How Purchasing Works

What are the objectives of government purchasing?

Tasmanian Government purchasing is conducted by encouraging fair and open competition between suppliers, with the objective of achieving best value for money. Government buyers must behave ethically and comply with a code of conduct. They must also enhance opportunities for local businesses to bid for government business.

For specific information on the purchasing principles and policies that government buyers must follow, see Purchasing Principles and Purchasing Policies.

Purchasing processes.

Government purchases are generally classified as being "Goods and Services", "Building Construction" or "Roads and Bridges".

The purchasing process used depends on what goods or services required and the value of the purchase. The purchasing processes used for different types and values of purchases are described in the following tables.

Goods and Services

When the purchase value is...*

Process used...

The purchasing process is managed by...

And these mandatory requirements also apply...

$50 000 or less

At the discretion of agencies

Individual agencies

Compliance with the procurement principles.

More than $50 000 but less than $250 000

Written Quotation

Individual agencies

A minimum of three (3) written quotes must be sought.

At least two (2) quotes must be sought from local businesses, where local capability exists.

$250 000 and over

Open Tender

Individual agencies

The Request for Tender must be advertised on the Tenders website.

At least two (2) tenders must be sought from local businesses, where local capability exists.

* The dollar value thresholds for purchasing goods and services exclude GST.

Building Construction (works)

When the purchase value is...*

Process used...

The purchasing process is managed by...

And these mandatory requirements also apply...

$50 000 or less

At the discretion of agencies

Individual agencies

Compliance with the procurement principles.

More than $50 000 but less than $250 000 (minor works)

Written Quotations

Individual agencies

A minimum of three (3) written quotes must be sought.

At least two (2) quotes must be sought from local businesses, where local capability exists.

$250 000 and over (major works)

Open Tender

Individual agencies

The Request for Tender must be advertised on the Tenders website.

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

At least two (2) tenders must be sought from local businesses, where local capability exists.

* The dollar value thresholds for building construction projects exclude GST.

Building Construction (consultancies)

Where appropriate categories exist, only contractors prequalified with the Department of Treasury and Finance are able to be appointed.  Information on prequalification is available from Prequalification

Where prequalification is required, a selective tender process is generally used whereby one or more prequalified consultants are approached to submit a brief. Where there are no applicable prequalification categories the following processes apply:

When the purchase value is...*

Process used...

The purchasing process is managed by...

$10 000 or less

Seek at least one quotation

Individual agencies

More than $10 000 but less than $100 000

Seek at least three quotations

Individual agencies

$100 000 and over

Open Tender

Individual agencies

* The dollar value thresholds for building construction projects exclude GST.

Roads and Bridges (works and consultancies)

When the purchase value is...*

Process used...

The purchasing process is managed by...

And these mandatory requirements also apply...

$50 000 or less

At the discretion of agencies

Individual agencies but mainly Department of State Growth

Compliance with the procurement principles.

More than $50 000 but less than $250 000 (minor works)

Written quotations

Individual agencies but mainly Department of State Growth

A minimum of three (3) written quotes must be sought.

At least two (2) quotes must be sought from local businesses, where local capability exists.

$250 000 and over (major works)

Open Tender

Individual agencies but mainly Department of State Growth

Public tenders are advertised on the Tenders website.

For works, the Department of State Growth operates a prequalification system and where appropriate categories exist, only those contractors prequalified are able to be appointed.

At least two (2) tenders must be sought from local businesses, where local capability exists.

* The dollar value thresholds for roads and bridges projects exclude GST.

Want to know more about the steps in the process? See Purchasing Process - Purchasing Steps.

Who purchases for the Government?

Purchasing is generally done by each government agency rather than by a central authority although for some goods and services contacts, a whole-of-government approach applies.

For more information see Who are the Buyers.

 

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