Operational Directive
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1 Operational Directive Enquiries to: Will Monaghan OD number: 0533/14 A/ Phone number: Date: 11 May 2015 Supersedes: N/A File No: F-AA 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 in consultation with Health Corporate Network (HCN) and the Community Services Procurement Directorate (CSPD). In January 2014 the Office of the was established. Subsequently, the (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 The Procurement Delegation framework has been developed in accordance with the revised thresholds issued by the SSC.
2 IMPLEMENTATION The Office of the will maintain ownership of the Schedule. The 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 is responsible for communicating the new Procurement Delegation Schedule and ensuring WA Health officers are adequately trained. The 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.
3 Procurement Delegation Schedule
4 WA Health - Procurement 1 Delegation Schedule 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 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 Tier 3 Tier 2 Tier 1 (a) or (b) Initiate a Purchase (Endorse Client Request Form) Tier 4 Tier 3 Approve Procurement Plan Tier 1 (a) or (b) Approve Request (Quote or Tender) for release to advertise Approve Evaluation Report Tier 4 Tier 3 Tier 3 Tier 3 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) 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 Advise unsuccessful Respondents Publish contract award details on TendersWA Approve Contract Management Plan (and annual review of Contract Management Plans) Tier 3 Tier 3 Tier 2 Tier 1 (a) or (b) 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) Delegated Delegated Delegated Delegated Tier 2 Tier 1 (a) or (b) Exercise price variations in accordance with contract 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) Tier 4 (if applicable) Tier 3 Tier 3 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. Tier 2 Tier 1 (a) or (b) Professor Bryant Stokes, A/Director General Effective Date: 11 May Professional Consultancy Services greater than $50k must be sent to the Office of the 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.
5 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 (for all Procurement Directorate (for Community (for all (for all Approval for the naming of proprietary products in Requests (for all (for all Approval for contract periods exceeding 5 years 7 Tier 1 (a) Tier 1 (a) Tier 1 (a) Tier 1 (a) Exemption from minimum open tender advertising period (except AUSFTA covered procurements) Exemption from publishing contract award information on TendersWA for procurements over $50,000 (for all (for all (for all Exemption from the development of a procurement plan or contract management plan for procurements over $5 million All exemptions from Common Use Arrangements (CUA) must first be endorsed by the Assistant Director, Policy and Education, Office of the prior to submission to the Department of Finance. 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) Professor Bryant Stokes, A/Director General Effective Date: 11 May 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 must be a Public Servant with sufficient system access. 7 Exemptions for contract periods exceeding 5 years must be supported by the and the Assistant Director General, Purchasing and System Performance prior to approval.
6 WA Health Grant Delegation Schedule Threshold Value 8 $1 - $250,000 $250,001 - $1m $1m - $5m >$5m Endorse completed Request and Grant Management Plan. Procurement Directorate (for Community Services under DCSP Policy) Assistant Director, Office of the Chief Procurement (for all other grants) Assistant Director, Office of the Chief Procurement (for all other grants) 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 must be a Public Servant with sufficient system access.
7 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 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 s, 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, Performance Review and Audit Coordinator, Policy and Project (SQ&P), Program Manager, Project Coordinators (see Note 2), Project Manager (see Note 2), Project s (see Note 2), Psychiatrist Mother Baby Unit, Public Health Physician, Risk Management Coordinator (see Note 2), Senior Finance and Business ; 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) General Managers, Directors, Operations Manager Corporate Managers (IS, Finance, HR, Resources and Quality, Heads of Department) 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 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 s, 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) 2 Chief Operating Northern and Remote, Chief Operating Southern, Executive Director Clinical Reform, Executive Director Corporate Services, Executive Director Medical Services, Executive Director Nursing and Midwifery, Executive Director Primary Health Engagement Chief Executive 1(b) 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 s, Heads of Department Clinical, Heads of Department Corporate, Senior Registered Nurse Levels 1 to 7
8 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, General Manager Health Corporate Network, Group Director Health Supply Network, Directors Chief Health Professions, Chief Nursing and Midwifery, Executive Director, Chief Medical, Chief Dental 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, 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.
9 Procurement Delegation Schedule Business Rules
10 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 refers to a Public Sector with sufficient system access. 3. Authorised s 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, unless otherwise managed in accordance with the WA Health Managing Conflicts of Interest Policy and Guidelines. 4. Authorised s are NOT to sub-delegate their authority. 5. Authorised s are NOT to sign or exercise authority on behalf of another person. 6. Authorised s are to act in their own capacity, not under coercion. 7. Authorised s 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 s 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, the authority is to be exercised by another Authorised with sufficient delegated authority. 9. Authorised s 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. The type of document used must be in line with the Procurement Processes set by the Office of the. 10. Estimated Contract Values (ECV) are based on the ongoing need, not one off purchases, they are also inclusive of GST. 11. The Authorised 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 for Commercial Goods, Services and/or ICT contracts; the appropriate Department of Health Authorised for Community Services contracts. 13. Tier structures may be amended following consultation and approval from Office of the. 14. Health Supply Network provides procurement support for all commercial process between $50,000 and $250,000.
11 15. Where required, Negotiation Plans are to be approved by the Delegated 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.
12 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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