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Procurement Alert

RK Procurement Dictionary

New to procurement? Keep our Procurement Dictionary handy until you get the hang of things.


An amendment to an ATM that is issued to all tenderers. The plural is ‘addenda’.


Approach to Market. This is a general term for any document you issue to potential   suppliers seeking goods or services, including an RFT, EOI etc.


The online system that manages all Australian government procurement activities. Austender advertises opportunities, allows potential tenderers to download the ATM   documents and is also where tenderers usually submit their tenders.


Sometimes used interchangeably with Conformance. Traditionally, this refers to the   extent to which the tender meets the requirements of the RFT.

Compliance   Statement

A blank table in the ATM in which tenderers will be asked to nominate whether or not they agree to the contractual terms proposed by the agency and (in the case of non-compliance) what changes they would seek to negotiate if successful. Compliance Statements are typically reviewed by the agency’s legal adviser as part of a Legal Risk Assessment.


Sometimes used interchangeably with Compliance. Generally, the term refers to whether a tender meets the Minimum Form and Content Requirements and Conditions for   Participation. Tenders not meeting all of these requirements will usually be excluded from further evaluation.


Conditions of Tender. This is the section of the ATM with the rules about how the tender   process will be run and what rights or discretions the agency has. Also referred to as Tender Conditions.

Covered   Procurement*

A procurement valued at more than $80,000 (or $7.5M for construction services) to which the strict rules in Division 2 of the CPRs apply.


Commonwealth Procurement Guidelines, the predecessor to the CPRs. If you see this term, the document you are reading is out of date.


Commonwealth Procurement Rules issued by the Department of Finance. These provide   principles and rules governing the conduct of all Commonwealth procurement activities.


The feedback given to each tenderer about the why their tender was or was not   successful. Can be written, face-to-face or by telephone.


The person with authority to approve the procurement outcome or sign the resulting contract with the successful supplier. May also be referred to as the Decision Maker or the Spending Approver.

Division   2*

Part 2 of the CPRs, which contains the rules that are mandatory for the conduct of all Covered Procurements.


Deed of Standing Offer. A type of contract that allows you to order goods or services at any time, typically used when establishing a panel of providers.


Expression of Interest. An agency may seek Expressions of Interest from interested   suppliers in the first instance, then issue an RFT or RFP to those suppliers that look most suitable.


The supplier currently providing the goods or services that are now being re-tendered. Often seen as having an advantage over other tenderers.


Invitation to Register. Essentially the same as an EOI, this terminology is often used in the Defence and construction industries.

Legal   Risk Assessment

The review of each tenderer’s Compliance Statement conducted by the agency’s   legal adviser. Typically, it will include commentary on which proposed departures from the draft contract are acceptable, and which are high risk or unacceptable from a legal perspective. The Legal Risk Assessment can form part of your overall Value for Money evaluation.

Limited   Tender

Formerly known as Direct Sourcing, this refers to any direct approach to a single   supplier or small number of suppliers. The CPRs limit the circumstances in which this is permitted.


Multi-use List. This is a list of prequalified suppliers that can be approached to do work. The most well known is the Legal Services Multi-Use List.


Discussions with the Preferred Tenderer to agree on contract terms and conditions and   improvements to price prior to entering into a contract. If a tender is wholly compliant and good value for money these may not be required.


Using a contracted supplier or panel or providers established by another entity.

Preferred   Tenderer

The tenderer that has been found to offer best VFM, but which has not yet signed a contract.


The extent to which a procurement activity is conducted in a transparent, fair and impartial manner. Sometimes facilitated by an external probity adviser.


Request for Proposal. Similar to an RFT, but usually implies that the agency is seeking more creative input from tenderers about how best to meet a requirement.


Request for Quote. This is like a mini-ATM issued to members of an existing pool of   suppliers (eg a panel). It typically requires only a brief response such as the names of personnel who would perform the work, proposed delivery date and a price. 


Request for Tender, the most common type of ATM. As the name suggests, a Request for Tender is an invitation to potential suppliers to provide you with a tender to supply the goods or services you are seeking.


Statement of Requirements, the section of an ATM that sets out in detail what the agency requires. May form part of the resultant contract. Also known as a Statement of Work or Tasking Statement.

Tender   Administrator

Also called the Contact Officer. This is the person who will be listed in the ATM as the sole point of contact for tenderer questions or media enquiries.


Tender Evaluation Plan. This is an internal document that details who will evaluation tenders and what processes and criteria they will use. Should align with information in the ATM, but likely to contain more detail. May form part of a detailed Procurement Plan rather than being a stand-alone document.


Value for Money, the primary concept underpinning government procurement. To determine Value for Money, you must consider price, quality and risk.

Weighted criteria

Scored evaluation criteria that are not of equal importance. Applying a weighting (usually expressed as a percentage of the total score) allows agencies to ensure that the most   important criteria are the ones that most influence each tenderer’s total score.