Operational Directive Enquiries to: Will Monaghan

A/Chief Procurement Officer OD number: 0533/14

Phone number: 9222 2411 Date: 11 May 2015

Supersedes: N/A File No: F-AA- 28269

Subject: PROCUREMENT DELEGATION SCHEDULE AND PROCUREMENT DELEGATION SCHEDULE BUSINESS RULES

PURPOSE To provide a simple, easy to follow set of Procurement Delegations and Procurement Delegation Schedule Business Rules for WA Health. The Department of Health and the Health Services maintain separate Authorities, Delegations and Direction Schedules. While there is some mention of contracts, these schedules do not meet the State Supply Commission (SSC) Act requirement to maintain a Procurement Delegation Schedule, as clearly articulated in the SSC Partial Exemption (2011). It is mandatory that WA Health complies with this Operational Directive. SCOPE This operational directive applies to all WA Health entities and shared services including: Department of Health including Health Corporate Network and the Health Information Network;

North Metropolitan Health Service; South Metropolitan Health Service; WA Country Health Service; Child and Adolescent Health Service; and Pathwest.

BACKGROUND This Procurement Delegation framework follows on from an agenda item at the Fiona Stanley Hospital and Perth Children’s Hospital Taskforce meeting in October 2013, where a Procurement Delegation Schedule for WA Health was requested to be developed and implemented. A draft Procurement Delegation Schedule was prepared by the Chief Finance Officer in consultation with Health Corporate Network (HCN) and the Community Services Procurement Directorate (CSPD). In January 2014 the Office of the Chief Procurement Officer was established. Subsequently, the Chief Procurement Officer (CPO) has been involved in the development of these delegations. The Procurement Delegation schedule was tabled and endorsed for implementation by the Senior Health Executive Forum (SHEF) in April 2014. The Procurement Delegation framework has been developed in accordance with the revised thresholds issued by the SSC.

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IMPLEMENTATION The Office of the Chief Procurement Officer will maintain ownership of the Schedule. The Chief Procurement Officer will review the Procurement Delegation Schedule on an annual basis to ensure that:

Tier allocation is effective in providing adequate oversight AND allows for efficient process progression; and

Thresholds are adequate. The Office of the Chief Procurement Officer is responsible for communicating the new Procurement Delegation Schedule and ensuring WA Health officers are adequately trained. The Chief Procurement Officer is assigned accountability to ensure compliance with the attached Procurement Delegation Schedule. Professor Bryant Stokes A/DIRECTOR GENERAL DEPARTMENT OF HEALTH WA

This information is available in alternative formats for a person with a disability.

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Procurement Delegation Schedule

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WA Health - Procurement1 Delegation Schedule

Procurement Values2 $1 - $20,000

(Direct Source) $20,001 - $50,000

(Verbal Quotes) $50,001 - $250,0003

(Written Quotes)

$250,001 - $1m

(Public Tender) >$1m - $5m

(Public Tender) >$5m

(Public Tender)

Approve Procurement Business Case Not Applicable Not Applicable Not Applicable Tier 3 Tier 2 Tier 1 (a) or (b)

Initiate a Purchase

(Endorse Client Request Form) Not Applicable Tier 4 Tier 3 Not Applicable Not Applicable Not Applicable

Approve Procurement Plan Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Tier 1 (a) or (b)

Approve Request (Quote or Tender) for release to advertise

Not Applicable Not Applicable Tier 4 Tier 3 Tier 3 Tier 3

Approve Evaluation Report Tier 5

(document decision) Tier 4

(document decision) Tier 3 Tier 3 Tier 2 Tier 1 (a) or (b)

Approve Negotiation Plan

(for preferred Respondent negotiations) Not Applicable Not Applicable Tier 3

(not mandatory) Tier 3

(not mandatory) Tier 2

(not mandatory) Tier 1 (a) or (b)

Sign Award of Contract or Decline of offers letters

Not Applicable Not Applicable Tier 3 Tier 3 Tier 2 Tier 1 (a) or (b)

Advise unsuccessful Respondents Tier 5

(if quotes sought) Tier 4 Tier 3 (sign unsuccessful letter)

Tier 3 (sign unsuccessful letter)

Tier 2 (sign unsuccessful letter)

Tier 1 (a) or (b) (sign unsuccessful letter)

Publish contract award details on TendersWA

Not Applicable Not Applicable Delegated Officer Delegated Officer Delegated Officer Delegated Officer

Approve Contract Management Plan

(and annual review of Contract Management Plans)

Not Applicable Not Applicable Not Applicable Not Applicable Tier 2 Tier 1 (a) or (b)

Exercise price variations in accordance with contract

Not Applicable Tier 4

(if applicable) Tier 4 Tier 3 Tier 3 Tier 3

Exercise or Decline extension options and contract variations (including price variations not in line with contract)

Not Applicable Tier 4

(if applicable) Tier 3 Tier 3

Tier 2 Tier 1 (a) or (b)

1 These delegations apply to all aspects of the State Supply Commission Act be that goods and/or services procurement, information technology and community services. These delegations also apply to procurements undertaken under section 21(a) or (c) of the Hospital and Health Services Act 1927 (WA) that do not exceed a total cost of $2 million. It is important that officers check whether there is a Common Use Arrangement (CUA) or existing WA Health contract before proceeding. Where a CUA exists officers are required to follow the process set out in the buying rules (see Buyers Guide). Information regarding Health contracts can be found here. Note that, where a purchase exceeds $20,000, a Client Request Form or Business Case should be used to approve the purchase even when purchasing under a CUA. 2 Thresholds are based on the ongoing need, not one off purchases. They are also GST Inc. 3 Professional Consultancy Services greater than $50k must be sent to the Office of the Chief Procurement Officer for approval prior to submission to DPC (See Premiers Circular ) and prior to submission to Health Corporate Network. Note – not all requests for Professional Services are required to be forwarded to HCN. The appropriate pathway is based on the estimated Total Contract Value. 4 Department of Finance involvement is not required when purchasing under a CUA, unless specified in the Buying Rules of the CUA.

Professor Bryant Stokes A/Director General

Department of Finance involvement is required for ALL ICT Goods and Service purchases above $50,000 and non-ICT Goods and Services purchases above $250,000 (except Community Services)4

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WA Health - Exemption from State Supply Commission Policy4 Schedule

Exemption Value5 $1 - $20,000

(Direct Source) $20,001 - $50,000

(Verbal Quotes) $50,001 - $250,000

(Written Quotes) $250,001 - $1m

(Public Tender) $1m - $5m

(Public Tender) >$5m

(Public Tender)

Exemption from competitive quotation or open tender requirements (inc PSP)6

Not Applicable

Chief Procurement Officer (for all commercial Goods & Services including

ICT)

Director Subacute Community & Aged Care Directorate (formerly Community Services Directorate) (for Community

Services under DCSP Policy)

Chief Procurement Officer (for all commercial Goods & Services including

ICT)

Director Subacute Community & Aged Care Directorate (for Community

Services under DCSP Policy)

Chief Procurement Officer (for all commercial Goods & Services including

ICT)

Director Subacute Community & Aged Care Directorate (for Community

Services under DCSP Policy)

Chief Procurement Officer

Chief Procurement Officer

Approval for the naming of proprietary products in Requests

Not Applicable Not Applicable

Chief Procurement Officer (for all commercial Goods & Services including

ICT)

Director Subacute Community & Aged Care Directorate (for Community

Services under DCSP Policy)

Chief Procurement Officer (for all commercial Goods & Services including

ICT)

Director Subacute Community & Aged Care Directorate (for Community

Services under DCSP Policy)

Chief Procurement Officer

Chief Procurement Officer

Approval for contract periods exceeding 5 years7 Not Applicable Not Applicable Tier 1 (a) Tier 1 (a) Tier 1 (a) Tier 1 (a)

Exemption from minimum open tender advertising period (except AUSFTA covered procurements)

Not Applicable Not Applicable Not Applicable

Chief Procurement Officer (for all commercial Goods & Services including

ICT)

Director Subacute Community & Aged Care Directorate (for Community

Services under DCSP Policy)

Chief Procurement Officer

Chief Procurement Officer

Exemption from publishing contract award information on TendersWA for procurements over $50,000

Not Applicable Not Applicable

Chief Procurement Officer (for all commercial Goods & Services including

ICT)

Director Subacute Community & Aged Care Directorate (for Community

Services under DCSP Policy)

Chief Procurement Officer (for all commercial Goods & Services including

ICT)

Director Subacute Community & Aged Care Directorate (for Community

Services under DCSP Policy)

Chief Procurement Officer

Chief Procurement Officer

Exemption from the development of a procurement plan or contract management plan for procurements over $5 million

Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Chief Procurement Officer

4 See State Supply Commission website for more information on grounds for exemption. Exemptions templates can be found here for community services and here for commercial goods and/or services. 5 All exemption values are GST Inc. 6 This includes scope variations.

The Delegated Officer must be a Public Servant with sufficient system access. 7 Exemptions for contract periods exceeding 5 years must be supported by the Chief Procurement Officer and the Assistant Director General, Purchasing and System Performance prior to approval.

Department of Finance support is required for ALL ICT Goods and Services exemptions above $50,000 and non- ICT Goods and Services exemptions above $250,000 (except

Community Services)

All exemptions from Common Use Arrangements (CUA) must first be endorsed by the Assistant Director, Policy and Education, Office of the Chief Procurement Officer prior to submission to the Department of Finance.

Professor Bryant Stokes, A/Director General

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WA Health – Grant Delegation Schedule

Threshold Value8 $1 - $250,000 $250,001 - $1m $1m - $5m >$5m

Endorse completed Request and Grant Management Plan.

Director Subacute Community & Aged Care Directorate (formerly Community Services Procurement Directorate) (for Community

Services under DCSP Policy)

Assistant Director, Office of the Chief Procurement Officer (for all other grants)

Director Subacute Community & Aged Care Directorate (for Community Services

under DCSP Policy)

Assistant Director, Office of the Chief Procurement Officer (for all other grants)

Chief Procurement Officer

Chief Procurement Officer

Approve Grant Agreement Request and Grant Management Plan.

Tier 4 Tier 3 Tier 2

Tier 1(a) or (b)

Sign completed Grant Agreement. Tier 3 Tier 3 Tier 2 Tier 1 (a) or (b)

Professor Bryant Stokes Effective Date: 11 May 2015

A/Director General

8 Grant Values are based on the total value (not individual grants) of the Grant Program and are GST Inc. The Delegated Officer must be a Public Servant with sufficient system access.

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Positions By Tier

Tier North Metropolitan Health Service (NMHS) PathWest South Metropolitan Health Service (SMHS)

1(a) 1(b) Chief Executive 1(b) Chief Executive (NMHS) 1(b) Chief Executive 1(b)

2 Executive Directors, Director Office of the Chief Executive Chief Pathologist/Executive Director Area Director Clinical Services, Area Director Nursing and Midwifery, Director of Strategic Issues, Executive Directors, Group General Managers, Area Director Corporate Services, Area Director, Infrastructure, Facilities Management & Health Services Support

3 Ambulatory Care Program Director, Area Fleet Manager, Clinical Directors, Clinical Lead - Clinical Rehabilitation Services, Clinical Lead Oral Health Improvement Unit, Contract Manager Midland Health Campus, Contract Manager Joondalup Health Campus, Deputy Executive Director NHMS MH, Deputy Nurse Co-Directors, Directors (see T3 Note), Executive Director Medical Services, Executive Director Midwifery Nursing and Patient Support Services, Executive Director of Nursing Services SCGOPHCG, General Manager Dental, Head of Department Anaesthetics, Managers (see T3 Note), Medical Co-Directors, Medical Directors (see T3 Note), Nurse Co-Directors, Nurse Directors SCGOPHCG, Nursing and Midwifery Directors, Office Manager Executive Director SCGOPHCG, Principal Nursing and Midwifery Director, Program Director – Adult Mental Health Program, Project Director Redevelopment; QEII Medical Centre Trust Business Manager; QEII Medical Centre Trust Project Director, Redevelopment Project Coordinators and Senior Project Coordinator Redevelopment.

General Managers, Directors, Operations Manager

Deputy Executive Director RPG, Directors Clinical Services, Directors of Nursing &/or Midwifery &/or Patient Support, Service/Medical Co-Directors, Corporate Directors, Area Manager Occupational Safety and Health, Area Manager Mental Health Strategy, Corporate/Campus Managers, General Manager Bentley Health Service, Senior Registered Nurse Level 8-10, Manager Adult Community and Allied Health Service Rockingham Peel, Area Allied Health Advisor Public Health, Director Allied Health, Operations/Business Managers, Director of Safety and Quality

4 Campus Facilities Managers, Chief Pharmacist, Chief Radiographer / Ultrasonographer, Clinical Manager Community Midwifery, Clinical Midwifery Consultant Community Midwifery Program, Clinical Nurse Managers, Clinical Product Advisor, Consultant Clinical Psychologist, Coordinators (see T4 Note), Directors (see T4 Note), Facilities Manager, Finance and Business Officers, Head of Department – Clinical/Corporate/Divisional, Managers (see T4 Note), Medical Administrator, Medical Director of WA Policy & Research, Nurse Directors, Occupational Health & Safety Officer, Policy and Project Officer (SQ&P), Program Managers, Project Coordinators, Project Managers, Project Officers, Psychiatrist Mother Baby Unit, Public Health Physician, Senior Finance and Business Officer, Senior Policy Officer Women’s Health Policy, Senior Project Manager - Health Reform, Senior Project Officer Moorditj Djena, Senior Registered Nurse Levels 1-7 and 3-7, Senior Registered Nurse/Midwife Levels 1-7, Service Coordinator – Mental Health Emergency Response Line (MHERL), Service Manager, State Forensic Mental Health Service (SFMHS), Senior Workforce Information Analyst, Workforce Planning Consultants.

Corporate Managers (IS, Finance, HR, Resources and Quality, Heads of Department)

Area Allied Health Coordinators, Area Managers, Principals, Seniors in Charge, Coordinators Corporate Department, Coordinators of Nursing, Program Managers, Senior Registered Nurses Levels 1-7, Heads of Department – Clinical/Directorate/Corporate, Managers – Corporate Operations Group, Area Security Manager, Area ICT Manager, Public Health Manager, Public Health Coordinator, Public Health Medical Officers, Public Health Clinical Nurse Manager, Coordinator Finance Performance and Reporting – ImagingWest, Information Technology Manager – ImagingWest, PACS Manager – ImagingWest, Quality Manager-ImagingWest, Deputy Director Clinical Services

Tier WA Country Health Service (WACHS) Child and Adolescent Health Service (CAHS)

1(a) 1(b)

Chief Executive (1b) Chief Executive 1(b)

2 Chief Operating Officer Northern and Remote, Chief Operating Officer Southern, Executive Director Clinical Reform, Executive Director Corporate Services, Executive Director Medical Services, Executive Director Nursing and Midwifery, Executive Director Primary Health Engagement

Executive Directors - PCH Commissioning/Child and Adolescent Community Health/Child and Adolescent Mental Health Service/Princess Margaret Hospital

3 Regional Director Director – Child and Adolescent Community Health, Director – Child and Adolescent Mental Health Service, Director - Aboriginal Health, Director – Finance and Business, PCH Project Directors - Corporate and Facilities Management/Clinical/ ICT/Support Services/Workforce/Operational Readiness/Infrastructure, Director – Paediatric Medicine Clinical Care Unit, Director – Surgical Services Clinical Care Unit

4 Area Chief Medical Imaging Consultant, Area Director Aged Care, Area Director Mental Health Area, Director Population Health, Area Director Planning and Infrastructure, Coordinator Nursing and Midwifery, Director Business and Performance Analysis, Director Corporate Services, Director Finance, Director Human Resource Operations, Director Human Resource Strategy, Director Integrity, Director ICT, Director Medical Education Unit, Director Medical Services, Director Nursing Workforce and Reform, Director Population Health, Director Safety, Quality and Performance, Manager Aboriginal Health Service Planning, Manager Biomedical Engineering, Manager Contract Management, Manager Executive Services, Manager Planning and Evaluation, Nurse Director; Operations Manager, Project Director Southern Inland Health Initiative

Finance and Business Officers, Heads of Department – Clinical, Heads of Department – Corporate, Senior Registered Nurse Levels 1 to 7, Director Commercial and Contracting PCH Project, Manager Finance PCH Project, Nursing Director - Paediatric Medicine Clinical Care Unit/ Surgical Services Clinical Care Unit No L

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Department of Health

Tier Reform System and Corporate

Governance Clinical Services and

Research System Policy and Planning

Purchasing and System Performance

Public Health Office of the Director General and

Office of the Chief Psychiatrist

1(a) 1(b)

Director General 1(a) Deputy Director General 1(b) Director General 1(a)

2 Executive Director, ICT and Corporate Network Services

Assistant Director General, System and Corporate Governance

Assistant Director General, Clinical Services and Research

Assistant Director General, System Policy and Planning

Assistant Director General, Purchasing and System Performance

Assistant Director General, Public Health

Director of Director General’s Office, Chief Psychiatrist

3 Chief Information Officer, General Manager Health Corporate Network, Group Director Health Supply Network

Chief Procurement Officer, Directors

Chief Health Professions Officer, Chief Nursing and Midwifery Officer, Executive Director, Chief Medical Officer, Chief Dental Officer

Executive Director Office of Mental Health, Director Workforce, Director Aboriginal Health, Director Health Networks, Director Community Services Procurement, Director Aged Care Policy, Manager Strategic Support Unit, Director Health Service Improvement Unit, Director Cancer and Palliative Care Network, Manager Inter-Governmental Relations

Executive Director, Group Directors Chief Health Officer, Directors, Principal Epidemiologist, Program Manager Data Linkage Branch

Director Communications, Director Corporate Services

4 Directors Assistant Directors, Managers, Senior Legal Advisors

Managers, Assistant Directors, Medical Advisors

Managers, Program Managers Directors Managers, Medical Advisors, Chief Pharmacist

Managers

Note: A Tier 5 position is defined in accordance with the WA Health Financial Delegations as a senior officer who generally reports directly to a Tier 4 position or higher.

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Procurement Delegation Schedule Business Rules

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Updated 28 August 2015 Page 1 of 2

Procurement Delegation Schedule Business Rules

Authority is to be exercised in accordance with the following principles:

1. These delegations supersede any previous procurement or contract delegations. 2. Delegated Officer refers to a Public Sector Officer with sufficient system access. 3. Authorised Officers are not to exercise their authority where a conflict of

interest arises (perceived or actual), or a personal benefit is conferred upon them. In such situations, the authority must be escalated to the next Authorised Officer, unless otherwise managed in accordance with the WA Health Managing

Conflicts of Interest Policy and Guidelines. 4. Authorised Officers are NOT to sub-delegate their authority. 5. Authorised Officers are NOT to sign or exercise authority on behalf of

another person. 6. Authorised Officers are to act in their own capacity, not under coercion. 7. Authorised Officers are to exercise authority with due care and attention, and

within the limitations of applicable legislative and policy requirements inclusive of the State Supply Commission Act 1991 and State Supply Commission Policies and the Delivering Community Services in Partnership Policy.

8. Authorised Officers are to exercise authority within their tier structure specified in the Procurement Delegation Schedule. If a variation would take the total contract value beyond the delegated authority of an Authorised Officer, the authority is to be exercised by another Authorised Officer with sufficient delegated authority.

9. Authorised Officers are to document the exercise of authority in writing specifically; the date, name and position are to be clearly legible next to the signature of the Officer. The type of document used must be in line with the Procurement Processes set by the Office of the Chief Procurement Officer.

10. Estimated Contract Values (ECV) are based on the ongoing need, not one off purchases, they are also inclusive of GST.

11. The Authorised Officer approving payments MUST NOT be the person who ordered the good and/or service.

12. Whole of Health (aggregated) procurement processes are to be signed off by: the appropriate Health Supply Network Authorised Officer for Commercial

Goods, Services and/or ICT contracts; the appropriate Department of Health Authorised Officer for Community

Services contracts. 13. Tier structures may be amended following consultation and approval from Office

of the Chief Procurement Officer. 14. Health Supply Network provides procurement support for all commercial process

between $50,000 and $250,000. 15. Where required, Negotiation Plans are to be approved by the Delegated Officer

prior to the commencement of preferred respondent negotiations. The requirement for Negotiation Plans for panel arrangements is based on the estimated value of the whole panel arrangement, rather than the estimated value of that arrangement for the individual supplier.

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Updated 28 August 2015 Page 2 of 2

16. Approval to exercise or decline price variations that are in accordance with the contract, and exercise or decline extension options and contact variations (including price variations that are not in accordance with the contract) must be obtained by the Authorised Officer based on the total contract value, not the value of the extension option or contract variation.

17. Evaluation Reports for all procurement processes (excluding CUA purchases which do not contain a services component) valued between $250,000 and $5 million must be submitted to the Health Supply Contracts Committee for review, prior to sign off by the Authorised Officer.

18. Procurement Plans and Evaluation Reports for all procurement processes valued over $5 million must firstly be submitted to the Health Supply Council, then the State Tenders Review Committee or Community Services Procurement Review Committee for review prior to sign off by the Authorised Officer.

19. Client Request Forms (for purchases valued between $20,000 - $250,000) and Business Cases (for purchases valued over $250,000) must be completed and signed by the relevant accountable authority prior to undertaking a purchase. This requirement also applies to purchases from a Head Agreement

contract, including a Common Use Arrangement (CUA), panel, or Whole of Health contract. However this requirement does not apply when the purchase is for non-ICT goods and services, and is conducted in accordance with a “pick-and-buy” option under the Head Agreement.

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This document can be made available in alternative formats on request for a person with a disability.

© Department of Health 2015

Copyright to this material is vested in the State of Western Australia unless otherwise indicated. Apart from any fair dealing for the purposes of private study, research, criticism or review, as permitted under the provisions of the Copyright Act 1968, no part may be reproduced or re-used for any purposes whatsoever without written permission of the State of Western Australia.

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