, provision of annual and long service leave entitlements, capacity to meet employee entitlements and superannuation contributions as well as compliance with safety and workers compensation laws.

http://alp.org.au/media/0709/msewr310.php