Department of Treasury and Finance

An overview of Government procurement

Procurement and Property Branch

Government procurement policy

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• Government procurement governed by:– Treasurer's Instructions (established under Financial

Management and Audit Act 1990) - available at www.treasury.tas.gov.au;

– The procurement chapters of various free trade arrangements:– Australia and New Zealand Government Procurement Agreement; – Australia – United States Free Trade Agreement; and– Other approved FTAs (eg Chile FTA).

• Government procurement policy applies to all inner Budget agencies (and some related entities):– but not to Local Government or Government owned

businesses (eg Aurora, Hydro, Transend, TT Line, Tasrail, Tasracing, Tasports etc).

Procurement principles

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• Core Procurement Principles:– Value for money;– Open and effective competition;– Conducting purchasing activities ethically and in

accordance with the code of conduct; and– Enhancing opportunities for local business.

• All Government procurement must be undertaken in accordance with these principles:– Expending public monies requires high ethical standards

and sound justification of the expenditure.

Procurement practices/processes

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• Under the principles, instructions and processes for various types of Government purchasing:– Thresholds for procurement method:

•All procurements – $10K or less at discretion of each agency;•Goods & services – over $10K to under $100K (quotes), $100K and above

(open tenders);•Building & construction – over $10K to under $100K (quotes), $100K and

above (tenders);•Roads and bridges – over $10K to under $250K (quotes) and $250K and

above (tenders).

– Prequalification for building and construction procurements. – Exemptions from prescribed processes for certain

circumstances.

• Each agency is responsible for its own procurement:– Some whole of Government contracts (eg: vehicles,

advertising, ICT).

Tasmanian businesses

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Prequalification

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• Agencies required to use prequalified consultants/contractors, where categories exist, for building & construction, maintenance and roads & bridges above certain values.

• For works outside the prequalification categories, assessment of the capacity of contractor/consultant is part of the evaluation process.

• There are three prequalification schemes:– Austroads National Prequalification System for Civil (Road and

Bridge) Construction Contracts (for contractors);– Treasury Prequalification Scheme for Building and Construction

(contractors $100K and above, consultants all procurements); and

– National Prequalification System for Non-residential Building at or above $50 million (for contractors).

The procurement process

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• Agency releases request for tender (open to all) or quotation (selected parties) with:– conditions of procurement, conditions of contract, specification

and response form/schedule.

• Interested suppliers provide submissions, including signed response forms, prices and all required information.

• Agency evaluates submissions, identifies preferred supplier and commence contract negotiations.

• Unsuccessful suppliers should ask for a debrief once advised of process outcome:– Agencies must advise all tenderers of the outcome of the

process and offer a debrief.

Tips and checks

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• What are the evaluation criteria?:– This is what the agency will use to evaluate your submission – make

sure your submission provides compelling information for each criterion.

– Ensure you can meet any mandatory criteria (eg licensing or qualifications).

• Present information clearly and concisely:– If no response schedules are provided, then list each evaluation

criterion as a heading, avoid jargon and provide any detailed information as appendices.

• Make yourself known to the contact officer:– A simple call to say you will be submitting and to clarify what is really

important to the agency is a highly effective strategy.

• Ensure you fully complete the price/cost schedule (check whether prices are ex/inc GST) and sign the response form.

• Make your bid competitive – it is about value for money to the Government (and therefore to Tasmanian taxpayers).

• Start your submission early and submit on time.

On-line resources for business

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• Winning Government Business website for suppliers:– Resources, tips and advice on how to find and win business

with the Government.– www.purchasing.tas.gov.au > Winning Government Business.

• The Tasmanian Government Tenders website.– Information on anticipated, current and closed procurements

(valued at $100K or more) and details of awarded contracts (valued at $50K or more).

– Automatic email notification of new Tenders to registered suppliers.

– www.tenders.tas.gov.au.• New guides and documents to assist small business:

– New Buy Locally Guides to assist:• suppliers to highlight the benefits of buying locally in their

submissions; and• Government buyers assess the impacts of buying locally in their

tender evaluations.– Simplified procurement documents for low value/low risk

Government procurements (generally those less than $100K).

Registering on www.tenders.tas.gov.au

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• Suppliers can register (free of charge) to:– Receive updates on procurements in various categories;

and– Download tender documents and electronically lodge

tenders (for procurements where allowed).

Registering on www.tenders.tas.gov.au

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• Click on the register link and fill in the basic account details, then select the register button.

Registering on www.tenders.tas.gov.au

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• The website will send an email to the address entered in the previous step.

• Click on the link to proceed to the final step.

Registering on www.tenders.tas.gov.au

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• Fill in the remaining details of your account.• If you wish to be notified of procurements by email, ensure that

you select the option and the categories which are appropriate to your business.

• This page also contains a link to information on each category.

Contact information

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• Tender/Quotation contact officer:– details provided in procurement documentation issued.

• Agency procurement officers:– Listed on www.purchasing.tas.gov.au>winning government

business.

• Tasmanian Government Tenders website:Website: www.tenders.tas.gov.au Telephone: 6233 3885Email: tenders@treasury.tas.gov.au

• Treasury Prequalification Scheme Building and Construction and NPS for Non-residential Building:Telephone: 6233 2917Email: prequalified@treasury.tas.gov.au

• Department of Infrastructure, Energy and Resources - Austroads NPS for Civil (Road and Bridge) Construction Contracts:Website: http://www.transport.tas.gov.au/road/contract_tenders