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Probity decisions should be: Probity is the evidence of ethical behaviour, and can be defined as complete and confirmed integrity, uprightness and honesty in a particular process. 1. The principles underpinning ethics and probity in Australian Government Procurement are: 2. Mechanisms for assuring probity should be applied sensibly in procurement processes, with the management of probity issues tailored to each individual process. 3. Importantly, probity should not be used to justify avoiding reasonable discussion with potential suppliers during a tender. Officials are able to discuss current tenders in the market with potential suppliers. The level of detail and formality in providing information should be appropriate to the risk of the procurement. The procurement's level of risk will inform how officials engage with potential suppliers:
PracticeApplying Probity in Procurement1. Probity provides a level of assurance to delegates, suppliers and the Commonwealth that a procurement was conducted in a manner that is fair, equitable and defensible. 2. In keeping with the probity principles, officials should:
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Identification and Management of Actual, Potential and Perceived Conflicts of Interest3. A conflict of interest arises where an official, an adviser or a supplier has an affiliation or interest that might prejudice, or be seen to prejudice, his or her impartiality. 4. Effective conflicts of interest management does not require conflicts to be avoided at all costs; rather, they must be managed appropriately. 5. Agencies should in the first instance seek to eliminate actual, potential and perceived conflicts of interest. When this is not possible (such as where it would exclude needed expertise or the conflict is so widespread as to be impossible to avoid completely), effective management strategies should be implemented. Officials must be mindful of potential conflicts of interest that might arise and must not use their position to gain or seek to gain a benefit for themselves or any other person. Officials should strive to avoid situations in which there may be actual, potential or perceived of conflicts of interest including not allowing themselves to be improperly influenced by family, personal or business relationships. Probity Experts6. External probity experts may include 'process advisers', 'probity advisers' and 'probity auditors':
Establishing Probity Roles7. Probity roles can be implemented in a number of ways. This includes using expertise from other areas of the entity, through to engaging external specialist advice. 8. External probity specialists should only be appointed where justified, and not automatically just because an open tender process is being undertaken. The decision on whether to engage an external probity specialist should weigh the benefits of receiving advice independent of the process against the additional cost involved and include consideration of whether or not skills exist within the entity to fulfil the role. Factors that will influence the appointment of an external probity specialist include:
9. Probity and, if required, the role of a probity expert can be addressed within either a tender process plan or a probity plan. It is important that the tender process plan or probity plan is carefully drafted and all parties clearly understand the role a probity expert is being engaged to perform. 10. Before the process commences, all parties should have a clear understanding about the level of assurance that the entity will be seeking from the adviser. Entities should specify whether a final sign-off is needed for the entire process, whether sign-offs should be provided at the end of specified phases of the tender process, or at particular milestones, and should clearly specify the timing and the nature of the sign-offs required. Entities should ensure that external probity experts clearly understand the nature and extent of sign-off they will be asked for, with this requirement appropriately documented, such as through the external probity expert's contract. 11. Probity experts should be independent and free from conflicts of interest, and have a sound knowledge of all relevant government policies and procedures. Sign-off by external probity experts cannot replace officials' own accountabilities and obligations in regard to the proper conduct of procurement activities. TIPS
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