Welcome
Welcome to the Selling to Government section of the State Procurement Board website, which is designed to assist suppliers' understanding of how procurement operates within the SA Government.
This information presents an across-government perspective of what is a broad and complex issue. It will continue to be updated over time to ensure it contains relevant and contemporary information for the use of existing and potential suppliers to the SA Government and encourage their active participation in opportunities to supply to Government.<<top
Overview
Procurement
Procurement within the SA Government is governed by the State Procurement Act 2004 and is the responsibility of the State Procurement Board.
Procurement includes "procurement operations" which is the management of:
- goods and services;
- the supply of electricity, gas or any other form of energy; and
- intellectual property.
In practice, procurement involves:
- planning for the procurement;
- the selection process;
- establishing and managing contracts; and
- the disposal of goods surplus to requirements.
Procurement is conducted on the basis of value for money and competition facilitates this by providing access by suppliers to government procurement opportunities.
Public authorities must comply with bilateral free trade agreements to which the SA Government is a signatory. Further information on this topic can be found in the International Obligations Policy.<<top
Policies
The State Procurement Board policy statements themselves are not intended to be prescriptive. This approach enables the Chief Executives of public authorities to develop strategies that will most effectively meet their business needs. Chief Executives will ensure that all procurements are consistent with the State Procurement Board policies.
To view the current State Procurement Board policies, see the “Policies and Guides” section of this website.
Public Authorities
Public authorities are required to follow State Procurement Board policies. These include government agencies and instrumentalities, (which includes all South Australian Government departments and their administrative units) certain statutory authorities and corporations as defined by the State Procurement Act 2004.
Subject to State Procurement Board policies, each public authority can develop their own procurement processes and procedures, meaning that these may vary from one public authority to another. Public authorities are responsible for making purchases and are also generally responsible for conducting their own procurement processes to select suppliers and establishing supplier arrangements.
For further information about who undertakes procurement and the purchasing requirements for public authorities, please refer to individual agencies. A list of agencies can be found at
http://www.sacentral.sa.gov.au/site/page.cfm?u=52&area=2&path=4372,4373&listMode=listLinks.
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Supplier Resources
Introduction
The range of procurement undertaken by different public authorities within the SA Government to meet their business requirements is extensive, reflecting the diversity of government operations. The State Procurement Board establishes some across-government supply contracts (strategic contracts) for a range of common use commodities. However, government officers within public authorities are responsible for identifying procurement needs and undertaking procurement processes to meet their own specific requirements.
It is important that suppliers recognise that the SA Government is not one market but a combination of many diverse markets with unique needs and it is therefore essential for prospective suppliers to research and accurately target the relevant public authorities most likely to utilise their goods and services. To this end the information contained in Selling to Government is designed to assist suppliers in this process and to increase their understanding of how SA Government procurement operates.
In addition, the
Suppliers Guide to Winning Government Business was developed to assist businesses to better position themselves to access this business.
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Ethical Behaviour
Government buyers must behave ethically and comply with a code of conduct. Similarly, suppliers are to refrain from offering inducements, incentives or gifts, which could be seen to compromise the impartiality of government officers.<<top
Current Tenders
All public authorities are required to use the SA Tenders and Contracts website at http://www.tenders.sa.gov.au/ to advertise their tenders. This website provides a consolidated listing of South Australian State and Local Government tendering and bidding opportunities on one convenient website.
New tenders are also advertised in the SA Business Journal of the Tuesday edition of The Advertiser newspaper; and where appropriate, in Australian national, state and regional newspapers.
Suppliers can register as users of the SA Tenders & Contracts Website, which is free of charge and once registered can:
- elect to receive automatic e-mail notifications of procurement opportunities relevant to their business as they are advertised;
- view tender documentation and information; and
- download tender documentation electronically via the Internet.
The site also offers secure electronic lodgement of responses to certain tenders. To access the SA Tenders and Contracts website please click here.
The tenders are first listed under the relevant UNSPC Category and then by the date the tender closes. For further details about the purpose, application and nature of the common identification system utilised by the Government of South Australia please refer to State Procurement Board Policy Number 7, Common Identification Systems.
Go to
http://www.tenders.sa.gov.au/ and view the current list of advertised opportunities and to register as a user. For further information about the SA Tenders and Contracts website please refer to
Frequently Asked Questions.
Future Tenders
The Future Tenders section of the SA Tenders and Contracts website is designed to provide the supply market with advance notice of future procurement opportunities, prior to a formal market approach. Industry briefings for certain procurements may also be published here.
Not all future tenders will be listed here and a listing does not necessarily mean that the tender will be issued. However, this process is designed to provide advance notice to the supply market of future tenders and industry briefings. The degree of detail provided for opportunities advertised on this section will vary and may be subject to change.
Opportunities are grouped according to the category, and then sorted in date order. To navigate to a specific category, click on the category link at the top, or scroll down using the vertical scroll bar.
Please click on Future Tenders to view this section.<<top
Awarded Contracts
Certain contracts that meet specific criteria are published pursuant to the Government's Contract Disclosure Policy. For further details about this policy, go to http://www.premcab.sa.gov.au/dpc/publications_circulars.html and refer to PC027 Disclosure of Government Contracts. To view these disclosed contracts, which are listed by public authority, click here.
Perusing these contracts can provide an indication of the types of contracts currently in place and the types of goods and services required by different public authorities to meet their business needs.<<top
Strategic Contracts
As part of procurement reform, different types of strategic contracts have been established to support procurement needs. Information regarding a range of strategic contracts which are currently in place is available from the Strategic Contracts section of this website. <<top
Market Approach Methods
The procurement methods utilised and type of arrangements established for different goods and services depend upon:
- the SA Government's objectives;
- value;
- applicable policies;
- the nature of the goods/services;
- when the requirement is needed; and
- the complexity of the procurement, including its strategic importance, market, scope of goods/services and associated risks.
Government officers responsible for procurement are required to determine the most appropriate procurement method for the requirement, which should, wherever practicable:
- provide for open and effective competition;
- be based upon achieving the best outcome for the SA Government, taking into account the Government's business requirements; and
- seek to achieve maximum value for money.
The following information is provided as a guide only, as the requirements for and use of these methods will vary within and between public authorities. For example, the method selected may also depend upon the complexity of the goods and services, their availability in the market place and the urgency of the requirement, in which case the methods of purchasing will vary.
The methods of approaching the market may include:
Verbal Quote
Written Quote
Request for Quotation (RFQ)
Request for Information (RFI)
Request for Proposal (RFP)
Expression of Interest (EOI)/Registration of Interest (ROI)
Request for Tender (RFT)
Selective Request for Proposal/Request for Tender/Registration of Interest
Direct Negotiation
Verbal Quote
What is a verbal quote?
A verbal quotation is provided for the supply of specified goods and/or services.
Why use a verbal quote?
For low value, low complexity, low risk purchases, or with values that fall within State Procurement Board policy parameters and public authority designated thresholds for seeking verbal quotations.
How is it done?
A request may be sought verbally (usually via the telephone) or by letter, facsimile or other means, which requires the supplier to provide the quotation verbally.
What is sought?
A verbal quotation usually includes price and any other details sought in relation to the supply of the specified requirement.
Other relevant information
As only quotations may be sought rather than a formal market approach (eg. request for tender), making your goods and services known to the relevant government purchasing officers may be appropriate for particular goods and services.
Written Quote
What is a written quote?
Written quotation for the supply of specified goods and/or services.
Why use a written quote?
For low value, low complexity, low risk purchases, or with values that fall within State Procurement Board policy parameters and public authority designated thresholds for seeking written quotations.
How is it done?
A request may be sought either verbally, (usually via the telephone) or by letter, facsimile or other means but requires the supplier to provide the quotation in a written format.
What is sought?
A written quotation usually includes price and any other details as sought in relation to the supply of the specified requirement.
Other relevant information
As quotations may be sought directly rather than a formal market approach (eg. request for tender), making your goods and services known to the relevant government purchasing officers may be appropriate for particular goods and services.
Request for Quotation
What is a Request for Quotation?
Often referred to as an RFQ, it is a written document requesting offers of price for specific goods and/or services, usually against standard conditions. Usually the RFQ includes:
- an accurate description and specification of the goods or services required;
- required quantity;
- service standards including delivery date, time and location; and
- requirement for a firm price.
Why use a Request for Quotation?
For requirements that are usually of low value, low complexity, low sensitivity and low risk.
An RFQ can also be used to purchase from existing panel contracts.
How is it done?
Request for Quotation documents are provided to selected suppliers to complete. These may be provided directly to selected suppliers or made available on the SA Tenders and Contracts website.
What is sought?
A written quotation including price and any other details sought regarding the requirement.
Other relevant information
As quotations may be sought directly rather than a formal market approach (eg. request for tender), making your goods and services known to the relevant government purchasing officers may be appropriate for these particular goods and services.
Request for Information (RFI)
What is a Request for Information?
Often referred to as a RFI, it is usually in the form of a brief that is short but broad in scope and requires minimal resources from all potential suppliers to provide the information.
Why use a Request for Information?
This is usually used at the planning stage of a procurement activity, to obtain more information about the acquisition and to assist with further definition of the goods and/or services being sought. It provides all suppliers with early and equal opportunity to present information regarding the proposed acquisition.
How is it done?
These may be advertised on the SA Tenders and Contracts website.
Other relevant information
An RFI is not used to identify or select suppliers. If the acquisition process continues, another market approach may occur at a later date.
Request for Proposal (RFP)
What is a Request for Proposal?
Often referred to as a "RFP", it is an invitation to offer, seeking a specified requirement based upon functional and/or performance specifications with scope for variety and innovation. It asks potential suppliers to suggest ways and means of meeting the identified needs.
Why use an RFP?
When the requirement can be reasonably well defined in terms of desired outcomes but suppliers are encouraged to present flexible and innovative market-based solutions, resulting in a variety of solutions being offered.
How is it done?
All public authorities are required to advertise Requests for Proposal on the SA Tenders and Contracts website. They will also appear in the Monday edition of The Advertiser newspaper and where appropriate, selected regional, State, and National newspapers.
What is sought?
A wide range of options, alternatives and new advanced technologies may be offered by suppliers to meet the specific requirement.
Other relevant information
A RFP is generally a single-stage procurement process. Where appropriate a selective Request for Proposal may be conducted.
Expression of Interest (EOI)/Registration of interest (ROI)
What is an Expression of Interest or Registration of Interest?
Often referred to as an EOI or an ROI, this is a written request that outlines an intention to acquire goods or services and invites suppliers to indicate their interest in meeting the requirement. It allows for an exploration of the market and an opportunity to identify the level of interest in supplying the requirement.
Why use an EOI or ROI?
The requirement may not be clearly defined but a general description should allow the supplier to assess their ability to supply.
How is it done?
Usually a two-step process, the first stage involves an invitation for suppliers to register or express their interest for the supply of the requirement. A written invitation is usually issued publicly through the SA Tenders and Contracts website or directly to prospective suppliers from them to express their interest in a proposed procurement.
After evaluation of the responses to the first stage, the process may also include a second stage, which may involve:
- the calling of competitive tenders from all registrants; or
- tenders from a selected list of suitable registrants; or
- direct negotiations with one or more registrants.
What is sought?
It is an invitation for a potential supplier to register or express their interest for the supply of the requirement.
Other information sought could include:
- Details of previous relevant experience;
- Ownership details; and
- Profitability & turnover.
Other relevant information
As the requirements in the ROI/EOI documentation tend to be broader and more general, this encourages an environment of open competition.
Request for Tender (RFT)
What is a Request for Tender?
Often referred to as an "RFT", it is a document comprising of specified terms, a specification, set tender period and closing date. It invites suppliers to provide their most appropriate product or service to meet the particular specification, by submitting a response in the manner prescribed, including price.
A typical RFT document may include:
- Detailed specifications (the project requirement);
- Details of commercial requirements;
- Defined outcomes/deliverables;
- Specific delivery date, time and location information; and
- Price schedule.
Why use a Request for Tender?
An RFT is appropriate where there is a clear set of specifications, goods and services are required over a specific period of time and the requirement is fairly well known and fixed.
How is it done?
A publicly advertised invitation to offer based around a clearly defined and specific statement of requirements. All public authorities are required to advertise their tenders on the SA Tenders and Contracts website. They will also appear in the Tuesday edition of The Advertiser newspaper (SA Business Journal) and where appropriate, selected regional, State, and National newspapers.
What is sought?
A response to the tender requirements, including the specification and demonstration of the supplier's ability to meet the requirement and value for money, in addition to compliance with contractual requirements.
Other relevant information
An RFT may arise from an earlier evaluation of responses from another market approach, including, for example, a Request for Information or an Industry briefing.
Selective Request for Tender/ Registration of Interest/ Request for Proposal
What is a Selective RFP/ROI/RFT?
This is a document inviting only selected suppliers to respond, by submitting a response in the manner prescribed.
Why use a selective RFT/ROI/RFP?
This method may be used where there is sufficient evidence that an open or public market approach is not warranted, for example, due to:
- the existence of only a few suppliers in the market which are capable of supplying the requirement;
- a genuine urgency for the requirement. eg. unforseen Government policy decision;
- the need for compatibility with existing equipment or services; or
- potential suppliers have already been identified in a pre-qualification or pre-selection exercise.
How is it done?
Documents are provided directly to selected suppliers and may also be made available on the SA Tenders and Contracts website for selected suppliers to download and submit their responses electronically.
What is sought?
The same type of response is required as for an open or public approach (refer to Request for Proposal (RFP), Expression of Interest (EOI)/Registration of interest (ROI), Request for Tender (RFT)). This will include a written response to the requirement and if applicable, specification including a demonstration of the supplier's ability to meet the requirement and value for money, in addition to compliance to any applicable contractual requirements.
Other relevant information
A Selective Request for Tender is often used after responses from an Expression of Interest have been received and considered.
Direct Negotiation
What is direct negotiation?
The setting aside of a competitive process to directly negotiate with a particular supplier for the provision of goods and/or services to meet a specific requirement.
Why use direct negotiation?
This strategy may be appropriate in situations due to clearly identified and substantial factors, which may include:
- a single source of supply;
- compatibility with existing infrastructure;
- urgent/unforseen requirements;
- procurement involves goods or services which are unique or the requirement is complicated;
- another method would not provide fair and competitive bidding due to market factors;
- there may be significant public risk if the procurement is delayed by process requirements, such as emergency situations; or
- reasonable prices cannot be assured or agreed by any other method.
How is it done?
Without a formal or open market approach a particular supplier is directly engaged to negotiate for the provision of the particular requirement.
Other Relevant Information
Apart from direct negotiation, suppliers may be engaged to negotiate for the provision of goods and services as an adjunct to another procurement process (eg. Request for Tender, Expression of Interest.)
Procurement Arrangements
After approaching the market and conducting the selection process, different types of arrangements may be established to satisfy the South Australian Government's needs for the purchase of goods and services, including:
Direct Contracting
Panel Contracts
Pre-Qualification
Direct Contracting
A contract is established with a single supplier to be used exclusively or predominantly.
Panel Contracts
A panel of selected suppliers, established for a specified period of time, from which public authorities can select any of the suppliers to provide goods or services to meet their requirements, without the need to undertake a new market assessment each time.
Established under a head agreement, this provides the capacity to supply and the opportunity for competition between suppliers, with public authorities usually seeking bids from panel suppliers. Suppliers are usually not guaranteed any minimum amount of work under these arrangements.
These may be established for use across-government, specific to an individual public authority or selection of public authorities. Please refer to the Strategic Contracts section on the State Procurement Board website, for examples of existing panel arrangements.
Pre-Qualification
Suppliers must meet minimum prerequisites to be able to supply a good or service. Generally, suppliers still have to bid for work under the arrangement, either by providing a quotation or responding to a tender. These are usually established to satisfy the specific requirements of individual public authorities.
Construction/Works
Public authorities are responsible for undertaking or utilising existing arrangements for the procurement of goods and services for minor works and, in some cases, major works. However, most government authorities are required to use Building Management, Department for Transport, Energy and Infrastructure (DTEI) for major works projects, which undertakes construction/works related procurement on behalf of government agencies. However, these processes are not subject to the existing State Procurement Board procurement framework and the Board policies are not applied.
Building Management is involved in calling and accepting tenders for major building and construction projects and for managing the procurement services for building maintenance. Further information and contacts regarding building and construction can be obtained at the DTEI Building Management website, http://www.buildingmanagement.sa.gov.au/ including current and proposed building tenders, conditions of tendering and pre-qualification for these projects.
Transport SA is also responsible for buying goods and services related to construction works for the transport system. For further information regarding these projects including current and awarded tenders, industry briefings, pre-qualification, specifications, contractor training requirements, OHS & W and sub-contract policy regarding these contracts, go to http://www.transport.sa.gov.au/contracts_tenders/index.asp.
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Page Last Updated: 28 November 2007
