$80k - $200k

Procurements in this value range come with obligations under the Indigenous Procurement Policy (IPP) around using Indigenous businesses to deliver your goods or services.

► Check Supply Nation for an Indigenous supplier that can meet your requirements. This is a mandatory step.

If you find an Indigenous supplier that provides value for money, ensure that you record that you are using the IPP mandatory set aside in your documentation. This allows you to approach only those Indigenous supplier/s you identified..

If your requirement is not overly complex then you may wish to use the simplified process detailed in the $10k - $80k tab (even if your procurement is estimated at a greater value) beginning at Step C.2: Plan your procurement.

Standing offer arrangements (panels) are set up by entities for frequently sourced goods or services. To maximise competition, officials should, where possible, approach multiple suppliers on a standing offer.

The benefits in using a standing offer are:

• a competitive process has already been undertaken and suitable suppliers have been identified
• contract terms and rates have already been agreed
• entities may be able to use panels that have been set up by other entities which provide efficiencies to both purchaser and supplier.

► Review standing offer arrangements to see if there is a standing offer that suits your requirements.

If you find a standing offer, do not continue with this $80k - $200k process. Follow the Using an Existing Standing Offer process.

You need to understand the market from which you are going to procure. This will help you decide on the best approach.

► Are there many suppliers in the market or is it quite limited?

► Are these goods/services available off-the-shelf or do they require customisation?

► Are there any limitations in the market such as capacity to supply goods/services or availability of goods? Does this affect the price or the competitiveness of the market?

► Are there any other risks inherent in this market?

► Do you have a good understanding of the estimated price of your procurement?

► When procuring digital or ICT goods or services you should complete a self-assessment under the Digital Sourcing Consider First Policy.  A Consider First Assessment Tool can be found on the Digital Transformation Agency (DTA) website.

You will need to define your requirement in a way that can be easily understood by the supplier(s). This description will be key information in your approach to market (ATM) documentation.

Here are some tips:

► set out the specifications in terms of performance and functional requirements where applicable.

► specifications should be succinct and to the point - do not over specify.

►Limit Conditions for Participation to those that are essential to meet the requirements of the procurement - legal, commercial, technical and financial abilities or experience. Do not include any ‘nice-to-have’ elements, as any tender submissions that do not demonstrate their ability to meet the conditions for participation must be rejected. This means that they cannot be considered for the resultant contract.

► minimise the use of jargon and avoid the use of specific brands, products or trademarks (see CPRs 10.12)

► think about your required timeframes and if long lead times may be required

► consult subject matter experts where required (technical, operational etc.)

► include any relevant standards

Further information on developing a specification can be found here (CPRs 10.9 - 10.13).

► When procuring digital or ICT goods or services you should complete a Fair Criteria checklist under the Digital Sourcing Fair Criteria Policy.  The checklist can be found on the Digital Transformation Agency (DTA) website.

You need to decide the best way to approach the market to get the right outcomes for your procurement.

How will I approach the market?

Procurements valued at or above the relevant procurement thresholds (i.e. $80k for general procurements or $7.5m for construction procurements) are required to go to open tender unless an exemption or a condition for limited tender applies.

Exemptions to open tender

► Check CPRs Appendix A to see if your procurement is exempt from Division 2 of the CPRs.

If your procurement is exempt under this provision, Division 2 of the CPRs does not apply so exit this process and follow the $10K-$80K process from Step 2: Plan your procurement.

Conditions for limited tender

► Check CPRs 10.3 to see if your procurement may be carried out as a limited tender.

There are a number of circumstances where a limited tender may be more appropriate. If your procurement meets the requirements for a limited tender, you may approach a single supplier or a select number of suppliers rather than a full open tender. Some requirements under Division 2 of the CPRs still apply and they can be found at CPR 10.4. While you do not need to do an open tender, you will still need to follow this process.

► If using a limited tender condition continue this Step 5. Plan your procurement after the “note” box.

Using an open tender approach

If your procurement does not meet either of the above conditions for an exemption or limited tender, you will need to go to open tender.

In certain conditions a Public Interest Certificate (PIC) may be required for a procurement. Resource Management Guide (RMG) No. 422 - Handling complaints under the Government Procurement (Judicial Review) Act 2018 sets out the conditions when a PIC will apply and the process and timing for applying for one.

► Consider whether your procurement may require a Public Interest Certificate (PIC). If required you will need to apply for a PIC, include it in your approach to market and publish it on your entity’s website. Contact your central procurement team if you are unsure.

Procurement Plan

► Develop a procurement plan that records the issues you consider, the decisions you make and how you will approach the market. You may wish to use the CCS Procurement Plan .

► Conduct a risk assessment using your entity’s risk management framework and include in your procurement plan. If significant risks are identified you may need to develop a risk management plan.

► Gain your delegate’s approval for your procurement plan.

Now that you know the market and have assessed the best way to approach the market, you will need to assess whether any of the people connected with this procurement have a potential conflict of interest.

A conflict of interest arises where a person has an affiliation or personal interest that might prejudice, or be seen to prejudice, their impartiality.

► Ensure all people materially involved in the procurement process complete a conflict of interest declaration. Your entity may have a conflict of interest template.

► Discuss and manage any potential conflicts of interest in accordance with your entity's Accountable Authority Instructions (AAIs) (see your intranet or seek advice from your central procurement area).

When going out to potential suppliers, you MUST ensure that your approach is consistent and equitable to all potential suppliers.

► Develop your ATM documentation. For procurements valued under $200k, you MUST use the CCS approach to market template unless you meet one of the criteria outlined within RMG No. 420 Part 2 .

You will also need to document how you intend to evaluate the responses (evaluation criteria are set out in the CCS ATM terms). This should be done before you approach the market but MUST be done before any responses are received.

► Develop an evaluation plan.

Prior to approaching the market, you MUST obtain the endorsement of your delegate to proceed. This is because when you release your ATM you are obliged to continue the process to finalisation and award of contract should you find a suitable supplier (see CPRs 10.35).

► Ensure that unallocated funds are available.

► Obtain delegate endorsement for the release of your ATM. If you use the CCS procurement plan, an approval minute will have been generated automatically.

AusTender is the Australian Government’s procurement information system and is a centralised web-based facility that publishes a range of information, including entity’s approaches to market.

► For Open Tender: You MUST publish open approaches to market on AusTender. Do this as per your entity's established procedures (search your intranet or seek advice from your central procurement area).

► For Limited Tender: You may use AusTender or choose to publish and receive submissions in another manner (e.g. email, tender box).

If you are using a method other than AusTender you should ensure that you have suitable governance and processes in place for the receipt and opening of tenders.

Potential suppliers may seek clarification of information in the ATM documentation before the end of the closing time for questions, as outlined within the ATM.

► If you receive questions from potential suppliers during the tender period:

• if received prior to any closing of questions deadline, answer them promptly (in writing to all suppliers, without identifying the source of the question) - If published in AusTender, publish the responses as an addendum.
• if required to provide additional or revised material then ensure it is made available to all potential suppliers in a timely and equitable manner - this can be directly if undertaking a limited approach to the market and must be via an addendum openly on AusTender if undertaking an open approach to market.
• if you receive questions after the closing of questions deadline then you are not obliged to answer. However, you should consider responding if the issue risks compromising the procurement. If a change needs to be made that would impact on potential supplier submissions, you can consider extending the closing deadline.

► If a potential supplier requests an extension of time to submit their response, you are not obliged to agree. If you are considering granting an extension of time, your decision should be based on:

• whether genuine and reasonable grounds exist (e.g. not due to the potential supplier‘s disorganisation)
• it MUST not unfairly disadvantage any other potential suppliers and the extension is applied equally to all potential suppliers
• the request is received within a reasonable period before the closing deadline.

Procedures to receive and open ATM responses MUST guarantee fairness and impartiality and MUST ensure that ATM responses are treated in confidence (see CPRs 10.32 – 10.34).

► Download ATM responses from AusTender or open/collate responses if delivered in another manner.

► Responses MUST be treated as confidential before and after the award of a contract (see CPRs 7.23). Ensure that only those specified in the evaluation plan have access to the responses or information relating to those responses in accordance with the evaluation process.

► Follow the screening process as set out in your evaluation plan. This may include screening for:

• whether the response was received by the ATM closing time,
• completeness of the response,
• compliance with the minimum content and format requirements and
• conditions for participation.

► Exclude responses that do not meet the requirements of the screening process.

► Identify and manage new conflicts of interest (if any).

Evaluation of any responses to the ATM will need to follow your evaluation plan. Tender responses are confidential and should only be distributed to those in the evaluation team (see CPRs 7.23).

► Follow the process identified in your evaluation plan and evaluate against the criteria documented in your ATM. This will generally involve:

• each member of the evaluation team individually evaluating each of the responses
• the team then meeting to agree the strengths and weaknesses of each response. This will also generate the information for any future supplier feedback (see CPRs 7.6)
• the team recommending a preferred supplier(s), based on best value for money, to the delegate for approval. If no response represents value for money, your recommendation may be to stop this process and further refine the procurement

► Prepare an evaluation report based on your findings and recommendation (You may wish to use the CCS Evaluation Report) including identifying any issues for possible negotiation or reconsideration.

► Gain written delegate endorsement of the recommendations and your evaluation report.

You will need to prepare a draft contract that will incorporate the preferred supplier's ATM response.

► Draft a CCS Contract that meets your requirements and is consistent with your approach to market documentation and the preferred supplier's ATM response.

Once you have completed your evaluation and before entering an agreement, you MUST seek approval under section 23 of the Public Governance Performance and Accountability Act 2013 (PGPA Act).

► Prepare the PGPA Section 23 approval minute (if using the CCS Evaluation Report this will be automatically generated).

• Ensure that the evaluation recommendations and draft contract are attached.
• You should also include a list of any negotiation issues (if any). Note: the Commonwealth contract terms are not negotiable and the supplier should have agreed to these in their response.

► Submit to delegate for approval.

Once relevant approvals have been granted, you can notify the preferred supplier and proceed to finalise your contract.

There may be issues arising from the preferred supplier's tender that will need some level of negotiation or clarification.

► Notify the successful supplier. Notifying the successful supplier in writing (an email may be sufficient) provides a record of notification.

► If the delegate has agreed that negotiations are required, invite the preferred supplier to negotiations. Include an agenda identifying the issues to be discussed. (Note: the Commonwealth Contract Terms are not able to be negotiated).

► Conduct negotiations. Bring in subject matter experts if required.

► Document the outcome of the negotiations and seek agreement to the outcomes from your delegate.

► Incorporate agreed positions into the contract.

Once the contract has been agreed by you and the preferred supplier you can proceed to finalise your contract.

► Provide the final contract for signature. The preferred supplier is required to return a signed copy of the contract (either physically or electronically).

► The Commonwealth is also required to sign and return a signed copy of the contract to the supplier.

► After the contract has been formalised, enter this procurement into your entity's Financial Management Information System (FMIS). You may also be required to submit relevant supporting documentation.

► Entities MUST report contracts on AusTender within 42 days of entering into a contract (see CPRs 7.18). Your FMIS may facilitate this reporting or you may have to do this manually. Check with your CFO or your central procurement area.

Once the contract or purchase order has been formalised in step 16: Formalise Contract, you are required to notify other suppliers that provided responses

► You MUST notify the unsuccessful supplier(s). Notifying unsuccessful suppliers in writing (an email may be sufficient) provides a record of notification.

► You MUST offer all suppliers (including the successful supplier) the opportunity to receive feedback on their response.

You are required to retain all relevant documents in accordance with the Archives Act 1983 . Relevant documents include any documents that record decisions and/or approvals, including those with signatures.

► File documents in accordance with your entity's records management practices.

► Manage the contract. More information can be found in the Australian Government Contract Management Guide on the Department of Finance website.