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Purchasing Overview

How Purchasing Works

How Government Buys

Purchasing Overview

	Purchasing Principles
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	How Purchasing Works

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How Purchasing Works

What are the objectives of government purchasing?

Which government agencies do these purchasing policies and procedures apply to?

Who purchases for the Government?

Purchasing requests are determined by the type of purchase and the dollar value

Selling to the Government can appear complex but with the correct planning and insight you can develop business opportunities with Tasmanian Government agencies.

If you want to develop a supplier relationship with the Government this is a good place to start.

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

Which government agencies do these purchasing policies and procedures apply to?

These purchasing policies and procedures apply to inner-budget agencies. They do not apply to other government groups such as State-owned companies and government business enterprises.

See who are the buyers for further information on the government agencies that are required to follow these guidelines.

Who purchases for the Government?

Purchasing is generally done by each government agency rather than by a central authority.

For more information see who are the buyers.

Purchasing requests are determined by the type of purchase and the dollar value

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

The purchasing process used depends on what sort of purchasing is being done, and the value of the purchase.

The purchasing process used for different types and values of purchases are described in the following table. For more information see quotation process or tender process.

Goods and Services

When the purchase value is...*	This purchasing process is used...	The purchasing process is managed by...	And these mandatory requirements also apply...
$10 000 or less	Quotation	Individual agencies	Quotation processes are at the discretion of agencies.
More than $10 000 but less than $100 000	Written Quotation	Individual agencies	A minimum of three (3) written quotes must be sought. At least one (1) quote must be from a local business. The Industry Capability Network Tasmania (ICNTAS) may be consulted if a suitable local business cannot be located.
$100 000 and over	Public Tender	Individual agencies	The Request for Tender must be advertised in the Saturday edition of at least one (1) of the daily Tasmanian papers and on the Tenders website at www.tenders.tas.gov.au. At least one (1) tender must be sought from a local business. The ICNTAS must be consulted to identify local capability.

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

Building and Construction

When the purchase value is...*	This purchasing process is used...	The purchasing process is managed by...	And these mandatory requirements also apply...
$10 000 or less**	Verbal Quotations	Individual agencies	Quotation processes are at the discretion of agencies.
More than $10 000 but less than $100 000**	Written Quotations	Individual agencies	A minimum of three (3) written quotes must be sought.
$100 000 and over	Public Tender / Expression of Interest	Individual agencies	The Request fro Tender must be advertised in the Saturday edition of one (1) of the daily Tasmanian papers and on the Tenders website at www.tenders.tas.gov.au. Only contractors pre-qualified with the Department of Treasury and Finance are eligible to tender.

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

** Building and construction projects with a capital value of less than $100 000 are classified as a minor works.

Roads and Bridges

When the purchase value is...*	This purchasing process is used...	The purchasing process is managed by...	And these mandatory requirements also apply...
$10 000 or less**	Quotations	Department of Infrastructure, Energy and Resources (DIER)	Quotation processes are at the discretion of agencies.
More than $10 000 but less than $250 000**	Written quotations	Department of Infrastructure, Energy and Resources (DIER)	A minimum of three (3) written quotes must be sought.
$250 000 and over	Public Tender	Department of Infrastructure, Energy and Resources (DIER)	Public tenders are advertised in the Saturday edition of all three (3) daily Tasmanian papers and on the Tenders website at www.tenders.tas.gov.au. Only contractors pre-qualified with the Department of Infrastructure, Energy and Resources are eligible to tender.

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

** Roads and bridges projects with a capital value of less than $250 000 are classified as a minor works.

A selective tender process is used for all road and/or bridge consultancies.

Want to know more?

Review Purchasing Principles or Purchasing Policies.

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

Questions regarding its content or presentation may be directed to the purchasing@treasury.tas.gov.au or by post to
Procurement and Property Branch, Department of Treasury and Finance, GPO Box 147, Hobart, Tasmania 7001, Australia.
Telephone: 61-3-6233 3885, Facsimile 61-3-6233 3681

The URL for this site is http://147.109.254.182/winninggovernmentbusiness
� Government of Tasmania 2001.
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