An overview of Government procurement

1. An overview of Government procurement Procurement and Property Branch

2. Government procurement policy • Government procurement governed by: • Treasurer's Instructions (established under Financial Management and Audit Act 1990) - available at www.treasury.tas.gov.au; • The procurement chapters of various free trade arrangements: • Australia and New Zealand Government Procurement Agreement; • Australia – United States Free Trade Agreement; and • Other approved FTAs (eg Chile FTA). • Government procurement policy applies to all inner Budget agencies (and some related entities): • but not to Local Government or Government owned businesses (eg Aurora, Hydro, Transend, TT Line, Tasrail, Tasracing, Tasports etc). Department of Treasury and Finance

3. Procurement principles • Core Procurement Principles: • Value for money; • Open and effective competition; • Conducting purchasing activities ethically and in accordance with the code of conduct; and • Enhancing opportunities for local business. • All Government procurement must be undertaken in accordance with these principles: • Expending public monies requires high ethical standards and sound justification of the expenditure. Department of Treasury and Finance

4. Procurement practices/processes • Under the principles, instructions and processes for various types of Government purchasing: • Thresholds for procurement method: • All procurements – $10K or less at discretion of each agency; • Goods & services – over $10K to under $100K (quotes), $100K and above (open tenders); • Building & construction – over $10K to under $100K (quotes), $100K and above (tenders); • Roads and bridges – over $10K to under $250K (quotes) and $250K and above (tenders). • Prequalification for building and construction procurements. • Exemptions from prescribed processes for certain circumstances. • Each agency is responsible for its own procurement: • Some whole of Government contracts (eg: vehicles, advertising, ICT). Department of Treasury and Finance

5. Tasmanian businesses • Government agencies must ensure local businesses are given the opportunity to compete for Government business: • Approach local suppliers (ICN help agencies identify local businesses); • Account for benefits of buying locally in value for money assessment; • Debrief (on request) suppliers to improve future competitiveness. • Enhancing opportunities for local business does not equate to giving preference to local business: • Restrictions on procurement practices by international agreementsprohibit Government mandating local products or local suppliers; • To do so would breach obligations and may lead to other states and party countries invoking sanctions. • During 2011-12, Tasmanian businesses successful in around 88 per cent of open Government procurements in which Tasmanian business competed. Department of Treasury and Finance

6. Prequalification • Agencies required to use prequalified consultants/contractors, where categories exist, for building & construction, maintenance and roads & bridges above certain values. • For works outside the prequalification categories, assessment of the capacity of contractor/consultant is part of the evaluation process. • There are three prequalification schemes: • Austroads National Prequalification System for Civil (Road and Bridge) Construction Contracts (for contractors); • Treasury Prequalification Scheme for Building and Construction (contractors $100K and above, consultants all procurements); and • National Prequalification System for Non-residential Building at or above $50 million (for contractors). Department of Treasury and Finance

7. The procurement process • Agency releases request for tender (open to all) or quotation (selected parties) with: • conditions of procurement, conditions of contract, specification and response form/schedule. • Interested suppliers provide submissions, including signed response forms, prices and all required information. • Agency evaluates submissions, identifies preferred supplier and commence contract negotiations. • Unsuccessful suppliers should ask for a debrief once advised of process outcome: • Agencies must advise all tenderers of the outcome of the process and offer a debrief. Department of Treasury and Finance

8. Tips and checks • What are the evaluation criteria?: • This is what the agency will use to evaluate your submission – make sure your submission provides compelling information for each criterion. • Ensure you can meet any mandatory criteria (eg licensing or qualifications). • Present information clearly and concisely: • If no response schedules are provided, then list each evaluation criterion as a heading, avoid jargon and provide any detailed information as appendices. • Make yourself known to the contact officer: • A simple call to say you will be submitting and to clarify what is really important to the agency is a highly effective strategy. • Ensure you fully complete the price/cost schedule (check whether prices are ex/inc GST) and sign the response form. • Make your bid competitive – it is about value for money to the Government (and therefore to Tasmanian taxpayers). • Start your submission early and submit on time. Department of Treasury and Finance

9. On-line resources for business • Winning Government Business website for suppliers: • Resources, tips and advice on how to find and win business with the Government. • www.purchasing.tas.gov.au > Winning Government Business. • The Tasmanian Government Tenders website. • Information on anticipated, current and closed procurements (valued at $100K or more) and details of awarded contracts (valued at $50K or more). • Automatic email notification of new Tenders to registered suppliers. • www.tenders.tas.gov.au. • New guides and documents to assist small business: • New Buy Locally Guides to assist: • suppliers to highlight the benefits of buying locally in their submissions; and • Government buyers assess the impacts of buying locally in their tender evaluations. • Simplified procurement documents for low value/low risk Government procurements (generally those less than $100K). Department of Treasury and Finance

10. Registering on www.tenders.tas.gov.au • Suppliers can register (free of charge) to: • Receive updates on procurements in various categories; and • Download tender documents and electronically lodge tenders (for procurements where allowed). Department of Treasury and Finance

11. Registering on www.tenders.tas.gov.au • Click on the register link and fill in the basic account details, then select the register button. Department of Treasury and Finance

12. Registering on www.tenders.tas.gov.au • The website will send an email to the address entered in the previous step. • Click on the link to proceed to the final step. Department of Treasury and Finance

13. Registering on www.tenders.tas.gov.au • Fill in the remaining details of your account. • If you wish to be notified of procurements by email, ensure that you select the option and the categories which are appropriate to your business. • This page also contains a link to information on each category. Department of Treasury and Finance

14. Contact information • Tender/Quotation contact officer: • details provided in procurement documentation issued. • Agency procurement officers: • Listed on www.purchasing.tas.gov.au>winning government business. • Tasmanian Government Tenders website: • Website: www.tenders.tas.gov.au • Telephone: 6233 3885 • Email: tenders@treasury.tas.gov.au • Treasury Prequalification Scheme Building and Construction and NPS for Non-residential Building: • Telephone: 6233 2917 • Email: prequalified@treasury.tas.gov.au • Department of Infrastructure, Energy and Resources - Austroads NPS for Civil (Road and Bridge) Construction Contracts: • Website: http://www.transport.tas.gov.au/road/contract_tenders Department of Treasury and Finance