VGPB Policy 3: Market Analysis and Review

Summary

Requires agencies to understand market dynamics before approaching the supply market. Covers market analysis, demand aggregation, State Purchase Contracts, multi-agency arrangements, and asset disposal.

4 Mandatory Requirements

MR 7 — Market Analysis (s1.1)

The organisation must: - Consider complexity assessment outcome to determine if it provides a basis for approaching the market - Undertake further analysis at individual procurement level where category assessment is insufficient - Conduct market analysis to identify capability and capacity of the market to supply - Reassess the procurement requirement with regard to market findings - Prepare a statement of grounds or business case supporting the decision to proceed and identifying the optimal market engagement strategy

MR 8 — State Purchase Contracts (s2.1.1)

Lead agencies establishing an SPC must: - Consult with VGPB - Satisfy VGPB of capability to establish and manage - Have SPC business case endorsed by VGPB then approved by relevant Minister - Obtain ministerial authorisation to enter into the SPC - Establish appropriate governance including a contract management framework - Establish rules of use for buyers

Using organisations must use mandatory SPCs and follow rules of use.

MR 9 — Multi-Agency Arrangements (s2.1.2)

Lead agencies must: - Determine which organisations can use the arrangement - Confirm no SPC covering the same goods/services is planned - Confirm capability to establish and manage - Notify the VGPB - Have business case approved by its accountable officer or delegate - Establish appropriate governance and rules of use

MR 10 — Disposal of Assets (s3.2)

The organisation must develop and apply an asset disposal process addressing: - Protection of public sector data and information assets - Parties/business units responsible - Disposal options appropriate to asset nature - Risk, liability, safety and security management - Keeping the asset register up to date

Standard practice: disposal via public auction or tender unless disposal costs exceed residual value.

Supporting Guides

• Market analysis and review guide
• Aggregate demand guide
• Collaborative procurement guide
• Create a business case guide
• Government procurement under international agreements guide
• Structuring SPCs and other procurement arrangements guide