PROCUREMENT PROCESS CONSIDERATIONS

Practice


Step 1: Plan the Procurement Based on an Identified Need

  • Determine the objectives for the procurement.
  • Detail a clear scope of requirements.
  • Consult entity Central Procurement Area for advice were appropriate.
  • Seek specialist advice, where appropriate.
  • Research the market to understand capabilities and restraints.
  • Ensure probity arrangements are considered where appropriate.
  • Document relevant decisions and justifications relating to the procurement.
  • Understand and incorporate Australian Government transparency requirements.

Step 2: Scope the Procurement

Step 3: Determine the Procurement Method

Open Tender
Limited Tender
  • Involves procurement based on quotes being sought directly from one or more suppliers.
  • Includes what was previously referred to as ‘sole source’ and ‘select’ or ‘restricted’ source procurements.
  • Can be undertaken for any procurement under the relevant thresholds where it represents value for money. 
  • Can only be used for procurements above the relevant thresholds where it is specifically allowed by the CPRs. The value and reasons for the direct source must be documented.

Step 4: Prepare to Approach the Market

Step 5: Approach the Market

  • Notify the market – for open tenders this involves (as a minimum), publishing the opportunity on AusTender[External Link].
  • For open tenders, ensure the minimum time requirements of the CPRs are met.
  • Include essential information (eg. closing time, lodgement mechanism, evaluation criteria and methodology, process rules, contact officer and the possibility of an industry briefing, site visit, and/or mid-term review) in the request documentation to enable suppliers to develop and lodge competitive and compliant submissions.
  • Include a draft contract and statement of compliance in the request documentation.
  • Use appropriate limitation of liability and standard contract clauses where available.
  • Do not use unnecessary mandatory language (i.e. ‘must’, ‘will’), jargon and acronyms from the request documentation.
  • Ensure clarifications or additional materials are made available to all potential suppliers in a timely and equitable manner.
  • Do not materially change the evaluation plan after the opening of submissions.

Step 6: Evaluate Submissions and Conclude the Tender Process

  • Deal with unintentional errors in tenders in accordance with the CPRs.
  • Deal with late tenders in accordance with the CPRs.
  • Ensure the procurement process is/was fair, equitable and will stand up to scrutiny, including that the evaluation is conducted in accordance with the Tender Evaluation Plan.
  • Ensure the process is consistent with the CPRs, including in relation to handling complaints.
  • Undertake a financial viability assessment(s) of the preferred supplier(s) if necessary.
  • Provide sufficient documentation and information to the delegate to enable them to make an informed decision.
  • If required by your entity's Accountable Authority Instructions, obtain delegate approval in accordance with s18 of the PGPA Rules and two signed copies of the contract (one for the entity, the other for the service provider).
  • Advise unsuccessful tenderers and where requested provide a debrief.
  • Report contracts valued at $10,000 (GST inclusive) and over on AusTender[External Link].

Step 7: Manage the Contract

  • Develop a contract management plan to assist the entity to understand and implement obligations under the contract.
  • Assess contract extension options on a value for money basis in accordance with the terms of the contract. 
  • Ensure compliance with the Supplier Pay on-Time or Pay Interest Policy.
  • Appropriately consider and, as appropriate, issue contract variations.
  • Consider any obligations that survive the contract end-date or termination of the contract such as confidentiality.

Last updated: 22 October 2018