Frequently Asked Questions
What does Procurement Services do?
What benefits does Procurement Services provide, and to who?
What is the difference between a tender and a contract?
Why does the University ask for a tender rather than a quote?
At what level does a quote become a tender?
What is the tender process?
How long does the tender process take?
At what point are tenders required?
How do I assess the value of the procurement?
How is a tender assessed?
Who decides who to award a tender to?
If I am unsuccessful, will you explain to me why my bid failed and what can you tell me about the winning bid?
Does the University have a Select List of Approved Suppliers/Contractors?
My company is new and has few references; will I be allowed to compete for University business?
Are customer service issues taken into consideration when choosing a supplier?
What does Procurement Services do?
Procurement Services works with different University departments and bodies to analyse their, plans, requirements and historical spending. We then use this information to make decisions to procure goods and services more effectively and efficiently.
Our goals are to:
- Optimise performance, value and quality
- Minimise bottom line costs through cost takeouts, avoidance and price reductions
- Evaluate total life cycle management costs and total cost of ownership
- Promote competitive, auditable and transparent supply opportunities through the tender process
- Promote the University as 'customer of choice' to the supplier community
- Increase the value of each dollar spent
- Promote sustainable and Corporate Social Responsibility (CSR) practices
What benefits does Procurement Services provide, and to who?
The University spends approximately $300 million annually on non-capital, non-salary goods and services.
The benefits of Procurement Services go beyond price savings to reduce the total cost of ownership:
- Reduction in cost per unit
Pricing improvements
Supply chain savings
Reduced lifecycle costs - Change in consumption volume
Demand management
Specification review - Improved operating efficiency
Reduced procurement and non-procurement related operating expenses
Performance Monitoring - Improved supply chain management
Socioeconomic goals
Optimised supplier relationships
Procurement Services works to find both dollar savings and process improvements that can lead to substantial savings. The University, industry suppliers and ultimately the community benefits when the University can better define its purchasing requirements and provide committed purchase volumes, and in return industry suppliers can provide better pricing and solutions.
Through closer supplier relationships, more efficient processes can be developed.
E-procurement and increased visibility in purchasing can result in standardisation, decreased costs and time, and improved quality.
What is the difference between a tender and a contract?
The term tender means a formal invitation to trade under the terms of offer and the documents associated with that offer. A contract is, generally speaking, a legally binding agreement between parties, where there has been offer, acceptance and consideration.
Why does the University ask for a tender rather than a quote?
Generally, it is the level of value and risk that determines if we ask for a quote or go out to tender.
At what level does a quote become a tender?
Please refer to the Tendering and Purchasing Policy pages.
What is the tender process?
Please refer to the Tendering page.
How long does the tender process take?
From the time the tender is released, it is generally in the market for 25 calendar days. Pre-release preparation, the advertisement period, evaluations, Tender Board endorsement and agreement finalisation generally result in a tender process taking an average of 90 days to complete.
At what point are tenders required?
If the procurement is valued at $200,000 or above, tenders must be called, unless approved otherwise by Procurement Services.
How do I assess the value of the procurement?
The value is based on the probable sum payable to the provider over the term of the contract. If the value is $100,000 per annum for two years, then the value of the contract is estimated at $200,000. If there was an option to extend the Contract for a further year then the value is estimated as $300,000.
How is a tender assessed?
Tender evaluation criteria are agreed before tenders are returned. Possible criteria are price, service, quality of goods, running costs, technical merit, previous experience, delivery date, cost effectiveness, quality, relevant environmental considerations, aesthetic and functional characteristics, safety, after-sales services, technical assistance and any other relevant matters.
Who decides who to award a tender to?
The evaluation team, led by the Procurement Services, must produce a written report upon completion of a tender evaluation and this report must be then endorsed by the University Tender Board before the outcome can be announced.
If I am unsuccessful, will you explain to me why my bid failed and what can you tell me about the winning bid?
Yes and this could include a number of reasons. For example, you might be too costly, or have insufficient skills or knowledge, you may have failed to understand what is required or failed to complete the documentation correctly. Whatever the reason, if you ask for feedback we will provide it as far as we are able.
Does the University have a Select List of Approved Suppliers/Contractors?
Yes, please see Preferred suppliers
My company is new and has few references; will I be allowed to compete for University business?
Yes, the University does not discourage new businesses. A view will be taken on your company's suitability and any potential risk to us. Thorough investigations will be made examining your financial status and past performance where possible. You could also be invited to an interview to further examine your suitability.
Are customer service issues taken into consideration when choosing a supplier?
While cost is a major factor in long-term contracts for goods and services, there are many others, including: customer service and support, delivery, selection, and environmental responsibility. The University will specify and weigh all of these factors in the development of the specifications, negotiation, and the final award of the contract.