Open Tender
Definition: A procurement method where the opportunity is publicly advertised and any interested supplier can submit a response, ensuring maximum competition and transparency.
What is an Open Tender?
An Open Tender is a procurement approach where a government agency publicly advertises a tender opportunity, and any supplier that meets the eligibility requirements can submit a response. It is the default procurement method under the Commonwealth Procurement Rules (CPRs) for procurements above the relevant financial threshold.
How Does an Open Tender Work?
- The agency publishes a notice on a procurement portal such as AusTender, QTenders, or Buying for Victoria
- Any interested supplier downloads the tender documents and prepares a response
- Responses are submitted by the closing deadline
- An evaluation panel assesses all compliant responses against the published Evaluation Criteria
- The contract is awarded to the supplier offering the best Value for Money
When is an Open Tender Required?
Under the CPRs, Commonwealth agencies must use an open tender (or open approach to market) for procurements valued at or above:
- $80,000 (GST inclusive) for general procurements
- $7.5 million for construction services
State and territory governments have their own thresholds, but the principle of open competition is consistent across all Australian jurisdictions.
Open Tender vs Other Methods
- Select Tender — only invited suppliers can respond
- Limited Tender — direct approach to one or a few suppliers without public advertising
Open tenders provide the highest level of competition and transparency, which is why they are the preferred method for significant procurements.
Tips for Tenderers
- Monitor portals regularly — open tenders are publicly visible, so set up alerts to catch them early.
- Start preparing as soon as the notice appears — response periods can be as short as 25 days for Commonwealth tenders.
- Read the entire document package — open tenders tend to have comprehensive requirements that must all be addressed.
Related Terms
AusTender
The Australian Government's central procurement information system, managed by the Department of Finance, where Commonwealth agencies publish tender opportunities, contract awards, and other procurement notices.
Buying for Victoria
The Victorian Government's central procurement portal where state government departments and agencies publish tender opportunities, contract awards, and supplier registration information.
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.
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.
Probity
The ethical standards, fairness, and transparency requirements that government agencies must uphold throughout the procurement process to ensure all suppliers are treated equally and decisions are defensible.
QTenders
The Queensland Government's official online procurement portal where state departments and agencies publish tender opportunities, manage supplier engagement, and report contract awards.
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.
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.
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