Procurement

The process of selecting a supplier must ensure that ‘value for money’ is obtained and ‘fair trading’ is observed. A number of options exist and the process to be used will depend on the nature and the value of the items to be purchased.  The requirements for quotations are in the table below. 

It is recognised that there will be occasions where there are insufficient suppliers to meet purchasing policy requirements for multiple quotes. In such cases, these quotations should be obtained from the available suppliers and an Exemption from Quotation form be completed and approved.

Any conflict of interest, real or perceived, must be declared when selecting a supplier.

The “Value” referred to, relates to the total estimated cost value of a purchase (exclusive of GST) and not to individual line items.  This may include the initial cost of the item, plus all related costs such as delivery and installation, optional parts, maintenance and consumable items over the term of the contract.  Raising multiple purchase orders to reduce the individual costs of any one transaction is referred to as “splitting an order” and is not permitted.

For Indigenous businesses, there are different quotation thresholds, which align with our 2023-2025 Reconciliation Action Plan objectives, to remove barriers to procuring goods and services from Aboriginal and Torres Strait Islander businesses.

There are a few ways that an Indigenous supplier can demonstrate that they meet the requirements. To be a Certified Indigenous Business, they must be either:

• Supply Nation certified,
• a formally recognised Traditional Land Owner Corporation,
• a Prescribed Body Corporate; or
• an Aboriginal and Torres Strait Islander corporation that is registered with the Office of the Registrar of Indigenous Corporations (ORIC).

By checking that the supplier meets these requirements, we will have assurance that our business with them will help to support Indigenous economic development.

Procurements above $100,000 (ex GST) will require the development of an Acquisition Plan (approved by the University's Strategic Procurement Committee [SPC] or delegate) which considers a range of factors including value, risk, market forces, and other relevant aspects.  The optimum market strategy will be determined in conjunction with Procurement Services and may include one of the following approaches:

• Open-market Tender (e.g., Request for Proposal or Quote), or
• Selective Tenders (with a targeted number of providers), or
• Direct Negotiation (with a limited or single provider).

Procurement Services can further assist through the process which may include the following activities:

• Development of specifications and the market approach documents. 
• Determination of the evaluation process.
• Determination of the contract documents to be used (with Legal Services).
• Approaching the market.
• Evaluation of offers.
• Negotiation with suppliers.
• Development of the contract (with Legal Services).

Approval

Under the SPC Terms of Reference, procurements valued between $100,000 and up to $300,000 (ex GST) need approval from the Associate Director, Procurement Services.  Procurements valued above $300,000 (ex GST) need SPC approval. 

It is important to consider the Total Contract Value (TCV) when determining the procurement cost.  The TCV considers more than the initial purchase costs, and includes all other costs associated with the contract for that supplier.  This can include purchase costs, licence fees, maintenance costs over the term of the contract, implementation costs from the supplier and consumables costs.

Please note: the SPC meets once a month to discuss pending acquisitions so this needs to be factored into your purchase timeline. See SPC Meeting Schedule