Purchasing Policies

What purchasing policies apply to government buyers?

What purchasing policies apply to government buyers?

1.      Free Trade Agreement and Cooperative Agreement participation

The Tasmanian Government, together with the Australian Government and all other State and Territory Governments, are bound by a number of free trade and cooperative arrangements. As of 6 March 2009, those arrangements which include specific Government procurement commitments include:

• The Australia and New Zealand Government Procurement Agreement (ANZGPA);
• The Australia - United States Free Trade Agreement (AUSFTA); and
• The Australia - Chile Free Trade Agreement (ACFTA).

These Agreements ensure that Australian, New Zealand, United States and Chilean suppliers are given equal consideration. Under these Agreements, government buyers cannot give preference to local suppliers and discriminate against suppliers from other states, territories, New Zealand, the United States or Chile.

2.      Dumped Goods

The Government has banned government agencies from purchasing "dumped goods", or goods that are suspected of being "dumped", in order to protect local industry and ensure that local businesses do not have to compete unfairly against overseas competitors. Click here to find out more on dumped goods.

3.      Environmental and Climate Change Policies

The Government is committed to protecting the environment by avoiding products that are harmful to the environment and by avoiding waste. Where possible, preference is given to environmentally sound products. Review the environmental purchasing guidelines.

4.      Procuring from Government Entities

Agencies can only accept offers from other government entities, including Government Business Enterprises and State-owned Companies, where the price has been calculated on a full cost attribution basis, unless there are no private sector suppliers. Full cost attribution ensures government entities recognise all of the costs which would normally be borne by the private sector-that is, direct costs plus overheads, taxes, fees and charges. If full cost attribution cannot be confirmed, then the offer must be declined.

5.      Procuring from Businesses that Employ People with Disabilities

The Tasmanian Government is aware of the valuable role played by businesses that provide employment to persons with disabilities.

Government policy allows agencies, at their discretion, the flexibility of streamlining the procurement process when purchasing from businesses that predominantly exist to provide the services of persons with a disability, provided that the process undertaken is consistent with the intent of Government policy and the procurement principles of:

• value for money;
• open and effective competition;
• compliance with ethical standards, and observing the Procurement Code of Conduct; and
• enhancing opportunities for local business.

If you are an approved Australian Disability Enterprise (or for businesses outside of Australia's jurisdictions have a predominant proportion of employees with a disability or your predominant purpose is the provision of employment to persons with a disability), it is important to make sure that relevant government buyers are aware ofyour business.

The new Australian Disability Enterprises website is a key marketing tool that all Australian Disability Enterprises can utilise to promote their products and services.

For a list of agencies that use your products or services and further tips on how to market your business to enhance your ability to win Government purchasing opportunities, refer to Getting Known.

Information on the Government's policy is contained in the Treasurer's Instructions 1127 and 1231

6.      Complaints Process

A purchasing complaints process has been established to provide you with a formal outlet for making complaints. Agencies are requiredto inform you of this process in all quotation and tender documentation. To find out more about the complaints process click here.

7.      Debriefing Process

If you are unsuccessful in securing a contract you are entitled to a debriefing interview. Click here to find out why debriefing is important.

8.      Australian Business Number (ABN)

Government agencies will deal with suppliers whether or not they have an Australian Business Number (ABN). However, in accordance with Australian Taxation Office rules, agencies will need to withhold tax at a rate of 48.5 per cent under the Pay-As-You-Go (PAYG) withholding arrangements, unless the payment is exempt.

9.      Public Private Partnerships

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.

The National PPP Guidelines are available on Infrastructure Australia's website at www.infrastructureaustralia.gov.au. 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. The Guidelines effectively replace previously existing policy and guidelines.

10.Australian Code of Tendering

The Australian Standard Code of Tendering AS 4120-1994 is applied for all major works tenders for government building construction works. The standard sets outs the ethics and the obligations of the agency and tenderers in the construction industry. For more information on the code see the SAI global website at www.saiglobal.com.

The Australian Standard General conditions for the engagement of consultants AS4122-1995 is used for consultants.

11.Performance Reporting

On the completion of each Building Construction and Roads and/or Bridges major works contract, the performance of the contractor or consultant is assessed and rated and the results recorded. These performance reports are accessible by all government agencies for evaluating future contracting or consulting submissions.

12.National Code of Practice for the Construction Industry

The Tasmanian Government is committed to the implementation of the National Code of Practice for the Construction Industry, and the Tasmanian Annexure to the Code. Compliance is a condition of tender for all Tasmanian Government construction projects.

Lodgement of a registration application constitutes your agreement to comply with the Code. If as a contractor, subcontractor, consultant or supplier you fail to comply you may be given:

• A formal warning;
• Partial exclusion from tendering opportunities; or
• Preclusion from tendering for any work for a specified period.

The final sanction imposed will depend on the severity of the non-compliance. The sanctions can apply to a single government agency or on a government wide basis for more severe breaches.

To view details on the Code please click here.

13.Building and Construction Training Policy

Information on the Building and Construction Training Policy is available on the Skills Tasmania website.

14.Crown Contracts Confidentiality Policy

The Tasmanian Government is committed to ensuring that government contracting is conducted in an open and transparent manner and that unnecessary confidentiality provisions do not fetter scrutiny of contracts. The Government's policy in relation to confidentiality provides that in any contract between the Crown and another party, confidentiality requirements in relation to the provisions of the contract are not to be included unless an exemption has been approved as being in the public interest. An agency negotiating with a supplier may apply to the Crown Contracts Confidentiality Standing Committee for an exemption. Further information is available from the Treasury Publication, Crown Contracts Confidentiality Policy, located on the Treasury Website at www.treasury.tas.gov.au>Publications and from the Frequently Asked Questions on this matter.

Want to know more?  Go to the publications page or review how purchasing works or the purchasing principles.