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Purchasing Principles

What principles must government buyers follow when purchasing?Back to Top

Government purchasing is based on the four principles of:

What does value for money mean?Back to Top

Value for money means getting the desired outcome at the best possible price. This does not necessarily mean choosing the cheapest price.

When assessing value for money the buyer will weigh up the benefits of the purchase against the cost of the purchase. Factors that the buyer may consider when assessing value for money may include:

Value for Money picture

What does open and effective competition mean?Back to Top

Government buyers must ensure that the purchasing process is impartial, open and that competitive offers are encouraged.

Open and effective competition is achieved through:

Open Competition picture

What does conducting purchasing activities ethically and in accordance with a code of conduct mean?Back to Top

Government buyers must ensure that all purchasing is undertaken in a fair and unbiased way and in the best interests of the State.

As a supplier, you can be assured that:

  • You are provided with the same information as other suppliers upon which to base your tender or quotation. Did you know that if you ask a question that results in additional information being provided to you, your question and the answer will be circulated to all other potential suppliers?
  • You are provided with the same amount of time as other suppliers in which to prepare your tender or quotation.
  • Fair and equal consideration is given to all tenders and quotations.
  • Your dealings with the Government are kept confidential.

From a buyer's perspective:

  • Decisions must be made in the best interests of the State and must not be influenced by self-interest or personal gain.

Government buyers cannot accept gifts or any other benefits from suppliers.

  • Conflicts of interest are to be identified and dealt with.
  • Purchasing must be undertaken in accordance with government policies.

What does enhancing opportunities for local business mean?Back to Top

Government buyers must ensure that all local businesses, such as yours, that wish to do business with the Government are given the opportunity to do so.

Bids must be actively sought from local businesses, particularly from those businesses that have previously requested the opportunity to bid. Government buyers must contact the Industry Capability Network Tasmania (ICNTAS), to check its register of local capability, for purchases of goods and services valued at $100 000 or more. Follow the link to find out how to get known to government buyers.

It is important to note that enhancing opportunities for local business is not the same as giving preference to local business. Under various international free trade and cooperative agreements which bind Australia, government buyers cannot discriminate against suppliers from other states, territories, New Zealand, the United States or Chile. Why? So that government buyers in other states, territories, New Zealand, the United States and Chile do not discriminate against Tasmanian suppliers.

Want to know more on How Purchasing Works, Government Policies or the Purchasing Steps?

 


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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
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