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Purpose
While the State Purchasing Policy applies to all Government procurement, a number of additional principles and guidelines are relevant only for the procurement of ICT products and/or services. This Information Standard covers those additional principles and is designed to complement the State Purchasing Policy. The implementation of this Standard should also take into consideration agency purchasing procedures.
This Information Standard fits under Mechanisms and Standards within the Enterprise Architecture Representation section of the Government Enterprise Architecture (GEA) Framework.
Policy statement
ICT now effectively underpins Government and community endeavours in the evolving information economy. Within the Queensland Government, its importance can be seen in the growing dependence of agencies on ICT for all aspects of service delivery. This in turn is reflected in the magnitude of Government expenditure on the procurement of ICT products and services.
This dependence and the related high levels of expenditure in Government on ICT products and/or services equate to high risk procurement, particularly when combined with the complexity of the ICT environment and the speed of technological change. The Government has also recognised the need for a strong and vibrant ICT industry within the State. To that end, agency ICT procurement activities must be conducted in a:
- planned and managed environment in accordance with appropriate legislative and statutory obligations including those of the State Purchasing Policy; and
- manner that assists local ICT industry without prejudicing product quality and competitiveness.
Issue and review
This Standard (V3.01) was issued by the Director-General of the Department of Public Works in February 2007.
Review of this Standard will occur on an annual basis.
Implementation
The authority for the implementation of the mandatory principles of the Information Standards is primarily derived from the FMS. The implementation of this standard is extended to apply to all agencies and statutory authorities of the Queensland Government covered by the State Purchasing Policy. Version 3.01.00 has new mandatory requirements under Principle 3 – Industry Development. Therefore, the implementation dates for these requirements are:
High-level risk assessment: Completion August 2007
High risk principles implementation: Completion February 2008
All other implementation dates are still set as in Version 3.00.
Agencies should also refer to the general procurement requirements of the State Purchasing Policy when developing implementation plans.
Implementation advice and toolboxes are provided to assist agencies in implementing the mandatory principles of each Information Standard.
IS13 implementation toolbox
Mandatory Principles
Principle 1 - Procurement Planning
ICT procurement must be consistent with the requirements of the State Purchasing Policy and all other relevant legislative or statutory obligations under which the agency operates. When planning for ICT procurement, agencies must at a minimum ensure:
- that ICT procurement is consistent with their agency’s Corporate Procurement Plan, agency standards and procedures, and other ICT strategic and/or business planning requirements; and
- that Plans for Significant Purchases are prepared for all ICT purchases of a high relative expenditure and/or for which supply is difficult to secure.
Agencies should ensure that the requirements of this Information Standard are applied within the general context of the due diligence, accountability and probity outlined in:
Effective and efficient planning for ICT procurement provides an agency with the strategies to advance the State Purchasing Policy objectives. In terms of planning for ICT procurement, the agency should consider and plan its strategies for ICT total cost of ownership, value for money, risk management, training, supply market analysis and the review of existing ICT supply arrangements.
In an integrated approach to ICT planning and procurement, well established links should exist between the:
- State Procurement Policy;
- Agency ICT Strategic Resources Plan and Agency Business Plans;
- Department of Tourism, Regional Development and Industry - Local Industry Policy;
- Government priorities;
- Whole-of-Government procurement arrangements;
- Government ICT priorities and directions in ICT and service delivery; and
- Shared service initiatives.
The Industry/Government ICT Group was established by the Premier in October 2005 to provide a forum where the Government and the ICT industry could work together to identify opportunities and respond to issues affecting the productivity and effectiveness of the ICT industry in Queensland.
As a result, agencies are required to contact the Industry Liaison Group, Queensland Government Chief Information Office who will review:
- all proposed ICT product and service purchases and
- proposals to establish standing offer or other panel supply arrangements.
where the projected total (staged or otherwise) whole of life costs of the purchase is $2 million or above. These reviews are to be conducted prior to the agency going out to market.
This process is intended to provide 'best practice' advice to agencies to ensure the highest opportunity for agency ICT investment to achieve outcomes.
For further details please contact the Industry Liaison Group on 323 83595.
Supply market analysis enables the agency to get to know and understand how the market works, the direction in which it is heading, the key suppliers and the value they place on the agency as a customer.
To ensure that existing arrangements continue to meet the ICT requirements of the agency and provide value for money, these issues should be addressed in the agency ICT Procurement Plan. Further information can be sourced through Queensland Purchasing Better Purchasing Guides.
To ensure effective ICT procurement management, appropriate and regular training should be provided to staff involved in procuring ICT products and/or services. The Queensland Purchasing Training and Development unit assists departments/agencies to develop and train officers involved in a variety of procurement disciplines. Further information can be sourced through Queensland Purchasing Better Purchasing Guides.
Principle 2 - Procurement Process
The contractual terms and conditions of the Cabinet endorsed Government Information Technology Conditions (GITC) agreement must form the basis of contracts established for the procurement of ICT products and/or services. When engaging in ICT procurement, agencies must at a minimum ensure that:
- procedures are in place to address GITC requirements and ICT procurement processes including supply market analysis, risk analysis, administration, enquiry,evaluation and de-briefing; and
- issues and risks relating to security and privacy are addressed in ICT contracts where relevant.
Queensland Cabinet has endorsed the use of GITC contractual terms and conditions for all ICT procurement including upgrades and enhancements of ICT products and services by Government. All procurement of ICT products and services is to be made through suppliers who have signed a Government Information Technology Conditions (GITC) Agreement with the State of Queensland.
ICT products and/or services generally cover all types of technology (data, voice, video, etc.) and associated resources, which relate to the capture, storage, retrieval, transfer, communication or dissemination of information through the use of electronic media. All resources required for the implementation of ICT are encompassed, namely equipment, software, facilities and services, including telecommunications products and services that carry voice and/or data. All enquiries regarding the eligibility of ICT products and services under GITC should be directed to the GITC services area.
The GITC framework provides significant benefits, not only to Government agencies, but also to ICT suppliers and to Government industry development objectives. The GITC is managed by GITC Services. For further information refer to the GITC website. GITC Services should be informed of any agency ICT contracts and acquisitions.
Purchasing from a non-GITC supplier could expose the agency to risk. Where ICT products and/or services are only available from a sole supplier that is not, or, refuses to become, a signatory to the terms and conditions of GITC, the agency should seek advice from GITC Services and/or local agency risk management instructions before proceeding.
Agency procurement procedures need to provide documented processes to direct how the agency will undertake and manage its procurement activities. The framework and procedures will vary across agencies, however, at a minimum, procedures should cover:
- Risk management;
- Roles and responsibilities;
- Evaluation processes;
- De-briefing processes;
- Handling enquiries; and
- Complaint management.
Further detailed information concerning ICT procurement processes can be found in the ICT Procurement (IS13) Best Practice Guide and in the Queensland Purchasing Better Purchasing Guides.
To streamline the procurement of ICT products and/or services by reducing the time and costs involved, a range of facilities for electronic procurement is currently being developed.
The Queensland Government Marketplace eTender is a web-based electronic tender system, which provides a site through which Queensland Government departments and agencies advertise current business opportunities for ICT products and/or services supply. Agencies should contact Queensland Purchasing for further information.
Agencies should assess on a case-by-case basis how security and privacy issues need to be addressed in contracts and offers. For further information on security in relation to dealing with third parties, agencies should refer to Information Standard Security (IS18).
Principle 3 - Industry Development
Where an agency or agencies have elected to invite public offers, agencies must ensure that all ICT suppliers, including local and/or regional, are provided with the opportunity to access and respond to ICT offer information on the Queensland Government Market Website in a timely manner. When planning or conducting ICT purchasing activities agencies must ensure:
- that Forward Procurement Schedules and all relevant information relating to invitations to offer are published on the Queensland Government Marketplace and that these schedules are presented to industry through the Information Industries Bureau following annual budget allocations;
- that ICT procurement is consistent with the requirements of the SME Participation Scheme; and
- that procedures are in place to report the details of contracts awarded on a quarterly basis to the Information Industries Bureau.
Agency Corporate Procurement planning allows agencies to provide notice of significant ICT purchases to the industry. By publishing advance notice through Forward Procurement Schedules of significant ICT purchases, agencies can increase industry awareness and improve the preparation of responses to invitations, producing a better result for all parties involved.
Following the budget allocation process, agencies are required to announce to industry their Forward Procurement Schedules for significant ICT purchases. This is to take the form of a presentation to industry facilitated by the Information Industries Bureau (IIB) and through the publishing of these. Agencies should contact the IIB for further information on this. Additional information can also be found in the ICT Procurement (IS13) Best Practice Guide.
Under the State Purchasing Policy, each agency must devolve to the lowest practical geographical level decision-making and associated budgets for purchases that the agency assesses are of low relative expenditure and for which supply is easy to secure.
When an agency with regional offices is establishing an arrangement for the supply and support of ICT equipment, it is to include a requirement for the preferred supplier(s) to channel products and/or services through companies based in the region, which are capable of meeting the requirement.
The SME Participation Scheme (the Scheme) is a new requirement for Queensland Government procurement of ICT products and services and has a specific intent of assisting ICT SMEs to access the Queensland Government market.
When planning for ICT Procurement agencies should ensure that they are consistent with the requirements of the Scheme.
Additional information on specific aspects of the SME Participation Scheme can be obtained from the Information Industries Bureau SME Participation Scheme website.