Probity risk treatments

Managing increased communication volume means effectively handling the influx of supplier inquiries and ensuring timely, consistent and accurate responses. This maintains the integrity and efficiency of the procurement process.

Remove the risk

• Simplified procurement process: Simplify the procurement process to reduce complexity and the need for clarifications. This reduces the volume of supplier inquiries, easing the burden on the procurement team. However, this approach may limit the scope for innovative solutions and may not fully address the procurement needs.

Reduce the likelihood

• Dedicated communication team: Establish a dedicated team, or point of contact, responsible for handling all supplier communications. This ensures timely and consistent responses to supplier inquiries, reducing delays and inconsistencies. However, this may require additional resources and training to maintain effectiveness.
• Predefined Frequently asked questions (FAQ) and clarification sessions: Develop a comprehensive FAQ document addressing common questions and schedule regular clarification sessions with suppliers. This reduces the volume of repetitive inquiries and ensures suppliers have access to accurate information. This activity requires thorough preparation and coordination to address supplier concerns effectively.

Reduce the consequences

• Documented communication protocols: Establish and maintain documented protocols for handling supplier inquiries. The protocols should include response times and procedures for escalating complex issues. This provides a clear and auditable process for managing communications, reducing the potential for disputes or complaints. This activity requires consistent adherence to protocols and ongoing monitoring.
• Regular updates and transparency: Provide regular updates to suppliers on the status of their inquiries and any changes to the procurement process. This keeps suppliers informed and engaged, reducing the likelihood of disengagement.

Accurately framing the scope and scale of the final opportunity is crucial to attracting high-quality solutions from suppliers.

Clear communication helps suppliers understand the value and potential impact of their participation. This ensures they invest the necessary time and resources in their proposals.

Remove the risk

• Avoid complex procurement: Avoid engaging in complex projects where the scope and scale cannot be clearly defined from the outset. This approach would limit the use of diverse procurement pathways, potentially missing out on innovative solutions.

Reduce the likelihood

• Transparent documentation: Provide detailed and transparent information about the project’s scope, objectives and potential benefits in all procurement documents so that the suppliers have a clear understanding of the opportunity. This increases their confidence in the process and their willingness to invest in developing proposals.

Reduce the consequences

• Feedback mechanism: Implement a feedback mechanism where suppliers can provide input on the clarity and perceived value of the opportunity. Regular feedback can highlight areas where communication may be lacking and allow for timely adjustments. This proactive approach can prevent suppliers from feeling marginalised and reduce the likelihood of formal complaints.
• Transparent dispute resolution: Establish a transparent process for addressing and resolving any issues or disputes related to the scope and scale of the opportunity. A clear resolution process ensures that any disputes are handled fairly and efficiently. 

Correctly representing the certainty of each procurement and budget means progressively updating the procurement strategy and budget as confidence increases. 

Transparent communication about the stages of procurement and budget availability helps build trust and ensures suppliers can make informed decisions about their participation.

Remove the risk

• Avoid uncertainty: Only initiate procurements with fully confirmed budgets and clear, unchangeable stages. This approach would significantly limit the flexibility and responsiveness of the procurement process. It may also lead to missed opportunities for innovative solutions.

Reduce the likelihood

• Clear communication: Clearly communicate to suppliers that the procurement stages and budget are subject to change. Provide regular updates as new information becomes available. Suppliers aware of the potential for changes can plan their involvement accordingly. Regular updates build trust and transparency, ensuring suppliers feel informed and valued throughout the process.
• Agile planning: Include contingencies and flexible planning in the procurement strategy to account for potential changes in stages or budget availability. This approach allows the procurement process to adapt to new information without compromising the overall timeline or objectives.

Reduce the consequences

• Feedback mechanism: Implement a formal mechanism for suppliers to provide feedback on the procurement process and any perceived uncertainties or changes. This ensures that concerns are addressed promptly and prevents escalation into formal complaints or legal challenges.
• Clear guidelines: Establish clear guidelines and procedures for managing and communicating changes to procurement stages or budget availability. Having a structured approach to handling changes ensures that suppliers receive consistent and accurate information, reducing confusion. This helps maintain trust and participation from suppliers, even when adjustments are necessary.
• Flexibility for suppliers: Provide suppliers with the opportunity to withdraw or revise their proposals if significant changes occur in the procurement process or budget. This option gives suppliers flexibility and control over their involvement. This reduces the risk of wasted resources and increases willingness to participate in future procurements.

Managing this uncertainty means progressively discovering new information and adjusting the procurement strategy as confidence increases.

Remove the risk

• Fixed procurement plans: Implement a fixed plan that does not change once the procurement process begins. This provides certainty and stability to suppliers, reducing concerns about changing requirements or stages. However, this approach is inflexible and may not allow for the necessary adjustments as new information is discovered. It can lead to less optimal outcomes.

Reduce the likelihood

• Incremental staging and milestones: Divide the procurement process into clear, incremental stages with predefined milestones. Regularly communicate the progress and any changes to all suppliers. This keeps suppliers informed about the process and any potential changes, reducing the likelihood of surprise adjustments. However, it requires careful planning and ongoing communication to manage effectively.
• Transparent communication of uncertainty: Clearly communicate the potential for changes in procurement stages or budget from the outset. Highlight that the process may evolve as more information becomes available. This sets realistic expectations for suppliers and reduces the likelihood of perceived unfairness. This approach requires ongoing, transparent communication so suppliers remain aware of the potential for changes.

Reduce the consequences

• Periodic reviews and adjustments: Conduct periodic reviews of the procurement process and strategy. Adjust as necessary based on new information and supplier feedback. Communicate these reviews and adjustments transparently to all suppliers. This keeps the procurement process responsive to new information and supplier feedback. It also reduces the potential for perceived unfairness. An ongoing commitment to review and adjust the process is required.
• Documented decision-making process: Maintain a detailed record of all decisions related to changes in the procurement strategy. Include the rationale and supporting information. Make this documentation available to suppliers where appropriate. This provides transparency to the decision-making process and it reduces the potential for disputes or complaints. This approach requires diligent record keeping and transparency about decision-making criteria.

To ensure a fair and effective evaluation of diverse solutions, it is crucial to address the inherent challenges of applying a single set of criteria to innovative and emerging technologies alongside more established ones.

Remove the risk

• Separate evaluation criteria: Develop distinct evaluation criteria for different types of solutions based on their maturity and innovation level. This ensures a more tailored and fair assessment of each solution type. However, it may complicate the evaluation process and require additional resources to manage multiple sets of criteria effectively.

Reduce the likelihood

• Expert panels for diverse solutions: Form expert panels with specialised knowledge in various solution types to evaluate submissions. Solutions being assessed by individuals with relevant expertise leads to a more accurate and fair evaluation. This approach requires identifying and recruiting experts in different fields.
• Transparent evaluation process: Clearly communicate the evaluation process and criteria to all suppliers. Emphasise how diverse solutions will be assessed. This sets clear expectations and reduces the likelihood of perceived unfairness.

Reduce the consequences

• Documentation of evaluation rationale: Maintain detailed records of the evaluation process and the rationale behind scoring decisions for each solution. This provides transparency, reducing the potential for disputes or complaints. This approach requires diligent record-keeping and a clear documentation process. 

Managing unique Intellectual Property (IP) considerations is essential to ensure that innovative solutions are not only proposed but also protected and fairly evaluated.

Addressing IP concerns transparently and fairly helps maintain supplier trust and encourages the submission of high-quality, innovative proposals.

Remove the risk

• Avoid complex procurement: Avoid engaging with suppliers on projects involving significant IP considerations. This approach could result in missing out the most innovative solutions. It may also limit the pool of potential suppliers, reducing competitiveness and potentially increasing costs.

Reduce the likelihood

• Clear IP policy: Clearly articulate IP policies and protection measures in procurement documents. Ensure suppliers understand how their IP will be managed and protected. When providing detailed information on IP management upfront, suppliers are likely to feel confident in sharing innovative ideas. This reduces the likelihood of suppliers withholding their best solutions due to IP concerns.
• Engagement with suppliers: Engage with suppliers early in the procurement process to discuss IP concerns. Collaboratively develop mutually acceptable IP agreements. Early engagement allows for the identification and resolution of IP issues before they become barriers.

Reduce the consequences

• Transparent handling of IP: Establish clear, fair, and transparent processes for handling IP disputes. Having robust dispute resolution processes in place reduces the impact of IP disputes on the procurement timeline and project delivery.
• Staged procurement and adjustments: Implement staged procurement processes where IP considerations are progressively addressed. Allow for adjustments as more information becomes available. A staged approach enables continuous assessment and refinement of IP management strategies. This reduces the administrative burden and complexity of managing IP issues.

Another way to manage uncertainty is to increase interaction with suppliers to get the right information at the right time. The need to protect this systematic uncovering of critical information should drive consideration of treatment options.

Remove the risk

• Centralised communication channels: Implement a single point of contact for all communications with suppliers. This could be a dedicated team or individual responsible for sharing consistent information. All suppliers receiving the same information at the same time reduces the risk of miscommunication or perceived favouritism. However, it may slow down the communication process and limit the ability to address specific supplier queries in detail.
• Standardised documentation: Use standardised templates and documents for all communications with suppliers. Reduces the likelihood of inconsistencies in information shared with suppliers. This approach may be too rigid, not allowing tailored engagement which may be needed for agile procurement.

Reduce the likelihood

• Regular and transparent updates: Schedule regular updates with all suppliers simultaneously, to share progress and any changes in the procurement process. This keeps all suppliers informed and reduces the chance of miscommunication. Requires careful coordination and may require additional resources to ensure all updates are clear and comprehensive.
• Clear communication protocols: Establish and enforce protocols for how and when information is shared with suppliers. Log all communications and make them accessible to all relevant parties. Facilitates open communication and provides a clear audit trail of all interactions. Implementing and maintaining such platforms may require significant investment and training.

Reduce the consequences

• Communication logs: Maintain detailed logs of all communications with suppliers, including minutes from meetings, emails and decisions made. Make these logs accessible when necessary. This provides a clear record that can be reviewed to resolve disputes and ensure transparency. Keeping detailed logs can be time-consuming and may require additional administrative support.
• Supplier feedback: Regularly seek feedback from suppliers about the communication process. Make adjustments as necessary to address any concerns or areas for improvement. This demonstrates a commitment to transparency and continuous improvement. Acting on feedback may require changes to established processes, which could be challenging to implement consistently.

When buying innovation, probity-risks can be amplified and the desire to use a probity advisor increases. The practical guidance on this page should be considered before engaging a probity advisor. It is important to remember that engaging a probity adviser or an auditor doesn't outsource accountability. The agency is always accountable.

If management of probity risks still isn’t sufficient for the complexities of buying innovation, it may be appropriate to engage a probity adviser. For further advice on how to engage an external probity adviser or an auditor please refer to the guidance on buy NSW.

While probity is an essential part of procurement, it should not be used to block innovation or avoid taking reasonable risks