In this video, we’ll step through a typical procurement lifecycle and outline how potential suppliers may engage at each step of the process, including:
- Market research and engagement
- Approaching the market
- Industry briefings
- Preparing a response
- Submitting a response
- Tender evaluation
- Contract negotiation, and
- Awarding contracts.
Let’s get started.
Market Engagement
Australian Government buyers have to identify a potential need to approach the market to ensure the market has the capability and capacity to provide the goods or services they require, buyers often conduct market research or engage with businesses to help them understand market conditions. Effective and timely market research or engagement can help inform how buyers determine the most effective approach to a procurement.
Market research and engagement should be focused on gathering collective market information, not selecting preferred suppliers.
If you are not sure if someone is approaching you for market research, or to seek a quote, ask them for clarification.
Approaching the Market
An ‘approach to market’ is a general term used by Australian Government buyers for any notice to potential suppliers to participate in a procurement (such as a request for tender, or a request for quote).
A buyer may approach the market in a number of different ways, such as:
- Open tenders, publicly listed on AusTender and open for all to submit a response
- Limited tenders, only made accessible to suppliers that are invited to submit a response, or
- Approaching suppliers through an existing panel arrangement.
Industry Briefings
For complex approaches to market, a buyer may conduct industry briefings for potential suppliers. These sessions give businesses an opportunity to engage directly with the buyer and increase understanding of tender requirements or processes, prior to submitting a tender response.
Questions and answers from industry briefing sessions are usually collated and provided to all potential suppliers participating in the process. Businesses are not identified in this process.
If there is no industry briefing offered, you can always ask the contact officer any questions you have about the procurement process or requirements.
Preparing a Response
In this step, potential suppliers prepare a response to the Approach to Market.
When responding to an approach to market, potential suppliers will need to submit a response that complies with the request documentation. Many request documents include a template for you to complete. You should ensure that you meet any conditions for participation, minimum content and requirements, address evaluation criteria, complete any mandatory forms or requirements, and demonstrate why your business should be selected.
Request documents and requirements can vary, so make sure you frame your response to the requirements of each individual procurement process.
Submitting a Response
Next, potential tenderers submit a response to the approach to market.
Lodgment timelines and processes are clearly outlined in the request documents. Responses to open tenders are usually lodged via AusTender. If there are alternative arrangements, this will be clearly outlined in request documentation.
For a limited tender, responses may be lodged via AusTender or by another lodgment means such as via email. Always refer to the request documentation about how, when and where to submit a response to an approach to market or request for quote.
Tender responses need to be lodged before the specified closing time and date. The CPRs prohibit the acceptance of late tenders, so be prepared to lodge your submission well ahead of time.
Tender Evaluation
Officials evaluate tender responses against any conditions for participation, the specified requirements, and the evaluation criteria. This evaluation is used to select a preferred supplier, or suppliers, which represent the best value for money outcome.
If your tender response does not meet conditions for participation, mandatory criteria, or minimum content and format requirements, it will be excluded from further consideration.
Contract Negotiation
Following tender evaluation, a contract may be awarded or negotiated with the preferred supplier. Depending on the nature and value of the procurement, organisations may use standard contracts such as a purchase order or the Commonwealth Contracting Suite.
For more complex procurements, the procuring organisation and supplier may need to negotiate specific terms, exclusions and inclusions to the contract.
In most cases, a draft contract will have been included with request documents to set expectations and clarify roles and responsibilities, and any non-compliances are likely to have been factored into the tender evaluation.
Awarding Contracts
Once a preferred tenderer and the procuring organisation have entered into a contract, all tenderers will be notified of the outcome.
All tenderers are entitled to request a debriefing from the officials who undertook the procurement. This is an opportunity to receive feedback on your tender response to help you compete more effectively in future procurement processes. Where requested by a tenderer, Australian Government organisations must provide feedback to the tenderer.
Contracts valued at $10,000 or more are publicly reported on AusTender within 42 days of entering into an agreement.
For further information, please visit sellingtogov.finance.gov.au.
