Tendering Basics. Tasmanian Government Procurement. November Procurement and Property Branch

Transcription

1 Tendering Basics Tasmanian Government Procurement November 2014 Procurement and Property Branch

2 Government procurement policy Government procurement is governed by: Treasurer's Instructions - available at The procurement chapters of various free trade arrangements: o o o Australia and New Zealand Government Procurement Agreement Australia United States Free Trade Agreement 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 o eg: Aurora, Hydro, Transend, TT-Line, TasRail, Tasracing, Tasports, etc. 2

3 Procurement principles Core Procurement Principles: Value for money Open and effective competition Ethical purchasing/code of conduct 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 3

4 Procurement practices/processes Each agency is responsible for its own procurement Some whole-of-government contracts (eg: vehicles, advertising) Thresholds for procurement method: $50K at discretion of each agency between $50K and $250K (quotes) $250K (open tenders) Alternatives from prescribed processes for certain circumstances 4

5 Buy Local Policy Released 8 May 2014 Strengthens the procurement principle of enhancing opportunities for local business The Buy Local Policy primarily aims to: increase opportunities for local business to compete for Government business by: o requiring Government entities to take into account the wider community and social benefits of purchasing decisions; o providing businesses with information to increase future competitiveness; and o increasing agency awareness of the requirements and benefits of buying from local SMEs Limitations Restrictions on procurement practices by international agreements prohibit Government mandating local products or local suppliers - breaching obligations may invoke sanctions 5

6 New agency requirements Mandatory planning focusing on opportunities for local business Mandatory disaggregation of large or state-wide contracts If procurement $50K agencies must: seek at least one bid from a local business (where local capability exists); apply a local benefits test, through a mandatory evaluation criteria o criteria weighted min. 10% linked to suppliers local SME industry statement/tipp Agencies must report to Treasury on: relevant contracts not awarded to Tasmanian businesses exemptions from disaggregation successful supplier s TIPP executive summary published on Purchasing website 6

7 Promoting benefits of local suppliers For procurements $50k suppliers to provide as part of response either a: Tasmanian Industry Participation Plan (for procurements valued $5m); or Local SME Industry Impact Statement (for all other procurements) Agencies can only assess what is submitted Explain how your business will support the local SME industry if you are successful, eg: direct and indirect impact of the business (staff employed/jobs created in the State, goods/services to be purchased to complete the contract); opportunities you will provide for local SME companies and sub-contractors; any broader economic or community benefits promoted through your business. 7

8 Tips for improving competitiveness Understand what the Government wants Generally a supplier that can: meet all the agency s needs; deliver on time and in full; and provide the best value for tax payer s money Know how the Government buys Winning Government Business website ( 8

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11 Know where to find procurement opportunities Tasmanian Government Tenders website ( Provides information on anticipated and current tenders Registration is free and registered users can receive automatic notification of new tenders and download documents. Provides detail on awarded contracts $50k which may provide insight about: o o when recurrent contracts might be sought; and which agency to approach to request the chance to bid for a future opportunity. Check Tenders section of Saturday s newspaper Agencies advertise all open tenders in at least one local newspaper Make yourself known to agencies Market your business to key officers in each agency that buy what you sell Agency details and a list of products they purchase are published on the Winning Government Business website (located at 11

12 Get prequalified For certain categories, agencies can only engage contractors or consultants prequalified for building and construction/roads and bridges works. For prequalification guidelines and application forms, visit the Winning Government Business website ( Industry Capability Network Agencies consult ICN to identify local capability - register your business with ICN: Post tender debriefings Agency debriefs highlight where a tender is strong and areas for improvement Debriefing identifies how the offer could have been improved and will enhance your ability to successfully compete for future contracts 12

13 Prepare a conforming response 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 all forms including 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 13

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