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Purchasing G&S $100 000 and over

Planning the Purchase

Goods and Services

Purchasing G&S $100 000 and over

	Purchasing Process - Overview
	Planning the Purchase
	Alternative Buying Opportunities
	Inviting Tenders
	Receiving Tenders
	Evaluating Tenders
	Finalising a Contract
	Unsuccessful Tenderers
	Review Committee
	Preparing Documentation

Related Information

	FAQs
	Forms
	Checklists

Planning the Purchase

Before you begin

What do you need to consider when planning the purchase?

Relevant Treasurer's Instructions

Treasurer's Instructions 1100 series and 1401

Before you begin

Prior to commencing any planning, can you answer yes to the following?

Are you aware of and do you understand:

your responsibilities and accountabilities, including Ethical Standards, Codes and Record Keeping;
the purchasing principles;
relevant purchasing policies; and
the Crown Contracts Confidentiality Policy?

Is the purchase justified?

Was consideration given to other ways of achieving the desired outcome or acquiring the required outputs?
Was the decision to purchase made following the development of a Business Case (used for complex, high risk, high value purchases) and do you need to do a cost / benefit analysis?
Does the requirement align with agency objectives / desired outcomes?

Do you have the authority to purchase?

Have you estimated the value of the procurement in line with the requirements of the Treasurer's Instruction 1104 and is funding available?

If appointing a consultant or contractor, has Secretary or Deputy Secretary approval been obtained as required by the Treasurer's Instruction 1113?

Have you considered alternative buying opportunities or the availability of whole of government or whole of agency contracts?

Do you need to consider an Industry Participation Plan?

What do you need to consider when planning the purchase?

Undertaking planning prior to preparing tender documentation is the foundation of a good specification, selection and contracting process. Prior to undertaking a high value, complex, high risk, unique or strategic purchase, you should develop a formal procurement plan.

You may wish to adopt a full project management approach. If so, guidelines and documentation are available to assist you at http://www.projectmanagement.tas.gov.au/.

The following checklists are available to assist in planning and conducting the procurement:

Tender process checklist; and

Tender process checklist - Free Trade Agreements.

Regardless of the complexity / value of your purchase, all purchases require some degree of planning, and the list below will assist you to plan your purchase.

Market Research	It is important to have an understanding of the market. For all procurements valued at $100 000 or more, this must include consulting with the Industry Capability Network (ICN), who will assist you in identifying local capability. Refer also to the publication Buy Locally - A Guide for Tasmanian Government Agencies.
Defining the specification	The specification is the description of your Agency's requirements. This should encompass all the functional, performance and technical requirements of the goods and or services being procured. If the specification is not appropriate then the end result may not meet your needs
Purchasing method	What purchasing method will you need to undertake? The purchasing method you must follow will depend on: whether there is an existing contract; market characteristics - eg how many suppliers, identifying how competitive the market is etc; the value of the proposed purchase, including ongoing costs such as maintenance agreements (for more information see purchasing thresholds); and how well defined the requirement is and the complexity of the project (in such cases it may be appropriate to undertake a multi-stage purchasing process). Is it appropriate to: seek approval for direct/limited submission sourcing under Treasurer's Instruction 1114 (refer to Direct/limited submission sourcing for further information); purchase from a disability enterprise (refer to Purchasing from Businesses that Employ Persons with Disabilities for further information); or use a common-use contract
Evaluation	Who will be on the evaluation committee? What evaluation criteria, including weightings (if relevant) and evaluation methodology will be used? Should an evaluation plan be developed?
Risks	Is it necessary to undertake a risk management assessment and develop a risk management plan? Do you need to employ a probity adviser? A probity adviser is recommended when a purchase is complex, of high value or is likely to be contentious.
Potential Impacts	What are the potential impacts on local suppliers? What are the community, industry and economic impacts? How should they be addressed? Have you considered the impact of specific procurement policies such as those relating to climate change and environmental impacts?
Procurement documentation	What procurement documentation is required? Template documentation has been prepared by the Crown Solicitor for use by agencies. Refer to Resources.
Contract documentation and contract management	What contract documentation is appropriate? Note: if Crown Solicitor template documentation has been used (refer Resources), the form of contract is set out in that documentation. Is approval to include a confidentiality provision required? (Refer to Crown Contracts Confidentiality Policy) Who will manage the contract? Do you need a formal contract management plan?

This page has been developed by the Department of Treasury and Finance.

Questions regarding its content may be directed by email to purchasing@treasury.tas.gov.au

The URL for this site is http://www.purchasing.tas.gov.au/buyingforgovernment
� Government of Tasmania 2001.
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