Case study: Procurement governance uplift for a leading Australian University

Creating a more consistent and practical approach to procurement 

A leading Australian university engaged RSM Australia to review and strengthen its procurement framework and support greater consistency in how procurement was undertaken across the organisation.

The university operates in a large and diverse procurement environment, with activities ranging from routine purchasing to complex and strategic sourcing. It needed a framework that could accommodate different procurement activities, values and levels of risk, while giving staff clearer guidance on how procurement requirements should be applied in practice. 

RSM worked closely with the university to:

• review its existing procurement arrangements
• understand how procurement was being undertaken across different areas of the organisation 
• identify opportunities for improvement. 

This work informed the development of an overarching procurement framework and supporting suite of tools and templates.  

Bridging the gap between policy and procurement practice 

For a large and complex organisation, having procurement policies in place does not necessarily provide staff with all the guidance they need to navigate different sourcing activities and procurement decisions.

The university operates across a broad and diverse procurement environment, spanning construction and capital works, IT and ICT, professional and consulting services, as well as goods and other services. These activities range from routine and transactional purchasing to complex and strategic procurements, requiring an approach that could accommodate different categories, values, risks and levels of complexity. 
 

"The objective was not to create another layer of policy, but to provide clear guidance on how procurement requirements should be applied in practice across different types of procurement.” 
Tranquility Clinton, Partner – Risk Advisory & National Lead Probity, Procurement and Integrity Services

This included providing greater clarity around: 

• determining the appropriate procurement and market approach
• procurement planning and sourcing strategy
• market engagement and communications with suppliers
• evaluation and value-for-money assessment
• negotiation and procurement recommendations
• contract award and supplier debriefing
• ongoing contract and supplier management.

The framework also needed to incorporate the principles that underpin sound procurement, including value for money, open and fair competition, accountability, risk management, transparency and sustainable procurement.

An end-to-end procurement framework

RSM reviewed the university's existing policies, procedures and practices and engaged with key stakeholders to understand where greater clarity and consistency could be introduced.

This was followed by the development of an overarching procurement framework covering the full lifecycle – from planning and sourcing strategy to market engagement, evaluation, negotiation, contract award and ongoing contract management.

A key consideration was that procurement is not one-size-fits-all. The framework recognised that different approaches may be appropriate depending on the nature, value, complexity and risk of the procurement, while still providing a consistent approach across the organisation.

Probity was also considered throughout the framework as part of good procurement practice, rather than as a standalone activity. This included guidance around fair and consistent treatment of suppliers, conflicts of interest, confidentiality, transparent evaluation, record keeping and ensuring procurement decisions could be appropriately supported and documented.  

Turning the framework into practice

Importantly, the engagement did not stop with the overarching framework.

RSM developed a suite of more than 15 procurement tools and artefacts to help translate the framework into day-to-day procurement activity.

The suite included tools and templates supporting:

• Different levels of procurement, from routine and transactional activities to complex and strategic procurements.
• Planning and sourcing, including sourcing strategy, sourcing recommendation and risk management documentation.
• Approaches to market, including EOI, RFQ and RFP documentation.
• Evaluation and decision-making, including evaluation plans and reports.
• Governance and probity, including exemption requests, probity plans and checklists, conflict-of-interest declarations and registers, confidentiality documentation and probity issue registers.
• Supplier and contract activities, including supplier debriefing and documentation supporting goods, services and works procurement.   

Providing the framework alongside the supporting templates was an important part of the approach. Staff had both the overarching guidance and fit-for-purpose documentation to support different procurement activities and levels of complexity.

A stronger foundation for procurement  

The university now has an overarching framework that brings its procurement requirements, processes and supporting tools together. The framework provides clearer guidance on how different procurement activities should be approached, while allowing the level of process and oversight to reflect the value, complexity and risk of the procurement.

The suite of templates supports this in practice, providing fit-for-purpose documentation for activities ranging from routine and transactional procurement through to complex and strategic sourcing.

Together, the framework and supporting tools bridge the gap between procurement policy and procurement practice, providing a more consistent foundation for planning, sourcing, evaluation, decision-making and contract management.

At the same time, the approach incorporates the principles that support robust and defensible procurement, including value for money, fair competition, transparency, accountability and appropriate management of procurement risk.

 Key takeaway 

Effective procurement governance is not achieved through policy alone. Organisations also need practical guidance, processes and tools that allow those responsible for procurement to understand what is expected and apply those requirements consistently.

This engagement demonstrates how a procurement governance review can be used not simply to identify gaps, but to translate better practice into a framework that supports day-to-day procurement activity.

For a confidential discussion on your probity and procurement requirements please connect with our
Probity advisory and assurance services team.