Operational Directive

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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

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Procurement

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WA Health - Procurement

1

_{Delegation Schedule}

Procurement Values

2

$1 - $20,000

(Direct Source)

$20,001 - $50,000

(Verbal Quotes)

$50,001 - $250,000

3

(Written Quotes)

$250,001 - $1m

(Public Tender)

>$1m - $5m

(Public Tender)

>$5m

(Public Tender)

Approve Procurement Business Case

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

Approve Procurement Plan

Not Applicable

Tier 1 (a) or (b)

Approve Request (Quote or Tender) for

release to advertise

Not Applicable

Tier 4

Tier 3

Approve Evaluation Report

_{(document decision)}

Tier 5

_{(document decision)}

Tier 4

Tier 3

Tier 2

Tier 1 (a) or (b)

Approve Negotiation Plan

(for preferred Respondent negotiations)

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

Tier 3

Tier 2

Tier 1 (a) or (b)

Advise unsuccessful Respondents

_{(if quotes sought)}

Tier 5

Tier 4

_{(sign unsuccessful letter)}

Tier 3

_{(sign unsuccessful letter)}

Tier 3

_{(sign unsuccessful letter)}

Tier 2

_{(sign unsuccessful letter)}

Tier 1 (a) or (b)

Publish contract award details on

TendersWA

Not Applicable

Delegated Officer

Approve Contract Management Plan

(and annual review of Contract Management

Plans)

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

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 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.

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

Professor Bryant Stokes,

A/Director General

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WA Health - Exemption from State Supply Commission Policy

4

_Schedule

Exemption Value

5

$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 Community Services

Procurement Directorate (for

Community Services under DCSP Policy)

Chief Procurement Officer (for all

commercial Goods & Services including

ICT)

Director Community Services

Procurement Directorate (for Community

Services under DCSP Policy)

Chief Procurement Officer (for all

commercial Goods & Services including

ICT)

Director Community Services

Procurement Directorate (for Community

Services under DCSP Policy)

Chief Procurement

Officer

Chief Procurement

Officer

Approval for the naming of

proprietary products in

Requests

Not Applicable

Chief Procurement Officer (for all

commercial Goods & Services including

ICT)

Director Community Services

Procurement Directorate (for Community

Services under DCSP Policy)

Chief Procurement Officer (for all

commercial Goods & Services including

ICT)

Director Community Services

Procurement Directorate (for Community

Services under DCSP Policy)

Chief Procurement

Officer

Chief Procurement

Officer

Approval for contract periods

exceeding 5 years

7

Not Applicable

Tier 1 (a)

Exemption from minimum

open tender advertising

period (except AUSFTA

covered procurements)

Not Applicable

Chief Procurement Officer (for all

commercial Goods & Services including

ICT)

Director Community Services

Procurement 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

Chief Procurement Officer (for all

commercial Goods & Services including

ICT)

Director Community Services

Procurement Directorate (for Community

Services under DCSP Policy)

Chief Procurement Officer (for all

commercial Goods & Services including

ICT)

Director Community Services

Procurement 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

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 Value

8

$1 - $250,000

$250,001 - $1m

$1m - $5m

>$5m

Endorse completed Request

and Grant Management Plan.

Director Community Services Procurement

Directorate (for Community Services under

DCSP Policy)

Assistant Director, Office of the Chief

Procurement Officer (for all other grants)

Director Community Services

Procurement Directorate (for Community

Services under DCSP Policy)

Assistant Director, Office of the Chief

Procurement Officer (for all other grants)

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 2

Tier 1 (a) or (b)

Professor Bryant Stokes

Effective Date: 11 May 2015

A/Director General

8

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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, Chair Women’s Health CCU, Clinical Directors, Clinical Lead Oral

Health Improvement Unit, Contract Manager, Midland Health Campus, Manager Contract Management Unit, Deputy Area Executive Director, Deputy Nurse Co-Directors, Directors (see Note 1), Executive Director of Nursing (see Note 1), Executive Directors Medical Services; General Manager Dental; Head of Department Anesthetics, Managers (see Note 1), Managers Finance and Business, Media Relations and Marketing Manager, Medical Co-Directors, Medical Directors, Nurse Co-Directors, Nurse Directors SCGOPHCG, Office Manager Executive Director SCGOPHCG, Principal Nursing and Midwifery Director, Project Director; QE11MC Trust Business Manager, Contract Manager of Joondalup Health Campus Contract

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 (see Note 2), Chief Pharmacist, Chief Radiographer / Ultra sonographer,

Clinical Consultant Community Midwifery, Clinical Nurse Managers (see Note 2), Consultant Clinical Psychologist, Coordinators (see Note 2), Directors (see Note 2), Facilities Manager, Finance and

Business Officers, Head of Department – Clinical or Divisional or Corporate, Human Resource

Consultants, Manager – Departmental or Divisional or Corporate, Medical Administrator, Medical Director of WA Policy & Research, Nurse Director, Occupational Health & Safety Officer, Performance Review and Audit Coordinator, Policy and Project Officer (SQ&P), Program Manager, Project Coordinators (see Note 2), Project Manager (see Note 2), Project Officers (see Note 2), Psychiatrist Mother Baby Unit, Public Health Physician, Risk Management Coordinator (see Note 2), Senior Finance and Business Officer; Senior Project Coordinator (see Note 2), Senior Project Manager (see Note 2), Senior Registered

Nurse or Midwife Levels 1 to 7, Service Coordinator – Mental Health Emergency Response Line

(MHERL), Service Manager, State Forensic Mental Health Service (SFMHS), Statewide Coordinator Aboriginal Maternity Services Support Unit (AMSSU)

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, Chair – Paediatric Medicine Clinical Care Unit, Chair – Surgical Services Clinical Care Unit, Nurse Director – Paediatric Medicine Clinical Care Unit, Nurse Director – Surgical Services Clinical Care Unit

3 Regional Director Director – Child and Adolescent Community Health, Director – Child and Adolescent Mental

Health Service, Director Perth Children’s Hospital Project, Director Aboriginal Health, Director – Finance and Business

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

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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

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Procurement

Delegation Schedule

Business Rules

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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.

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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

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