Agencies seeking to spend public money will face stricter oversight from the ACT's procurement board under changes proposed by the territory government.
The board will also be required to refer procurements to government ministers if it believes its recommendations have not been addressed, while more procurements will need to go to open public tender.
Special Minister of State Chris Steel introduced a bill to amend the ACT's procurement laws to the Legislative Assembly on Thursday.
The laws, when passed, will require a government agency to explain in writing how it has or intends to address the board's recommendations.
Government agencies will need to run an open tender process for all goods and services worth $500,000 or more than $1 million for construction work.
Changes to the threshold would bring the territory into closer alignment with thresholds set by the NSW and Commonwealth governments, the ACT government said.
"The combination of updated legislation, legislative instruments and new terms of reference will ensure that the board has appropriate power and authority and that territory entities are clear on their accountabilities," the government said.
"Changes to the government procurement board resulting from this bill will ensure that the board is operating with optimal efficiency and effectiveness and will reduce the duplication of work by focusing on fewer, higher-risk procurements.
The government said it would also issue new terms of reference for the board to clarify its roles and obligations and set out a new statement of strategic direction in subordinate legislation.
"Each year, the ACT government spends close to $1.5 billion on procurements that support the delivery of quality public services, infrastructure, economic growth, and community wellbeing," an explanatory statement accompanying the bill said.
"This expenditure needs to be undertaken in alignment with community values; conducted with transparency, fairness and rigour; and achieve value for money."
The ACT government has faced sustained criticism for the handling of procurement processes, with some of the changes to the procurement board laws prompted by an Auditor-General's report that found the board was "not optimally effective".
The audit found the board was not assertive enough in its advice on the Canberra Institute of Technology's procurement of more than $8.5 million worth of contracts from a "complexity and systems thinker", Patrick Hollingworth, and there were "missed opportunities" for better procurement outcomes.
The board was not efficient in fulfilling its functions and it should be focused on reviewing more higher-risk proposals, the audit said.
The audit examined the board's handling of more than 400 proposals over five years, focusing on the Canberra Institute of Technology contracts as a main case study of the board's operations.
The CIT contracts are being investigated by the Integrity Commission. Integrity commissioner Michael Adams in February 2022 said probity issues with the ACT's procurement system may be endemic.
The government accepted all recommendations made by the Auditor-General.
"The amendments made under this bill strengthen the procurement decisions of the ACT government and ensure that public funds are managed appropriately through robust and transparent procurement processes," the government said.
