Procurement and Contract Management Policy

Applicable to: Health Service Providers


This Policy assists Health Service Providers to comply with the requirements of State Supply Commission policies by outlining the minimum process, documentation and governance requirements for procurement, contract development and contract management activities undertaken by Health Service Providers. This Policy relates to the procurement of goods and services, including community services and Information and Communications Technology (ICT), and building maintenance and works. This Policy should be read in conjunction with State Supply Commission policies, the Western Australian (WA) Government’s Delivering Community Services in Partnership Policy, the WA health system Works Procurement Policy and other related policies as outlined in the Procurement Policy Framework


Type of Amendment Date of Effect Description of Amendment
Major Amendment 1 March 2017 Various, including revised policy structure.
Major Amendment 5 October 2017 For ICT procurements, a PBC may now be required upon direction by the Category Director, HSS. Other minor amendments to clarify application of policy.
Major Amendment 5 July 2018 The requirement for procurements from $50,001 to $250,000 to be facilitated by HSS has been revised to refer to facilitation by the relevant Procurement Support Function, being either HSS or other procurement unit for the business. References to ‘Authorisations Schedule’ have been replaced with ‘Instrument of Authorisation’. References to ‘Subacute Community and Aged Care Directorate’ have been replaced with ‘Purchasing and Contracting Unit, Department of Health’.
Minor Amendment 3 January 2019 Reference to Schedule One under Outsourced Healthcare Services replaced with a requirement to consider whether any policies are relevant to the delivery of healthcare services. Formatting corrections throughout.
Major Amendment 9 August 2019
  • Treatment of some threshold boundary values has been amended by $1 either side to align with State Supply Commission requirements, and adopt a consistent approach. Please note $20K ≤ x < $50K contracts are still required to follow a Verbal Quotes process at this stage with a view to having this amended by January 2020 to fully align with State Supply Commission. Once implemented this will be actioned across all policies and templates. 
  • Provision to instruct preparation of a PBC for ICT procurements has been amended to be position-neutral. 
  • References to the Office of the Chief Procurement Officer positions for the purpose of providing endorsement have been updated. 
  • Treatment of contract variations amended to align with State Supply Commission policy interpretation, and clarify application of requirements. 
  • Direct engagement of Australian Disability Enterprises and Aboriginal Businesses for purchases under $50,000 no longer requires an exemption.
  • Market-led proposals are subject to different process requirements, following the establishment of the State Supply Commission Market-led Proposals policy, and accompanying revisions to the Open and Effective Competition policy.
  • Supporting information amended to acknowledge availability of a range of guides and templates, instead of specific documents. 
  • Addition of Integrity Statement. 
  • Policy no longer applies to Department of Health employees. Further minor amendments made to improve clarity in application of requirements throughout policy.
Major Amendment 16 December 2019 The minimum requirements for verbal quotes and the completion of a Client Request Form, Evaluation Report and outcome notifications for procurement processes valued $20k ≤x< $50k removed changed in section 3.1.2 and 3.1.4. References to superseded Premier's Circular 2016/02 removed from 3.1.5. Added new footnote to section 3.2.3. Further minor amendments to section 1, 3.1.2 and 3.1.5 for additional clarity and to update hyperlinks.
Major Amendment 14 July 2020 Section 3.1.2 amended to allow for a revised set of temporary minimum requirements and align with the State Government’s COVID-19 economic recovery efforts.
Section 3.1.3 and section 3.1.4 amended to align with revisions to SSC Policy on treatment of market-led proposals. 
Minor Amendment 21 July 2020 Minor amendment to footnote 10 in section 3.2.3.

Date of effect: 05 July 2018

Policy Framework