SA Government buys goods and services in a number of ways. Each agency has it's own procurement requirements and policies however there are standard rules and processes that apply to all.
Each buying process is tailored to suit the specific requirements needed by an agency however there are common stages and key steps that occur in most buying processes.
What are the stages of the procurement process?
The SA Government's procurement processes are split into three stages. Each stage consists of key steps that agencies will generally take to seek bids from businesses where the estimated contract value of the goods and service is greater than $55,000 (incl. GST).
Click through the stages to learn more about what generally happens in a procurement process.
PLAN
Government's needs are likely to be multi-dimensional and consider both current and future requirements.
Agencies take time to understand and define the business opportunity or business need.
Agencies engage with relevant communities, clients, industry/businesses, and other key stakeholders to identify the goods or services needed.
To get the best outcome from a purchase, agencies must understand the dynamics of the supply market and engage with it effectively.
Agencies analyse and engage with the market to see what the market has to offer, understand the degree of competition that exists and identify potential businesses.
This can occur in many ways.
The Government is committed to ensuring that businesses know about upcoming business opportunities as early as possible.
Agencies publish tender opportunities on the Forward Procurement Plan at least 3 months prior to seeking bids from businesses.
To be successful, agencies develop a buying (procurement) strategy that that best meets its requirements and needs.
The strategy considers business needs, market dynamics, risks and opportunities. It defines the strategy and makes a plan for achieving it including how
- to approach the market
- bids will be evaluated
- success is defined
- value-for-money is achieved
An appropriate government official and/or stakeholder group will sign off on the buying strategy before the approach to market occurs.
SOURCE
Tender documentation is released that contains all relevant information, including the requirements and key dates businesses need to be aware of.
Generally, agencies will engage in a competitive process by either
- inviting three businesses to bid for the contract, with at least one from a South Australian Business where the estimated value of the contract is greater than $55,000 (incl. GST), or
- public invitation open for all interested businesses to bid for the contract. These are advertised on SA Tenders and Contracts, when the estimated value of the contract is greater than $550,000 (incl. GST) or when market dynamics are suitable.
In very limited circumstances, agencies may invite a single business to bid.
Once the tender closes, all compliant bids are assessed inline with the buying strategy.
An evaluation team will read and assess each bid, giving it a score against each of the evaluation criteria. The evaluation team may seek further information from businesses to assist them in finalising the evaluation.
After the assessment, the evaluation team recommends preferred supplier(s) that provides the best value for money and seeks approval for the selection(s) prior to awarding the contract(s).
Supplier(s) may be asked to negotiate to finalise the contract.
Agencies will plan for a negotiation and look to ensure that the negotiation leaves both parties feeling satisfied and ready to develop a successful relationship.
Before a contract is awarded, an appropriate government official and/or stakeholder group will sign off on the selection of a supplier(s). If a contract is awarded to a non-SA Business, the Chief Executive will sign off the selection.
Once the selection is approved, contracts can be awarded and signed.
MANAGE
All businesses that submitted a bid are notified of the selection outcome and given an opportunity to receive feedback.
A contract is finalised and signed. If the contract meets certain criteria, the contract is disclosed on the SA Tenders and Contracts website.
Prior to commencing the contract, the contract manager and the supplier meet to discuss expectations and establish the relationship.
Most contracts will be supported by a contract management plan which outlines how the contract will be managed.
The contract manager and the supplier will work together manage the contract and relationship to ensure the contract is delivered and meets expectations.
Before the contract expires, the agency will begin engagement to inform if the requirement still exists and analysis to determine the best procurement strategy. This includes an open dialogue with the supplier and internal stakeholders on the strengths and weaknesses of the existing contract.
At this stage, should another procurement process be required, the opportunity is likely to be found on the Forward Procurement Plan.
We acknowledge that the procurement process is at times complicated and lengthy. SA Government is continuously looking to improve its practices to make it easier for businesses. We appreciate any feedback.
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