Government Procurement
Useful for: Business, Government, Local Government
In Brief
- Businesses make purchasing decisions based on self-interest, but Governments must act in the public interest in the procurement of their goods and services (supplies).
- Businesses that take an “outcomes” approach to responding to Government requests and show Government they have a solid value proposition taking a holistic approach to Government’s needs will be well placed for favourable consideration in the assessment process.
- Government may release an approach to market that requires repairs to a government building. Sounds simple, but government is looking for more than simply the qualifications experience and capacity of a contractor to carry out the actual works. It is interested in where materials will be sourced (locally or overseas), the nature of the materials that will be used (are they from sustainable sources), who the workers on site will be (sub-contractor qualifications/adequate management resources/use of indigenous labour), whether technology or other innovations may result in the work being done faster, cheaper or more efficiently or sustainably. This is why the over-riding criterion of Value For Money, should not be assumed to equate to “the cheapest price”.
- Common approaches to market include Expressions of Interest, Request for Proposals, Request for Quotation, Request for Tender and Standing Offer Notices. The approach used will depend on the type and value of the procurement and what government needs to learn from the market before it can tell the market what it needs.
- Do not confuse the Conditions of Participation (which might also be called Conditions of Tender/Quotation), with the Request document that contains the Response Schedule where proponents set out the details of their bids. It is important to read and understand the Conditions of Participation before preparing a Response Schedule, to ensure you understand the rules of the particular procurement and meet the basic eligibility tests. There is no point in taking the considerable time and effort to prepare a response if your company is ineligible for one reason or another.
- Follow the prescribed format for the Response and ensure that every question and criteria is addressed honestly and fully. Government will carry out a range of due diligence enquiries on each response to inform its decision making on each criterion before assessment.
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