- Published:
- Thursday, 30 April 2020 at 2:00 pm
- Department:
- Victorian Government Solicitor's Office
Managing Suppliers
The COVID-19 outbreak has had a major impact on suppliers and it is foreseeable that some suppliers may struggle to meet their contractual obligations. COVID-19 will also affect how Government organisations approach the market. During this time:
Engage in a suitable procurement process
Consider whether the procurement falls under an existing State Purchase Contract (SPC). SPC's are standing offer agreements for commonly used goods and services.
The eServices Register Contract is another efficient and built-for-purpose contract for most standard IT procurements. Although it is not a SPC, it is a mandatory Victorian contract for procuring certain kinds of IT services.
Consider also whether critical incident protocols can be followed to streamline your procurement. If so, then your organisation must still adhere to the minimum mandatory requirements for:
- evaluating value for money and ensuring accountability and probity
- record-keeping
- contract disclosures
Understand the impact that COVID-19 has on your contracts, and aim to achieve optimal long-term result
If a supplier is unable to perform, consider whether:
- it is prudent to vary the supplier's liability for liquidated damages or to relax the service level agreement
- the supplier's performance can be delayed
- on-site attendance is necessary and whether the project can be delivered remotely
Document all contract changes and interim arrangements
If you vary a contract, ensure you document the new agreement and appropriately execute the variation. To remedy the logistical difficulties created by COVID-19, new State and Commonwealth laws have been passed permitting documents to be executed using electronic signatures.
Contact us
Please get in touch with our technology team if you need assistance.
Bea Stathy
Managing Principal Solicitor
Email: bea.stathy@vgso.vic.gov.au
Updated