Factsheet - Direct Dealing

Factsheet

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Author

IIA-Australia

Date

2022

Topics Explored

Governance, Fraud and Corruption

Format

Factsheet

Extract/Description

Direct dealing may also be referred to as ‘sole source’, ‘direct negotiation’, ‘directly sourced’, ‘single sourced’ or ‘non-competed contract’.  It is a higher risk procurement process for which there may be compelling reasons but which should not be used routinely or as a substitute for competitive procurement.

Key Points

1. Procurement processes should be conducted with transparency and probity.

2. The closed nature of direct dealing can create opportunities for dishonest and corrupt conduct.

3. Governments sometimes find themselves in situations where they may have no alternative but to enter into direct dealing. 

Relevant Industries

All

Level of Assumed Knowledge

Expert

Aligned to Global Internal Audit Standards

No