| (1) | This instruction applies only to the procurement of goods and services and is to be read in conjunction with Instructions 1101 to 1124.
Further information, including a definition of "goods and services", can be found on the Buying for Government section of www.purchasing.tas.gov.au.
Refer to Instructions 1201 to 1229 for information in relation to procurement of building and construction and roads and bridges. |
| (2) | Exemption from the requirement to seek written quotations or call open tenders can only be approved by the Secretary, or an authorised delegate, of the Department of Treasury and Finance.
All exemptions granted, including the reasons for the granting of the exemption, will be disclosed in the Department of Treasury and Finance Annual Report. The contract and the method by which the procurement occurred (in this case, an exemption) will also be required to be reported by the Agency in accordance with Instruction 1110 and 1111.
Exemptions from the requirement to seek written quotations or call open tenders may be applied in the following circumstances:
- where, in response to a prior notice, invitation to participate, or invitation to tender
- no tenders were submitted,
- no tenders were submitted that conform to the essential requirements in the tender documentation, or
- no suppliers satisfied the conditions for participation,
and the entity does not substantially modify the essential requirements of the procurement;
- where the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute goods or services exist for the following reasons:
- the requirement is for works of art;
- the protection of patents, copyrights, or other exclusive rights, or proprietary information; or
- due to an absence of competition for technical reasons;
Where an exemption is sought from the requirement to go to an open tender based on the above circumstance, the absence of available competition should be verified by ICNTAS.
- for additional deliveries of goods or services by the original supplier or authorised representative that are intended either as replacement parts, extensions, or continuing services for existing equipment, software, services, or installations, where a change of supplier would compel the procuring entity to procure goods or services that do not meet requirements of interchangeability with existing equipment;
- for goods purchased on a commodity market;
- where a procuring entity procures a prototype or a first good or service that is intended for limited trial or that is developed at its request in the course of, and for, a particular contract for research, experiment, study, or original development;
- in so far as is strictly necessary where, for reasons of extreme urgency brought about by events unforeseen by the procuring entity, the goods or services could not be obtained in time utilising an open or selective tender. For the purposes of this exemption, a selective tender is one conducted using the processes set out in Instruction 1108 such as a multi-use list, special licence or an expression of interest;
- for purchases made under exceptionally advantageous conditions that only arise in the very short term, such as from unusual disposals, unsolicited innovative proposals, liquidation, bankruptcy, or receivership and not for routine purchases from regular suppliers;
- in the case of a contract awarded to the winner of a design contest provided that:
- the contest has been organised in a manner that is consistent with the Australia - United States Free Trade Agreement (AUSFTA); and
- the contest is judged by an independent jury with a view to a design contract being awarded to the winner;
- in so far as is necessary for the protection of essential security interests; or
- in so far as is necessary to protect access to confidential information the disclosure of which would impede law enforcement or otherwise be contrary to the public interest.
An AUSFTA procurement contract awarded through this process is referred to as a “Limited Tender” for the purposes of differentiating it from a normal TI exemption.
Where a procurement is not an AUSFTA covered procurement, as defined in Instruction 1102, the following additional grounds for an exemption may be applied where appropriate:
- the cost to the agency and to suppliers would outweigh the value for money benefits of calling public tenders;
- urgency in circumstances other than those referred to above; and
- other exceptional circumstances, where conclusive justification of the request is provided.
Where an exemption is sought from the requirement to go to an open tender based on single supplier circumstances, the absence of available competition should be verified by ICNTAS.
Retrospective exemptions will not be granted. |
