Ethical Supplier Mandate for suppliers
From 1 February 2024, the Ethical Supplier Mandate (the Mandate) applies to the procurement categories of General Goods and Services, Information and Communication Technology, Medical, Social Services and all future procurement categories under the Queensland Procurement Policy (QPP).
The Ethical Supplier Mandate outlines how the Queensland Government manages instances where suppliers fail to:
- meet requirements of the Queensland Procurement Policy
- comply with a policy, legislative or contractual requirement
- fulfil commitments made
- abide by the law.
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The Mandate ensures that we conduct business with ethical, environmentally and socially responsible suppliers while removing unethical behaviour from the supply chain.
Unethical behaviour includes:
- a breach of a supplier's predetermined contractual obligations
- actions that breach policy or laws.
The Mandate benefits suppliers, workers and the broader Queensland community by:
- ensuring suppliers are treated fairly and not exposed to undercutting and unjust competition
- making Queensland workplaces fairer and safer
- ensuring that Queensland taxpayers' money is used to build the local economy and support jobs.
Note: The Mandate complements the best practice principles for procurement, which continue to apply to major and declared projects.
Who is subject to the Mandate
When the Mandate applies
The Mandate has been expanded to all procurement categories. Commencement dates for its application to specific procurement categories are as follows:
| Entity | Building Construction and Maintenance | Transport Infrastructure and Services | All other categories under the QPP (existing and future) |
|---|---|---|---|
| Budget sector agencies | From 1 August 2019 | From 1 October 2019 | From 1 February 2024 |
Commercial entities
| From 31 March 2023 | From 31 March 2023 | From 1 February 2024 |
| Government owned corporations | From 31 March 2023 | From 31 March 2023 | From 1 February 2024 |
| Statutory bodies | From 1 February 2022 | From 1 February 2022 | From 1 February 2024 |
Water entities
| From 31 March 2023 | From 31 March 2023 | From 1 February 2024 |
How the Mandate works
The Mandate will only impact suppliers that a decision maker, on advice from the Tripartite Procurement Advisory Panel (the Panel), considers knew or ought to have known that its conduct was in breach of a requirement of the Mandate.
The Mandate is not intended to penalise one-off honest mistakes or oversights which the supplier promptly corrects.
If the procuring agency suspects a supplier is non-compliant under the Mandate, they will refer the alleged non-compliance to the Queensland Government Procurement (QGP) Compliance Branch for investigation.
Where the QGP Compliance Branch finds evidence to support that a non-compliance occurred, the matter will be referred to the Panel.
The Panel is an independent body that provides objective advice and penalty recommendations to the decision maker.
The panel makes recommendations on a case-by-case basis, depending on the severity of the breach.
The Mandate's penalty framework
From 1 February 2024, application of the Mandate's penalty framework will expand to suppliers who breach contractual obligations, policies and/or laws in all existing procurement categories under the Queensland Procurement Policy (QPP) as well as any future categories. The expanded penalty framework will comprise of:
- a whole-of-government component that operates uniformly across all procurement categories under the QPP
- and
- a category-specific component that is fit for purpose.
Penalties under the Mandate are imposed through demerit points and/or sanctions (i.e. potential for a maximum 12-month ban from supplying to government) which are issued on the basis of a sliding scale:
- minor breach – 2 demerit points
- moderate breach – 5 demerit points
- major breach – 10 demerit points
- aggravated breach – 20 demerit points.
If a supplier accumulates 20 demerit points in a 12-month period, they face the potential for sanction—including loss of prequalification status and exclusion from future opportunities as a government supplier.
If a supplier is sanctioned and has an existing contract with government, any extension options under that contract won't be exercised.
Penalties are issued for non-compliances that occur on or after the date the Mandate has been applied to the relevant procurement category. Penalties are not applied retrospectively. Demerits expire 1 year from the date they are issued.
Information on penalties under the Mandate for breaches of the Threshold is available at Ethical Supplier Threshold for suppliers.
Tender documentation and procurement contracts will contain provisions that reflect the Mandate's application.
Contact us
- Email: ethicalsupply@epw.qld.gov.au
- Phone: 1300 105 030
Also consider...
- Subscribe to our newsletter for supplier updates.
- Make a complaint about a Queensland Government procurement process.
- Read more about best practice principles for procurement.
- Learn about the Ethical Supplier Threshold.
- Learn about Ethical Supplier requirements.