Overview

Question 1

Accountable Authority

Answer 1

the person or group of persons responsible for, and has control over, a Commonwealth entity’s operations.

Question 2

Procurement

Answer 2

The process of acquiring goods, services, or works from external sources

Question 3

RFP (Request for Proposal)

Answer 3

A document used to solicit proposals from potential suppliers or contractors

Question 4

Vendor

Answer 4

A company or individual that supplies goods or services to an organization

Question 5

Supplier

Answer 5

A company or individual that provides products or services to another company

Question 6

Contract

Answer 6

A legally binding agreement between two or more parties that outlines the terms and conditions of their business relationship

Question 7

Scope of Work

Answer 7

A detailed description of the work to be performed under a contract

Question 8

Terms and Conditions

Answer 8

The specific provisions, rules, and requirements that govern a contract

Question 9

Purchase Order (PO)

Answer 9

A document issued by a buyer to a seller, indicating the details of a purchase transaction

Question 10

Delivery Date

Answer 10

The specified date on which goods or services are expected to be delivered

Question 11

Payment Terms

Answer 11

The agreed-upon conditions for making payments to a supplier or contractor

Question 12

Performance Bond

Answer 12

A financial guarantee provided by a contractor to ensure they fulfill their obligations under a contract

Question 13

Change Order

Answer 13

A written request to modify the scope, terms, or conditions of a contract

Question 14

Force Majeure

Answer 14

An unforeseeable event beyond the control of the parties that prevents them from fulfilling their contractual obligations

Question 15

Liquidated Damages

Answer 15

A predetermined amount of money agreed upon in a contract that will be paid as compensation for specific breaches

Question 16

Compliance

Answer 16

Adherence to legal, regulatory, and contractual requirements

Question 17

Stakeholder

Answer 17

An individual or group with an interest in the outcome of a project or contract

Question 18

Quality Assurance

Answer 18

Processes and activities designed to ensure that goods or services meet specified requirements

Question 19

Performance Evaluation

Answer 19

The assessment of a supplier or contractor’s performance against predetermined criteria

Question 20

Contract Closeout

Answer 20

The process of completing all tasks and activities necessary to officially close a contract

Question 21

Accountable Authority

Answer 21

Written instructions issued by an accountable authority to provide direction and guidance to officials on finance law and regulations

Question 22

AusTender

Answer 22

The central web-based facility for publishing Australian Government procurement information, including business opportunities, annual procurement plans, and awarded contracts

Question 23

Central procurement area

Answer 23

The department or team within an entity that is responsible for issuing internal procurement advice and monitoring procurement activity

Question 24

Commonwealth entities

Answer 24

Non-corporate and corporate entities subject to the PGPA Act

Question 25

Commonwealth Procurement Rules

Answer 25

Rules issued by the Minister for Finance under the PGPA Act, which officials from relevant entities must comply with when performing procurement duties

Question 26

Conflict of interest declaration

Answer 26

A form where individuals disclose any real, apparent, or potential conflicts of interest that may arise during their employment

Question 27

Deed of confidentiality

Answer 27

A legally binding commitment to keep certain shared information confidential and use it only as intended within a contract

Question 28

Delegate

Answer 28

An official with statutory authority, granted through a delegation instrument, to make specific decisions or perform particular functions

Question 29

Dynamic Sourcing for Panels (DS4P)

Answer 29

Functionality within the AusTender website that enables government buyers to source goods or services from panels using a standardized approach

Question 30

Key performance indicators (KPIs)

Answer 30

Measurable and verifiable metrics that indicate the level of performance by the supplier against the outcomes of the contract

Question 31

Resource Management Guides (RMG)

Answer 31

A series of policy documents that detail policies on resource management, forming part of the Government Resource Management Framework

Question 32

Service level agreements (SLAs)

Answer 32

Documented levels of service to be provided by the supplier, typically measured in terms of quality, availability, or responsiveness

Question 33

Statement of Tax Record (STR)

Answer 33

Required for contracts over $4 million under the Black Economy Procurement Connected Policy, ensuring suppliers hold a valid and satisfactory STR during the contract

Question 34

Value for Money

Answer 34

The consideration of relevant financial and non-financial costs and benefits, including quality, fitness for purpose, experience, flexibility, environmental sustainability, and whole-of-life costs when evaluating submissions

Question 35

Contract

Answer 35

A legally enforceable agreement between two or more parties that outlines their rights and obligations in performance of that contract. It requires an offer, acceptance, and consideration. Parties must intend to be legally bound, the contract terms must be certain, and each party must have the capacity to enter into the contract.

Question 36

Contract Management

Answer 36

Contract management involves activities undertaken after a contract has been signed or commenced. Its purpose is to manage contract performance and achieve agreed outcomes. It ensures all parties fulfil their obligations to deliver contract objectives. Focus areas include timely delivery, performance management, continuous improvement, system integration, and innovation implementation. Consistent and active contract management ensures satisfactory supplier performance, informed stakeholders, and adherence to contract requirements, resulting in anticipated value for money.

Question 37

Contract Governance

Answer 37

Definition: The establishment of mechanisms, arrangements, systems, processes, decision-making, and reporting to engage stakeholders and oversee the contract. Example: Setting up a project management committee to review contract progress, make important decisions, and ensure stakeholders are involved in key discussions.

Question 38

Performance Management

Answer 38

Definition: The measurement, monitoring, and assessment of performance against agreed-upon measures to identify and address any issues. It involves tracking deliverables and ensuring they meet contract outcomes. Example: Regularly evaluating a supplier's performance based on quality, timeliness, and customer satisfaction metrics to ensure they are meeting contractual expectations.

Question 39

Supplier Relationship Management

Answer 39

Definition: The implementation of collaborative engagement mechanisms with the contractor to foster a positive and effective working relationship. Example: Holding regular meetings with the supplier to discuss project updates, address concerns, and identify opportunities for improvement and innovation.

Question 40

Contract Administration

Answer 40

Definition: The administrative activities performed to support day-to-day contract operations, meet record-keeping requirements, and maintain transparency through an audit trail. Example: Documenting all contract-related communications, tracking changes or amendments, and ensuring proper documentation of financial transactions for audit purposes.

Question 41

Accountable Authority

Answer 41

Definition: The authority responsible for governing an entity and promoting the proper use of public resources under the PGPA Act. Example: Issuing instructions to officials and entering into contracts or agreements related to the entity's affairs.

Question 42

Contract Management

Answer 42

Process to ensure parties uphold their obligations in a legally enforceable contract. Example: Monitoring compliance with contract terms and managing legal obligations.

Question 43

Contract Requirements

Answer 43

Definition: Additional policy, legislative, and regulatory obligations relevant to a contract. Example: Ensuring compliance with privacy, work health and safety, confidentiality, tax, security, quality, and records management requirements.

Question 44

Ethical Behavior in APS

Answer 44

Definition: APS employees must adhere to high ethical standards outlined in the APS Values, APS Employment Principles, and the APS Code of Conduct. Example: Following the guidelines to ensure public confidence and avoid legal consequences.

Question 45

Contracted Staff Obligations

Answer 45

Definition: Contracted staff managing contracts must comply with Commonwealth laws, policies, declare conflicts of interest, and avoid fraudulent behaviour. Example: Upholding contract conditions to prevent legal consequences and protect the interests of the entity.

Question 46

Commonwealth Contracting Suite (CCS)

Answer 46

Definition: An online suite of smart forms for preparing procurement documentation for Commonwealth contracts under $1 million. Mandatory for NCEs for procurement under $200,000. Encouraged for CCEs. Contracts created through CCS are short, simplified, and easy to understand. Example: CCS makes contract management easier with plain English terms and simplified obligations.

Question 47

Entity's Standard Form Contract

Answer 47

Definition: Contract template used by larger entities when the CCS is not applicable. Reflects the entity's procurement approach and requires regular updates. Contextual advice available within the entity. Example: Standardized contract template tailored to the entity's needs, ensuring consistency in procurement and compliance with legislation and policy.

Question 48

Digital Sourcing Model Contract

Answer 48

Definition: Template suite provided by the DTA for sourcing ICT products and services not covered by a whole-of-government arrangement. Example: Designed to streamline the procurement process, these templates are available on the DTA website. Contact the DTA for contextual contract management advice.

Question 49

Bespoke Purpose Designed Contract

Answer 49

Definition: Customized contract developed to address unique requirements, risks, or specialized needs of an entity. Involves input from legal, procurement, and technical specialists. Often requires assistance from specialist advisers for contract management. Example: Tailored contract created for high-risk or specialized projects that cannot be covered by standard templates.

Question 50

Standing Offer Arrangements (Panels)

Answer 50

Definition: Pre-agreed contracts with suppliers for frequently sourced goods or services. Offers efficiencies and eliminates constant tendering. Managed by panel managers. Example: Entity issues official orders to suppliers from the standing offer arrangement. Value for money must be considered for each purchase.

Question 51

Coordinated Procurement Arrangements (Whole of Government)

Answer 51

Definition: Collective procurement arrangements to leverage the Australian Government's purchasing power and improve consistency and savings. Established by lead entities like the Department of Finance. Varying contract management processes. Mandatory for non-corporate entities, opt-in for corporate entities. Example: Government-wide contracts or standing offers for efficient procurement across entities. Department of Finance website provides a list of these arrangements.

Question 52

Cooperative Procurement Arrangements

Answer 52

Definition: Joint procurement by multiple entities with similar requirements. Can be achieved through a joint approach or piggybacking on an existing contract. Maximizes resource utilization, reduces administrative processes, and improves prices and service arrangements. Alignment of requirements is essential for value for money. Example: Multiple entities collaborate to procure goods/services jointly, reducing administrative burden and costs for each entity. Careful alignment of requirements ensures value for money.