How should procurements valued below the covered procurement threshold be treated?
The core principle of value for money applies to all procurement processes, along with the accompanying principles of encouraging competition; the efficient, effective and ethical use of resources; and accountability and transparency. Procurement officials should in the first instance refer to their agency Chief Executive Instructions (or equivalent) for guidance on the specific requirements of their agency. Agencies also need to ensure that other government policies that interact with the procurement are applied. While the MPPs in Division 2 are not mandatory for procurements valued below specific thresholds, they are useful as reference benchmarks for procedures for meeting the requirements of Division 1 of the CPGs. Agencies should ensure that they undertake the most appropriate procurement method to achieve value for money.
