Black letter (or bold) items within these Instructions are mandatory and other plain font items are instructional or for the purpose of providing guidance only.
(1) This Instruction applies to the procurement of goods and services and is to be read in conjunction with other Instructions relating to goods and services which are contained in the 1100 series of the Treasurer’s Instructions.
Further information on goods and services procurement, including a definition of “goods and services”, can be located at www.purchasing.tas.gov.au > Buying for Government.
For information on building and construction and roads and bridges procurement, refer to the 1200 series of the Treasurer’s Instructions.
(2) Government procurement must be undertaken in a manner that is consistent with the following four principles:
VALUE FOR MONEY
(a) Agencies must pursue value for money purchasing outcomes in accordance with the guidance information contained in the publication How to Assess Value for Money.
Value for money means achieving the desired outcome at the best possible price. In practice this means weighing up the benefits of the purchase against the cost of the purchase. Value for money factors need to be specifically included in evaluation criteria and may include:
The publication How to Assess Value for Money can be located at www.purchasing.tas.gov.au > Buying for Government > Resources > Publications.
OPEN AND EFFECTIVE COMPETITION
(b) Agencies must ensure that the purchasing process is impartial, open and encourages competitive offers.
Open and effective competition means using transparent, open purchasing processes, adequately testing the market (whether by open tender or by seeking quotations, whichever process is applicable), avoiding biased specifications and treating all suppliers consistently and equitably, so that potential contractors and the public can have confidence in the outcomes.
COMPLIANCE WITH ETHICAL STANDARDS, AND OBSERVING THE PROCUREMENT CODE OF CONDUCT
(c) Government buyers must observe the Procurement Ethical Standards detailed below and abide by the Procurement Code of Conduct also detailed below.
Procurement Ethical Standards
(ii) Public money must be spent efficiently and effectively and in accordance with Government policies;
"public money" means money, negotiable instruments or securities of any kind for the payment of money collected, received or held by a person for or on behalf of the Crown in right of the State and includes all money forming part of, or payable to, the Public Account. (Financial Management and Audit Act 1990)
(iv) Agencies must maintain confidentiality in all dealings; and
(v) Government buyers involved in procurement must decline gifts, gratuities, or any other benefits which may influence, or might be deemed to influence, equity, or impartiality.
Procurement Code of Conduct
(vi) ensure that all potential suppliers are provided with identical information upon which to base tenders and quotations and are given equal opportunity to meet the requirements;
(vii) establish and maintain procedures to ensure that fair and equal consideration is given to all tenders and quotations received;
(viii) offer a prompt and courteous response to all reasonable requests for advice and information from potential or existing suppliers;
(ix) promote fair and open competition and seek value for money for the Government;
(x) be equitable in the treatment of all suppliers of goods and services;
(xi) seek to minimise the cost to suppliers of participation in the procurement process;
(xii) protect confidential information;
(xiii) deal honestly with suppliers;
(xiv) keep accurate records to justify the process and any decisions made;
(xv) complete a conflict of interest declaration and take steps to avoid involvement in any procurement activity where any conflict of interest (actual or perceived) may arise; and
(xvi) abstain from soliciting or accepting remuneration or other benefits from a supplier for the discharge of official duties.
For all purchases, agencies must ensure that the procurement process meets public sector probity requirements, that value for money is obtained and that the separation of roles and responsibilities between the contractor and agency staff is maintained for the duration of the contract.
Probity issues are dealt with in the Department of Treasury and Finance publication Probity Guidelines for Procurement, which can be located at www.purchasing.tas.gov.au > Buying for Government > Resources > Publications.
(d) Agencies must develop and maintain a process for the recording of conflict of interest declarations. Records kept must:
Information to assist agencies in establishing a suitable process is contained in the Department of Treasury and Finance publication Recording Conflict of Interest Declarations - Guidelines for Agencies which can be located at www.purchasing.tas.gov.au > Buying for Government > Resources > Publications.
(e) Agencies must require suppliers to act ethically and in accordance with relevant industrial relations and occupational health and safety legislation.
ENHANCING OPPORTUNITIES FOR LOCAL BUSINESS