Who are you going to call… myth busters part 2

Author: 
John Sheridan - CIO & CISO

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Hi all,

We’re continuing with our series that addresses misperceptions about Australian Government procurement. The second of many myths is busted below, I’ll be continuing with more mythbusting over a series of weekly blogs.

Myth: the lowest bid always wins

Fact: We often hear concerns that the Government always selects the lowest cost tenderer. This isn’t the case. The Commonwealth Procurement Rules (CPRs) require entities to select the tenderer that provides the best value for money. It’s also incorrect that delegates can discriminate on the basis of the company size of the potential supplier. Determining value for money requires a comparative analysis of the relevant financial and non-financial costs and benefits of submissions. The CPRs provide a range of factors that should be considered in assessing value for money, including quality of goods and services, fitness for purpose, environmental impact, and whole of life costs.

Let me know your thoughts in the comments below, or email haveyoursay.procurement@finance.gov.au.

Regards

John

Comments (2)

Please identify the passage in the CPRs that supports your following assertion: "It’s also incorrect that delegates can discriminate on the basis of the company size of the potential supplier."

Thanks for your question. Paragraph 5.3 of the CPRs notes that the Australian Government procurement framework is non-discriminatory and that "All potential suppliers to government must, subject to these CPRs ... not be discriminated against due to their size ..."

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Last updated: 24 January 2018