Purchasing Overview

Legislative and policy framework

The Treasurer's Instructions (issued in accordance with the Financial Management and Audit Act 1990) establish the procurement principles, Government policy and mandatory procedures for procurement and contracting.

The 1100 and 1200 series relate to procurement of goods and services including building and construction / roads and bridges procurement; the 1300 series relates to disposals and office accommodation leases and the 1400 covers miscellaneous matters such as confidentiality, claims management and unsolicited proposals.

While not an exhaustive list, key publications include:

Document

Description

Treasurer's Instructions​Sets out the mandatory requirements that agencies are to apply in relation to procurement and disposal of assets.

Free Trade Agreements Guideline

Sets out the procedures and processes to be adopted when undertaking a procurement impacted by agreements that bind Tasmanian Government procurement. These are in addition to the mandatory requirements contained in the Treasurer's Instructions.

How to Assess Value for Money

Provides guidance on achieving value for money purchasing outcomes.

Crown Contracts Confidentiality Policy

Details the requirements of the Government's Confidentiality Policy in relation to all contracts entered into between the Crown and any other party.

Buy Local Policy: A Guide for Government Agencies

Provides information on the Government's Buy Local Policy requirements, as well as guidance on how to ensure that opportunities for local supplies are enhanced.

Procurement Practices Manual

A series of publications that provide guidance and information in relation to various stages of asset management including pre- and post-procurement stage guidance as well as mandatory and guidance information on the procurement processes for building and construction / roads and bridges. The manuals include:

Best Practice for the Engagement of Consultants - mandatory requirements and guidance information in relation to the engagement of consultants;

Best Practice for the Maintenance of Building Assets - advice on managing "asset maintenance risk"; and

Contract Documentation, Delegation and Risk - guidance information to assist agencies manage the Government's risk. It also sets out guidance information on documentation requirements, relating specifically to the Australian Standard General Conditions of Contract AS 2124-1992.

The National Public Private Partnership Policy and Guidelines

A public private partnership (PPP) is a method of procurement for social infrastructure projects and typically involves the government engaging the private sector to design, construction, finance and maintain social infrastructure, and deliver ancillary services, for a specific period.

Tasmanian government agencies should only consider a PPP where it can be clearly established that there is sufficient scale and market appetite in Tasmania for a PPP to provide value for money to the government.

If a PPP is being considered, agencies should refer to the National PPP Guidelines. The Guidelines have been prepared and endorsed by Infrastructure Australia and the State, Territory and Commonwealth Governments as an agreed framework for the delivery of PPP projects. Tasmanian government agencies considering a PPP should firstly contact the Department of Treasury and Finance.

Who do these purchasing policies and procedures apply to?

The Treasurer's Instructions apply to all entities (called agencies in this website) that are required to comply with the Financial Management and Audit Act 1990 together with any other entities required to comply by their enabling legislation. Refer to this list for further information.

These Treasurer's Instructions do not apply to State-owned Companies or Government Business Enterprises.

Which purchasing methodologies are used and when?

The purchasing methodology to be used by an agency depends upon the type and value of the purchase.

The following tables summarise the basic methodologies that buyers must generally apply to procurement of goods, services and products (including those related to building and construction/roads and bridges projects).

In some specific circumstance, alternative procurement methods may be able to be used (for example, direct/limited submission sourcing and purchasing from businesses that employ persons with disabilities).

Goods and Services (including leases or rentals of equipment)
Value (excluding GST)
Purchasing Methodology
Basic Requirements

Purchases where a common-use contract exists (regardless of value)

Common-use Contract

In accordance with Treasurer's Instruction 1112, agencies must use established whole-of-government common use contracts. The link on the left leads to a list of common use contracts and information on how they operate.

$50000 or less

Quotation process

At the discretion of the agency.

 

More than $50000 but less than $250000

Written Quotations

At least three (3) written quotes must be sought.

Where local capability exists, at least two (2) quotes must be sought from Tasmanian businesses.

$250000 and over

Open Tender

Where local capability exists, at least two (2) tenders must be sought from Tasmanian businesses.

The procurement opportunity must be advertised on the Tenders website.

Building and Construction - contractors
Value (excluding GST)
Purchasing Methodology
Basic Requirements

$50000 or less (minor works)

Quotation process

At the discretion of the agency.

More than $50000 but less than $250000 (minor works)

Written Quotations

A minimum of three (3) written quotations are to be sought.

Where local capability exists, at least two (2) quotes must be sought from Tasmanian businesses.

$250000 and over (major works)

Open Tender

Where local capability exists, at least two (2) tenders must be sought from Tasmanian businesses.

The procurement opportunity must be advertised on the Tenders website.

Where appropriate categories exist, only contractors prequalified with the Department of Treasury and Finance can be engaged.

Roads and Bridges - contractors
Value (excluding GST)
Purchasing Methodology
Basic Requirements

$50000 or less (minor works)

Quotation process

At the discretion of the agency.

More than $50000 but less than $250000 (minor works)

Written quotations

A minimum of three (3) written quotations are to be sought.

Where local capability exists, at least two (2) quotes must be sought from Tasmanian businesses.

$250000 and over (major works)

Open Tender

Where local capability exists, at least two (2) tenders must be sought from Tasmanian businesses.

The procurement opportunity must be advertised on the Tenders website.

The Department of State Growth operates a prequalification system and where appropriate categories exist, only those contractors prequalified with DSG can be engaged.

Building and construction/roads and bridges - consultants

Refer to Engaging consultants.


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