Run the tender process

Give suppliers reasonable time to respond

You should always make sure the tender period gives prospective suppliers reasonable time to effectively prepare their submissions or bids and price the work.

After all, the more prepared they are, the more likely you’ll find the right supplier and achieve a successful procurement outcome.

Wherever possible, you should allow potential suppliers to respond to the tender electronically.

Beyond this, different rules apply to how long you must keep a tender open. These depend on the value, complexity and urgency of the work, as well as how you publish the tender.

Tender periods for covered procurements

If your procurement is for:

• goods and services valued over $680,000 (excluding GST)
• a construction contract valued over $9,584,000 (excluding GST)

it may be covered by Australia’s international trade agreements and subject to the requirements in board direction, PBD-2019-05 Enforceable Procurement Provisions.

Read more about Enforceable Procurement Provisions.

The following minimum tender periods apply for covered procurements. However, you must make sure you give suppliers enough time to prepare and lodge their submissions, taking into account your reasonable needs.

No set period:

• Where you have a genuine and urgent need for the procurement. Examples include responding to a critical issue or an emergency.

10 calendar days:

• Where you’re procuring commercial goods or services non-government businesses can routinely buy.
• Where you’ve approached the market within the last 12 months for substantially similar goods or services and stated at the time you’d make another approach.
• Where you’ve included a notice of the procurement in an annual procurement plan and published it on etendering at least 40 days and not more than 12 months before you publish the tender.

25 calendar days:

• All other tenders.

Tender periods for non-covered procurements

You can decide on the most suitable tender period, taking into account your reasonable needs and the suppliers’ ability to prepare and price their submissions. However, we recommend the following minimum tender periods for non-covered procurements.

No set period:

• Where you have a genuine and urgent need for the procurement. Examples include responding to a critical issue or an emergency.

10 calendar days:

• Where you include the tender on etendering as part of your annual procurement plan.
• Where you’re buying the goods or services through a panel contract, standing offer or NSW Government prequalification scheme.
• Where you’re approaching the market as part of your recurring procurement arrangements.

25 calendar days:

• In any situation where you publish the tender on etendering.

30 calendar days:

• In any situation where you don’t publish the tender on etendering.

Tender periods for construction procurements over $100 million

When you’re procuring construction or infrastructure contracts worth more than $100 million, you should consider Infrastructure Australia’s recommended tender periods.

These are especially important where the procurement involves a design and construct, public/private partnership (PPP) or alliance-type delivery model.

A longer tender period may also be appropriate for any high-value and complex procurements under $100 million. This might include, for instance, construction works with significant design elements.

Your procurement may also be covered by Australia’s international trade agreements and subject to board direction, PBD-2019-05 Enforceable Procurement Provisions.

Read more about Enforceable Procurement Provisions.

Visit Infrastructure Australia to find out more.

Number of quotes or tenders

You must always look to achieve value for money, especially in high value and prescriptive contracts. One way you can do this is to make sure you receive enough quotes or tenders to create competitive tension.

You should also attempt to make sure you encourage small to medium enterprises (SMEs) to participate. Where appropriate, this should mean inviting at least one SME to tender or quote.

When you’re sourcing from a scheme, you should follow the scheme guidelines for buyers.

You are also allowed to procure using a lower number of quotes for some types of procurements. These include some low-value contracts, contracts with small businesses and procurements involving an Aboriginal-owned enterprise.

Assistance with costs

Generally, the supplier must bear their own costs of responding to an approach to market.

In special circumstances, you may offer assistance with the cost of tendering. If you do, you must include details in the approach to market documents.

Special circumstances should be limited to high-cost procurements and extenuating circumstances. Your agency head must approve any reimbursement before you can pay a supplier.

Construction projects over $100 million

The NSW Government will consider contributing up to 50% of an unsuccessful bidders estimated costs, where:

• you can demonstrate a bid cost contribution provides value for money
• the bidder submitted an appropriate bid but wasn’t awarded the contract, and
• the bidder agrees the NSW Government owns any intellectual property contained in the bid, where reasonable.

We make contributions based on your assessment of the bidder’s costs, not theirs. We won’t consider any bid cost contributions on projects with an estimated total capital cost of $100 million or less.

If you’re considering bid cost contributions as part of a tender, you should always first seek NSW Treasury’s consent before you release any expression of interest (EOI). NSW Treasury will provide this, so long as you meet the conditions of the Bid Costs Contribution Policy.

You should also include the proposed contribution in the total project funding envelope that you present to the ERC or Cabinet for approval before you begin the procurement process.

Using external advisers

Where you engage an expert adviser to help prepare request for tender (RFT) documents, you must exclude them from also tendering for the work.