Glossary

A, B, C

Agency

For the purposes of this website, agency or inner-Budget agency refers to those government entities that are subject to the Financial Management and Audit Act 1990.

Alternative Tender

An alternative tender is a tender that offers an alternative proposal that still satisfies the agency's requirements. Alternative tenders will not be considered unless they are allowed for in the Conditions of Tendering/Conditions for Quotation of a procurement process.

Australia and New Zealand Government Procurement Agreement (ANZGPA)

The Australia and New Zealand Government Procurement Agreement is a cooperative arrangement between the Australian Government, the New Zealand Government and all state and territory governments. It ensures that Australian and New Zealand suppliers are given equal consideration and opportunities to contract for the supply of goods and services to the Commonwealth, state and territory governments.

Building Construction procurement

Procurement related to the construction and refurbishment of buildings and residential properties, and associated maintenance (services and residential) and professional services (eg architects).

Common Use Contract

A whole-of-government contract established by the Department of Treasury and Finance for the supply of goods and services. Generally, a Common Use Contract must be used by inner-Budget agencies and may also be accessed by other approved government organisations. Examples include the whole-of-government contracts established contained in Instruction 1112.

Conditions of Contract

Defines the rights and obligations of both parties once the contract has been awarded. This includes insurance requirements, price variation clauses, appointment of sub-contractors etc.

Conditions of Tendering/Conditions for Quotation

The rules governing what the supplier submission should contain, how it should be submitted, and how it will be evaluated.

There are general conditions that apply to all tenders, such as treatment of late tenders. Specific rules can also be added that apply to an individual tender, for example, providing draft designs and gaining access to the site.

Consultant

A particular type of contractor (refer contractor definition below) who is engaged to provide recommendations or specialist or professional advice (or more generally non-manual services) to assist or influence agency decision making.

Contract

A contract is an obligation, such as an accepted offer, between competent parties upon a legal consideration, to do, or abstain from doing, some act.

Contractor

An individual or organisation engaged under a contract (other than as an employee) to provide goods and/or services to an agency. A contractor will usually work under the supervision of an agency manager.

D, E, F, G

Dumped Goods

Dumped goods are goods that:

  • are imported from overseas at less than their normal value;
  • may cause injury to an Australian industry producing similar goods, or hinder the establishment of an Australian industry; and
  • have been classified as being "dumped" by the Australian Anti-Dumping Commission.
Evaluation Criteria

Evaluation criteria are used to assess the merit of offers received. The evaluation criteria are specified in the quotation or tender documentation.

Expression of Interest (EOI)

An Expression of Interest (sometimes called a Registration of Interest) is a process used to shortlist potential suppliers before seeking detailed bids in accordance with the procurement thresholds. An EOI process is generally used when the information required is specific and the agency is unsure of the capability of suppliers to provide the required goods or services.

Free Trade Agreements

Free trade agreements are negotiated agreements between two or more countries to form a free trade area. The free trade area increases trade between the signatories through the removal of tariffs, quotas, "buy local" penalties and other trade barriers.

General Government Sector Body

A general government sector body includes a Government department (as defined in the State Service Act 2000) and any State authority (classified as an entity within the general government sector in the Treasurer's annual report).

Goods and Services

Goods are tangible, transportable supplies. Services are intangible supplies or effort, such as consultancies (other than building and construction related consultancies).

Government Business Enterprise

Government Business Enterprises (GBEs) are entities which operate outside the Public Account, principally on the basis of funds derived through their operations.  GBEs are subject to their own enabling legislation and the Government Business Enterprises Act 1995.

Government Information Technology Contract (GITC)

The Government Information Technology Contract is used for all purchases of computer hardware, software and IT services, except as provided in the Treasurer's Instruction 1123.

H, I, J, K, L

Information Technology Purchase

All purchases of computer hardware, software and IT services, except as provided in the Treasurer's Instruction 1123.

Legal Services

Legal advice, civil litigation services, and commercial and conveyancing legal services.

Local Small and Medium Enterprises/Local SMEs

Australian and New Zealand businesses employing less than 200 people.

M, N, O, P

Major Works

Building Construction / Roads and Bridges projects, including construction and maintenance, which have an estimated total value of $250 000 or more.

Minor Works

Building Construction / Roads and Bridges contracts with a value less than $250 000.

Open Tender

A tender open to all persons/businesses who can meet the requirements of the Request for Tender.

Prequalification

Prequalification is a pre-procurement registration system which classifies particular types of contactors and consultants according to expertise and capability in specific work categories within a specific financial range. Prequalification is only used for Building Construction and Roads and/or Bridges contractors and for Building Construction consultants.

Probity Adviser

A Probity Adviser provides advice on probity issues before and during the process of tendering and contracting to ensure the process is fair and in accordance with government guidelines.

Procurement

The entire process by which all resources are obtained by an entity, including planning, design, standards determination, specification writing, selection of suppliers, financing, contract administration, disposals and other related functions.

Purchasing

Also known as procurement. Purchasing is the acquisition of goods or services.

Q, R, S, T

Quality Assurance

A system of activities whose purpose is to provide assurance that the quality control is being done effectively.

Quotation

The bid submitted in response to a Request for Quotation.

Request for Quotation (RFQ)

A Request for Quotation is a document soliciting offers from businesses capable of providing specified works, goods or services. A request for quotation  can be either a verbal or written and is generally only directed to specific businesses (ie it is not publicly advertised).

Request for Tender (RFT)

A Request for Tender is a document soliciting offers from businesses capable of providing specified works, goods or services. Requests for Tender are generally always in writing and advertised.

Review Committees

Departmental committees established to review the process used for all building and construction/roads and bridges tenders valued $100 000 or more and all goods and services procurements valued at $100 000 or more. Prior to the award of the contract, the Review Committee's role is to ensure that a fair and equitable process has been followed and that the selection procedures outlined in the relevant government procurement guidelines have been adhered to.

Risk

Factors that may adversely affect the successful completion of a project.

Risk Management

The process of identifying risks, analysing their consequences and devising appropriate responses.

Risk Management Plan

A Risk Management Plan details the approach to be taken to manage risk, including:

  • the process to be used to identify, analyse and manage risks;
  • how often risks will be reviewed and by whom; and
  • responsibilities.
Risk Register

The Risk Register records details of risks identified, their grading in terms of seriousness and likelihood, and mitigating actions.

Roads and Bridges procurement

Procurement relating to the construction and maintenance of roads and/or bridges and associated professional services (eg civil engineers).

Specification

A document which clearly, accurately and completely describes the essential requirements of the building and construction procurement, or goods and services being purchased.

State-owned Company

State-owned Companies (SOCs) operate outside the Public Account, principally on the basis of funds derived through their operations and are subject to Corporations Act 2001, Company Constitutions and their respective Portfolio Legislation, eg. Aurora Energy Pty Ltd and TT-Line Company Pty Ltd

Statutory Authority

Statutory authorities are each established under specific legislation which defines the purpose for which they are established and the general functions for which they are responsible.

Tasmanian business

A businesses operating in the State, which has a permanent office or presence in Tasmania and employs Tasmanian workers.

Tender

A proposal, bid or offer that is submitted in response to a Request for Tender.

Tender Box

A tender box is a point of lodgement for tenders to ensure that the documentation is kept secure until the tender period closes.

Generally a tender box:

  • is a box or cabinet with an opening which allows large envelopes to be lodged, but which does not permit access to the contents;
  • should be secured in a fixed position; and
  • should be locked with two locks with different keys, maintained by two different officers.

U, V, W, X, Y, Z

Value for Money

Value for money is one of the principles that agencies are required to meet when purchasing. Essentially, it means achieving the desired outcome at the best possible price.

Value Management

A process undertaken by agencies for building and construction projects, to ensure that all necessary requirements of the project are provided at the lowest total cost, whilst still maintaining the required quality and performance levels.

 

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