Tender Process

What are the tender purchasing steps?

Once it has been determined that a purchase is required, and the funding has been approved, the seven main steps in the tender purchasing process are:

Tender process is determined

The dollar value of the purchase, and its business category, determine when a tender process is used.  To review how this decision is made refer to how purchasing works.

Request for Tender is prepared 

The Request for Tender outlines what is required, the contractual requirements and how you should respond.  The Request for Tender is usually comprised of:

• Conditions of Tender which may include:

• an explanation of the evaluation criteria to be used to evaluate tenders;
• information on any relevant government policies;
• closing time, date and place of lodgement;
• the Conditions for Participation (mandatory requirements);
• the point in the purchasing cycle when a debriefing interview will be available; and
• guidance on the formal purchasing complaint process.

• A specification that describes the product, service or works required.  The specification should be clear, accurate and complete.
• Conditions of Contract.
• Tender Response Schedules.

See understanding the tender documentation for further information.

Tenders are invited

The value, complexity and business category determine how tenders are invited.  How purchasing works explains the rules and guidelines for when, where and how tenders are invited.

In some cases you will need to be pre-qualified to be able to respond to the Request to Tender.  See the pre-qualification section to see when this is required and how to register.

Suppliers respond

You should first obtain all relevant documentation.  Then:

1. attend any pre tender briefing sessions being conducted;
2. clarify any uncertainties;
3. plan your response;
4. prepare your response; and
5. submit your response in the right format, on time and at the right location.

To find out more see Planning your Tender Response.

Evaluation and selection

Tenders are usually evaluated by a tender evaluation committee.   Each tender will be checked for compliance with any Conditions for Participation and if compliant, then evaluated against the criteria specified in the tender documentation.  The tender that offers best value for money will win the business.  Remember, value for money does not necessarily mean the lowest price.  For more information, refer to How Tenders are Evaluated.

Notification and debriefing

When a contract has been awarded, the successful tenderer will be advised in writing of the outcome.  Unsuccessful tenderers are also advised and offered a debriefing interview.

Contracts established and managed

Generally, a formal agreement will be required between the successful tenderer and the relevant government agency.  The contract comprises all information provided to and by the successful tenderer.  These include:

• Conditions of Tender;
• specifications, including any plans and other attachments;
• the tender response; and
• Standard Conditions of Contract.

For more information see establishing a contract.

The contract will outline the responsibilities of the contractor and the government agency.  For further information on what these responsibilities include, see managing the contract.  Payment will be made at the completion of the contract or as outlined in the payment schedule.

Want to know more about tenders?  See How to Tender.