Rule 22:
Panel of suppliers
Primary requirement
- Agencies must, before establishing a panel of suppliers:
- determine the ongoing need and demand for a panel
- have the capacity and capability to manage the panel once established.
Application
- Agencies must openly advertise an opportunity to be selected for a panel of suppliers in accordance with Rule 10.
- Agencies must, in addition to the information required in the Notice of Procurement under Rule 17, include:
- the terms and conditions of supply
- the secondary procurement method/s (Rule 22.8) that will be used to award contracts to suppliers on the panel
- the period of time the panel will run for and how often it will be refreshed
- whether or not the panel is ‘open’ or ‘closed’; if open, the frequency at which it will be refreshed
- any circumstances that may lead to a supplier being removed from the panel.
- Agencies must, unless they have good reason not to:
- appoint more than one supplier to a panel
- have a developed contract management plan for the panel and discuss it with suppliers, including with any new suppliers added to the panel during the contract’s life
- provide a Panel Guide that:
- identifies appropriate methods for allocating secondary contracts (Rule 22.8) based on the anticipated size, value, and risk of contracts likely to be awarded through the panel; and
- provides clear guidelines about the secondary procurement process
- inform suppliers of the panel guides
- ensure the Panel Guide is accessible for anyone purchasing from the panel at any time.
- When the panel has been established, agencies must:
- publish a contract award notice on GETS with the names of all of the suppliers that have been appointed to the panel
- publish a list of the categories of procurement that it manages through panel contracts and the end dates for each contract.
- When purchasing from a Panel the agency must use only the secondary procurement method/s specified in the Notice of Procurement and detailed in the Panel Guide to select a supplier.
- Agencies must use competitive secondary procurement processes, unless there is a good reason not to.
- Agencies must use only the following accepted methods of secondary procurement:
- competitive quotes which could be based on the supplier’s expertise, proposed solution and/or best public value: Ask for quotes from an appropriate selection of Panel suppliers and award the opportunity to the supplier who has the right level of expertise, can offer the best public value, and deliver on time
- The request must indicate how many panel suppliers you are approaching (suppliers must not at this stage be asked to resubmit information that has already been submitted in the primary process)
- direct source, based on the best fit for purpose: A fair evaluation of all panel suppliers, which must include a best value assessment documenting (in accordance with Rule 46) how the supplier was chosen based on capacity, capability, risk, public value, and due diligence and include this information in the contract award notice
- rotation: Award opportunities to each supplier in turn provided they are able to offer good public value
- equal division of the work: Fix an upper limit for the amount of work that can be awarded to each panel supplier and award opportunities on a rotational basis. When a panel supplier reaches the upper limit, the agency chooses the next supplier from the panel
- location: Award opportunities to the panel supplier who is best able to deliver based on their location and the location of the work.
- competitive quotes which could be based on the supplier’s expertise, proposed solution and/or best public value: Ask for quotes from an appropriate selection of Panel suppliers and award the opportunity to the supplier who has the right level of expertise, can offer the best public value, and deliver on time
- Agencies must either:
- publish a contract award notice for secondary procurements when the value is $100,000 or greater, or
- report panel spend annually to the Procurement System Leader (Rule 45), where they have not published a contract award notice under point 9a, setting out:
- estimated total spend
- actual total spend
- number of contracts awarded to each supplier on the panel
- value of contracts awarded to each supplier on the panel.