Procurements that are exempt from the rules of Division 2 by the operation of Appendix A are still required to be undertaken in accordance with value for money and with the rules of Division 1 of these CPRs.
Division 2 does not apply to:
- leasing or procurement of real property or accommodation (note: the procurement of construction services is not exempt);
- procurement of goods and services by an agency from other Commonwealth, state, territory or local government entities where no commercial market exists or where legislation or Commonwealth policy requires the use of a government provider (for example, tied legal services);
- procurements funded by international grants, loans or other assistance, where the provision of such assistance is subject to conditions inconsistent with this document;
- procurements funded by grants and sponsorship payments from non-Commonwealth entities;
- procurement for the direct purpose of providing foreign assistance;
- procurement of research and development services, but not the procurement of inputs to research and development undertaken by an agency;
- the engagement of an expert or neutral person, including engaging counsel or barristers, for any current or anticipated litigation or dispute;
- procurement of goods and services (including construction) outside Australian territory, for consumption outside Australian territory;
- acquisition of fiscal agency or depository services, liquidation and management services for regulated financial institutions, and sale and distribution services for government debt;
- procurement of motor vehicles;
- procurement by the Future Fund Management Agency of investment management, investment advisory, or master custody and safekeeping services for the purposes of managing and investing the assets of the Future Fund;
- procurement of blood plasma products or plasma fractionation services;
- procurement of government advertising services;
- procurement of goods and services by, or on behalf of, the Defence Intelligence Organisation, the Defence Signals Directorate, or the Defence Imagery and Geospatial Organisation;
- contracts for labour hire;
- procurement of goods and services from a business that primarily exists to provide the services of persons with a disability; and
- procurement of goods and services from an SME with at least 50 per cent Indigenous ownership.
1. This includes information and advertising services for the development and implementation of information and advertising campaigns.
The following definitions apply for the purposes of these CPRs:
Accountable Authority – as defined in section 8 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
Annual procurement plan – a document published on AusTender through which relevant entities provide a short summary of their strategic procurement outlook for the coming year and information on significant procurements they plan to undertake.
Approach to market – any notice inviting potential suppliers to participate in a procurement which may include a request for tender, request for quote, request for expression of interest, request for application for inclusion on a multi-use list, request for information or request for proposal.
Note: the acronym ‘ATM’ is used on AusTender and other procurement documents to reference an approach to market.
AusTender – the central web-based facility for the publication of Australian Government procurement information, including business opportunities, annual procurement plans and contracts awarded.
Commercial goods and services – commercial goods and services are of a type that are offered for sale to, and routinely purchased by, non-government buyers for non-government purposes, including any modifications common in the commercial marketplace and any minor modifications not common in the commercial marketplace.
Commodity market – a recognised exchange dealing in generic, largely unprocessed, goods that can be processed and resold.
Conditions for participation – minimum conditions that potential suppliers must demonstrate compliance with, in order to participate in a procurement process or for submissions to be considered. This may include a requirement to undertake an accreditation or validation procedure.
Construction services – procurements related to the construction of buildings and procurements of works as defined by the Public Works Committee Act 1969.
Contract – an arrangement, as defined by s23(2) of the PGPA Act, for the procurement of goods and services under which relevant money is payable or may become payable. Note: this includes standing offers and panels.
Contracts for labour hire – a contract under which a relevant entity engages an individual to provide labour, when the individual is engaged either directly or through a firm which primarily exists to provide the services of only that individual. This includes the appointment of an eminent individual to a special role by an Accountable Authority, or the appointment of a person or persons by an Accountable Authority to a governance committee (for example, an audit committee, ethics committee or steering committee), but does not include the engagement of consultants.
Corporate Commonwealth entities – as defined in section 8 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act)
Days – means calendar days.
End date (in a contract) – can be defined by reference to a specific date or by reference to a specific event.
Evaluation criteria – the criteria that are used to evaluate the compliance and/or relative ranking of submissions. Evaluation criteria must be clearly stated in the request documentation.
Goods – every type of right, interest or thing which is legally capable of being owned. This includes, but is not restricted to, physical goods and real property as well as intangibles such as intellectual property, contract options and goodwill.
GST – The Goods and Services Tax, as defined by the A New Tax Systems (Goods and Services Tax) Act 1999.
Limited tender – involves a relevant entity approaching one or more potential suppliers to make submissions, when the process does not meet the rules for open tender or prequalified tender.
Minimum content and format requirements – criteria that a tenderer’s submission is required to meet, when responding to an approach to market, to be eligible for further consideration in a procurement process.
Multi-use list – a list, intended for use in more than one procurement process, of pre-registered suppliers who have satisfied the conditions for participation on the list. Each approach to a
multi-use list is considered a new procurement.
Non-corporate Commonwealth entities – as defined in section 8 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
Officials – as defined in section 8 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
Open approach to market – any notice inviting all potential suppliers to participate in a procurement which may include a request for tender, request for quote, request for expression of interest, request for application for inclusion on a multi-use list, request for information and request for proposal.
Open tender – involves publishing an open approach to market and inviting submissions.
Potential supplier – an entity or person who may respond to an approach to market.
Prequalified tender – involves publishing an approach to market inviting submissions from all potential suppliers on:
a. a shortlist of potential suppliers that responded to an initial open approach to market on AusTender;
b. a list of potential suppliers selected from a multi-use list established through an open approach to market; or
c. a list of all potential suppliers that have been granted a specific licence or comply with a legal requirement, when the licence or compliance with the legal requirement is essential to the conduct of the procurement.
Procurement – refer to paragraphs 2.7 to 2.9.
Procurement thresholds – refer to paragraph 9.7.
Public resources – as defined in section 8 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
Relevant money – as defined in section 8 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
Relevant entity – non-corporate Commonwealth entities and prescribed corporate Commonwealth entities (listed at Appendix B) that must comply with the CPRs when performing duties related to procurement.
Reporting thresholds – refer to paragraph 7.17.
Request documentation – documentation provided to potential suppliers to enable them to understand and assess the requirements of the procuring relevant entity and to prepare appropriate and responsive submissions. This general term includes documentation for expressions of interest, multi-use lists, open tender, prequalified tender and limited tender.
Research and development – research is described as systematic enquiry or investigation into a subject in order to discover facts or principles. Research includes surveys, market research, scientific research and educational research. Development applies to the function of creating/producing new and improved products, devices, processes or services. Development also extends to design, proof of concept and the production of prototypes.
Small and Medium Enterprises (SMEs) – an Australian or New Zealand firm with fewer than 200 full-time equivalent employees.
Specification – a description of the features of the goods and services to be procured.
Standing offer – an arrangement setting out the terms and conditions, including a basis for pricing, under which a supplier agrees to supply specified goods and services to a relevant entity for a specified period.
Submission – any formally submitted response from a potential supplier to an approach to market. Submissions may include tenders, responses to expressions of interest, applications for inclusion on a multi-use list or responses to request for quote.
Supplier – an entity or person who has entered into a contract with the Commonwealth.
Tenderer – an entity or person who has responded with a submission to an approach to market.