Procurement Process

Aboriginal and Torres Strait Islander Procurement Policy IPP

An Australian Government policy that sets mandatory targets for Commonwealth agencies to contract with Indigenous businesses, supporting economic development in Aboriginal and Torres Strait Islander communities.

Best and Final Offer BAFO

A stage in a multi-phase procurement process where shortlisted tenderers are invited to submit their most competitive revised offer, typically after clarification discussions with the procuring agency.

Commonwealth Procurement Rules CPRs

The mandatory rules governing how Australian Commonwealth Government entities must conduct procurement, establishing principles of value for money, competition, transparency, and accountability.

Due Diligence

The process of investigating and verifying a tenderer's claims, financial standing, capability, and suitability before awarding a government contract, conducted by the procuring agency.

Evaluation Criteria

The specific factors, weightings, and standards that a government agency uses to assess and compare tender responses in order to determine which supplier offers the best value for money.

Limited Tender

A procurement method where a government agency approaches one or a small number of suppliers directly, without public advertising or broader competition, permitted only in specific defined circumstances.

Multi-Stage Procurement

A procurement approach conducted in two or more sequential phases, typically starting with a broad market engagement like an EOI before narrowing down to a formal tender among shortlisted suppliers.

Non-Conforming Tender

A tender submission that fails to meet one or more mandatory requirements specified in the tender documentation, which may result in the bid being excluded from evaluation.

Open Tender

A procurement method where the opportunity is publicly advertised and any interested supplier can submit a response, ensuring maximum competition and transparency.

Prequalification

A process where suppliers are assessed and approved against defined standards before being eligible to tender for specific categories of government work.

Select Tender

A procurement method where the government agency selects and invites a limited number of suppliers to submit responses, rather than advertising the opportunity publicly.

Supplier Panels

Pre-approved lists of suppliers that have been assessed as capable of delivering specific categories of goods or services, from which government agencies can directly engage suppliers without running a new open tender.

Tender Box / eTendering

The physical or electronic system through which tender submissions are formally lodged, with eTendering portals now being the standard method for Australian government procurement.

UNSPSC Codes UNSPSC

The United Nations Standard Products and Services Code, a hierarchical classification system used by Australian government agencies to categorise goods and services in procurement, enabling suppliers to find relevant opportunities.

Value for Money VFM

The core principle of Australian government procurement requiring agencies to consider the overall benefits of a purchase relative to its total cost, not just the lowest price.

Weighted Criteria Assessment

An evaluation methodology used in government procurement where each assessment criterion is assigned a percentage weighting reflecting its relative importance, and tender responses are scored against each weighted criterion to determine the best overall submission.

Whole of Government WoG

A coordinated procurement approach where a central agency establishes contracts or arrangements that multiple government departments and agencies can access, achieving volume discounts and administrative efficiency.