PROCUREMENTPROCESSCONSIDERATIONS

Practice
Step1:PlantheProcurementBasedonanIdentifiedNeed[practice.html#ref1]
Step2:ScopetheProcurement[practice.html#ref2]
Step3:DeterminetheProcurementMethod[practice.html#ref3]
Step4:PreparetoApproachtheMarket[practice.html#ref4]
Step5:ApproachtheMarket[practice.html#ref5]
Step6:EvaluateSubmissionsandConcludetheTenderProcess
[practice.html#ref6]

Step7:ManagetheContract[practice.html#ref7]

[practice.html]Step1:PlantheProcurementBasedonan

IdentifiedNeed
Determinetheobjectivesfortheprocurement.
Detailaclearscopeofrequirements.
ConsultentityCentralProcurementAreaforadvicewereappropriate.
Seekspecialistadvice,whereappropriate.
Researchthemarkettounderstandcapabilitiesandrestraints.
Ensureprobityarrangements[../../accountabilityandtransparency/ethicsand
probity/principles.html]areconsideredwhereappropriate.
Documentrelevantdecisionsandjustificationsrelatingtotheprocurement.
UnderstandandincorporateAustralianGovernmenttransparency
requirements.[../../accountabilityandtransparency/transparencyprocurement/principles.html]
[practice.html]Step2:ScopetheProcurement

Determinewhetherthegoodsorservicestobepurchasedaresubjectto
coordinatedprocurementarrangementsthatmustbeused.
Determineiftherelevantentityalreadyhasapanelormultiuselistcouldbe
used.

Considerwhetherthereareopportunitiesforcooperativeprocurement
[../../policyframework/cooperativeagency/principles.html].
Undertakedetailedresearchofthemarketifappropriate.
Estimatethevalueoftheprocurement[../../../commonwealthprocurementrules/cprs
procurementmethod.html#estimate]thismustbedone.
Whereprocurementsareunabletobevaluedorreliablyvalued,theymustbe
treatedasiftheyareovertherelevantthreshold.
Unlessaspecificexemptionapplies[../exemptionfrommandatoryprocurement
procedures/principles.html],entitiesmustcomplywiththeDivision2Additionalrules
forprocurementsatorabovetherelevantprocurementthreshold
[../../../commonwealthprocurementrules/cprsadditionalrulesforprocurements.html].
[practice.html]Step3:DeterminetheProcurementMethod

OpenTender
Involvesaonestage(ieRequestforTender),openapproachtothemarket.
Isthedefaultforallprocurementsvaluedabovetherelevantthresholds
($80,000fornoncorporateCommonwealthentities)
MustbeadvertisedonAusTender.

PrequalifiedTender
Involvesaprocurementfrom:
amultiuselist
atwostageprocess(eveniftheExpressionofInterestwassoughtas
anopenapproachtothemarket)or
alistofallpotentialsupplierswithaspecificlicenceorabilitytomeeta
legalrequirementthatisessentialtotheprocurement.

LimitedTender
Involvesprocurementbasedonquotesbeingsoughtdirectlyfromoneor
moresuppliers.
Includeswhatwaspreviouslyreferredtoassolesourceandselector
restrictedsourceprocurements.
Canbeundertakenforanyprocurementundertherelevantthresholdswhere
itrepresentsvalueformoney.
Canonlybeusedforprocurementsabovetherelevantthresholdswhereitis
specificallyallowedbytheCPRs.Thevalueandreasonsforthedirect
sourcemustbedocumented.
[practice.html]Step4:PreparetoApproachtheMarket

Putinplaceappropriategovernancearrangements.
Preparetenderevaluationplanandrequestdocumentation,that
appropriatelyincorporateProcurementConnectedPolicies[../../policy
framework/procurementpolicies/principles.html].
Seekdelegateclearance/approvaltoapproachthemarket.
[practice.html]Step5:ApproachtheMarket

Notifythemarketforopentendersthisinvolves(asaminimum),publishing
theopportunityonAusTender[ ][http://www.tenders.gov.au/].
Foropenandprequalifiedtenders,ensuretheminimumtimerequirementsof
theCPRsaremet.
Includeessentialinformation(eg.closingtime,lodgementmechanism,
evaluationcriteriaandmethodology,processrules,contactofficerandthe
possibilityofanindustrybriefing,sitevisit,and/ormidtermreview)inthe
requestdocumentationtoenablesupplierstodevelopandlodgecompetitive
andcompliantsubmissions.
Includeadraftcontractandstatementofcomplianceintherequest
documentation.
Useappropriatelimitationofliabilityandstandardcontractclauseswhere
available.
Donotuseunnecessarymandatorylanguage(i.e.must,will),jargonand
acronymsfromtherequestdocumentation.
Ensureclarificationsoradditionalmaterialsaremadeavailabletoallpotential
suppliersinatimelyandequitablemanner.
Donotmateriallychangetheevaluationplanaftertheopeningof
submissions.
[practice.html]Step6:EvaluateSubmissionsandConcludethe

TenderProcess
DealwithunintentionalerrorsintendersinaccordancewiththeCPRs
[../../../commonwealthprocurementrules/cprsadditionalrulesforprocurements.html#receipt].
DealwithlatetendersinaccordancewiththeCPRs[../../../commonwealthprocurement
rules/cprsadditionalrulesforprocurements.html#late].
Ensuretheprocurementprocessis/wasfair,equitableandwillstandupto
scrutiny,includingthattheevaluationisconductedinaccordancewiththe
TenderEvaluationPlan.
EnsuretheprocessisconsistentwiththeCPRs,includinginrelationto
handlingcomplaints[../../accountabilityandtransparency/complaintshandling/principles.html].
Undertakeafinancialviabilityassessment(s)[../../contractissues/assessingfinancial
viability/principles.html]ofthepreferredsupplier(s)ifnecessary.
Providesufficientdocumentationandinformationtothedelegatetoenable
themtomakeaninformeddecision.
Ifrequiredbyyourentity'sAccountableAuthorityInstructions,obtain
delegateapprovalinaccordancewiths18ofthePGPARulesandtwosigned
copiesofthecontract(onefortheentity,theotherfortheserviceprovider).
Adviseunsuccessfultenderers[../../accountabilityandtransparency/providing

feedback/principles.html]andwhererequested.

Reportcontractsvaluedat$10,000(GSTinclusive)andoveronAusTender
[https://www.tenders.gov.au/][

][http://www.tenders.gov.au/].

[practice.html]Step7:ManagetheContract

Developacontractmanagementplantoassisttheentitytounderstandand
implementobligationsunderthecontract.
Assesscontractextensionoptions[../tenderevaluation/principles.html]onavaluefor
moneybasisinaccordancewiththetermsofthecontract.
EnsurecompliancewiththeProcurementOnTimePaymentPolicyforSmall
Business[/resourcemanagement/spending/payontimepolicy/additionalinformation/].
Appropriatelyconsiderand,asappropriate,issuecontractvariations.
Consideranyobligationsthatsurvivethecontractenddateorterminationof
thecontractsuchasconfidentiality.
Lastupdated:29May2015