THIRD PARTY PROCUREMENT

Principles

1. Third party procurements occur where an entity procures on behalf of a third party (such as a state government entity or government business enterprise).  The Commonwealth Procurement Rules (CPRs) note that:

  • 2.8 In addition to the acquisition of goods and services by a relevant entity for its own use, procurement includes the acquisition of goods and services on behalf of another relevant entity or a third party.

2. Third party procurements also occur where an external party procures goods or services on behalf of an entity.  The CPRs note that:

  • 4.15 Procurement by third parties on behalf of a relevant entity can be a valid way to procure goods and services, provided it achieves value for money.  Relevant entities must not use third-party arrangements to avoid the rules in the CPRs when procuring goods and services.

3. Third party procurements do not reduce or mitigate an entity’s obligations to comply with Australia’s international obligations and the Public Governance, Performance and Accountability Act 2013 or the CPRs. 

4. Entities should consider early in the process how they will comply with the CPRs if procuring through a third party arrangement.

5. For the purpose of this guidance material, third party arrangements do not include supplier/sub-contractor arrangements.

Last updated: 03 January 2019