Easy reference summary

How the Government buys

What you need to know

• For most products, there is no single Australian Government procurement market. Individual agencies are responsible for their own procurement processes and outcomes. Responsibility for purchasing is typically spread throughout the agency, which means there may be many buyers in any one agency.
• The government market has some unique features. Some aspects of doing business with the government (such as how your confidential information will be treated and the potential need for auditors to access your records and premises) are different to what you would encounter with private sector buyers. You may need to make some adjustments from your normal business practices.
• The Commonwealth Procurement Guidelines is the most important policy document covering Australian Government procurement, but individual agencies have their own rules to back up these guidelines at the practical level. The key focus is always on value for money and the equitable treatment of competing suppliers.
• For business opportunities below thresholds set in the Guidelines, agencies can determine a process appropriate to the scale, scope and risk of the proposed procurement.
• For business opportunities above the relevant threshold, there is a more
  comprehensive set of rules, including the presumption of an open approach to
  the market.

What you can do

• Gain a basic understanding of the Australian Government’s procurement policies and processes.
• Carefully read the tender documents as they should tell you everything you need to know about a particular process.
• Gather background knowledge on the specific agency.

Where to find opportunities

What you need to know

• All publicly available business opportunities are advertised through the AusTender system at www.tenders.gov.au.
• You can register with AusTender and receive automatic emails about relevant business opportunities as they are advertised.
• Agencies publish their annual procurement plans on AusTender. The plans provide a strategic procurement outlook and detail specific procurements planned for the coming year.
• You can search AusTender for awarded contracts and standing offers valued at $10 000 or more. This can help you to find out who is buying what and which agencies you should be targeting.
• Not all business opportunities are publicly advertised. For smaller purchases, below the covered procurement thresholds, agencies are permitted to approach suppliers directly. This provides additional opportunities to sell to government, but first agencies will need to know what you do and be confident you have the capability to supply.

What you can do

• Register with AusTender and get to know the website and the opportunities it presents.
• Try to identify which agencies might have a need for your goods or services, as well as the buyers within those agencies. Agency websites and the Government Online Directory can be good sources of information on what agencies do and how they operate.
• Provide agency buyers with relevant information about your business so they know what sets you apart from your competitors (but don’t put them off with a flood of advertising material).
• Maintain contact with agencies to ensure you know when relevant opportunities arise, and they know your credentials and what you have to offer.

How to compete for government business

What you need to know

• Understand the Government’s business environment.
• Understand each agency’s specific requirements and business needs.
• Agencies look for suppliers who can add the most value to their activities, so try to emphasise what sets you apart from your competitors.
• Agencies cannot accept late submissions.
• Agencies cannot evaluate submissions that do not meet the required conditions.
  If you do not meet all the conditions for participation or address the evaluation criteria, your submission cannot be evaluated.
• As a general rule, the best value for money proposition from a reliable supplier will win the business.

What you can do

• Before you invest time and resources in preparing a tender, decide whether the opportunity is potentially rewarding and cost-effective to pursue, and if you have a reasonable chance of winning the business.
• Build relationships with agencies and make sure they are aware of your capabilities and your ability to perform—as many lower-value purchases are not advertised publicly, your reputation in the marketplace may be the key to accessing these
  opportunities.
• Consider the benefits of strategic partnerships and sub-contracting arrangements for reducing your tender costs and gaining access to the market.
• When submitting a tender, be sure you comply with all the specified conditions.
• Ensure that your tender is submitted on time, otherwise the agency will not accept your submission.
• Make sure you have read and can comply with the terms and conditions of a contract before you sign. The government may have specific requirements and conditions that differ from those you are familiar with in the private sector.
• If you are unsuccessful in a tender process, ask for a debriefing and treat it as an opportunity to improve future bids and build your relationship with the agency.
• If you have a concern or complaint about a tender process, approach the agency involved. If necessary, put your concerns in writing to allow the agency to respond formally.

More help

Many industry associations offer various forms of assistance to members in their business activities and dealings with government. There are also business consultants in the marketplace who specialise in helping suppliers to win government business.