The Australian Government is accountable for the way it spends taxpayer’s money, and this means the process must be open, honest, and fair.
The Australian Government must follow certain rules when buying goods and services. These are outlined in the Commonwealth Procurement Rules (CPRs). The information available on this website, via the Guide to selling section, will give you an understanding of the obligations that relevant Australian Government organisations must comply with when procuring goods and services. These obligations are outlined in the CPRs.
Generally, the process is most structured for buying goods and services in excess of $80,000.
Below this threshold, Australian Government buyers must comply with the rules for all procurements, outlined in Division 1 of the CPRs, which is focused on ensuring Australian Government purchases achieve value for money .
Above this threshold, unless there are specific exemptions that apply, Australian Government buyers must comply with additional rules, outlined in Division 2 of the CPRs. For some Australian Government organisations, the threshold above which these additional rules apply is $400,000. For procurement of construction services, the threshold is $7.5 million. Australian Government buyers will take the relevant thresholds for their organisation into account when approaching the market.
Regardless of the specific process, achieving value for money is the core rule underpinning Australian Government procurement.
Value for money is to be achieved through:
- encouraging competition and non-discriminatory processes
- using resources in an efficient, effective, economical, and ethical manner
- making accountable and transparent decisions
- considering the risks
- conducting an efficient buying process.
This means that value for money is not just about price – decisions are based on an assessment of all the costs and benefits of each proposal against the original business need.
A value for money assessment may include consideration of factors such as:
- quality of the goods and services
- meeting the specifications (i.e. the goods or services are fit for purpose)
- experience and performance history
- flexibility, innovation, and adaptability for the duration of the contract
- environmental sustainability
- whole-of-life costs.
To better understand the specific requirements and processes that apply when selling to the Australian Government, refer to the Guide to selling section of this website.
