PROCUREMENT REFORM PROGRAM

250 Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (23 October 2007). With respect to 2007-08 Budget Paper 4 Volume 1—page 3.5:

(a) what are the details of Stage 1 of the program of the target entitled 'Continue the procurement reform program, including implementation of Stage 2' and what are the details of Stage 2; and

(b) what savings are expected from this reform program and when will this be realised?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations):

(a) I am advised that procurement reform in the South Australian Government is overseen by the State Procurement Board.

Cabinet endorsed a staged approach to procurement reform. Stage 1 has been completed and a formal review has been undertaken and noted by Cabinet.

The review of Stage 1 found that the key elements of the reform strategy include:

The approval of increased procurement authorities of up to $11 million to public authority chief executives. The increases mean that public authorities are able to approve the majority of their procurement transactions, rather than having to seek approval from the Board. In 2007, the number of procurement transactions requiring Board approval reduced by more than 60 per cent compared with 2005 figures. This demonstrates the capacity for more responsive decision-making and less 'red tape' within Government operations.

A significant reduction in the average time from 'Tender Close' to 'Contract Award' for contracts valued over $110,000. This measure has reduced in excess of 30 per cent in the 2006-07 financial year from the benchmark of 139 days established in 2005.

The production and launch of the Procurement Good Practice Guide developed by the Board in conjunction with the Government Reform Commission.

(b) Procurement reforms feature significantly in the red tape reductions that are being identified by agencies as their contribution to the Premier's commitment to reduce red tape by at least 25 per cent by July 2008. Further savings in relation to improved systems and the development of common use contracts will be identified and pursued by Shared Services SA, in collaboration with Contract Services and the Board, progressively over the next 24 months.