Step 4 - SERVICE PROVIDER SELECTION
The project procurement plan has been approved.
The market is typically approached through Request for Tender (RFT) documentation or a request for Expressions of Interest. The RFT provides the information necessary for tenderers to understand the tender process, evaluation criteria and the requirements of the contract. These requirements should be consistent with the project’s business case.
The process for selecting tenderers, evaluating tenders and awarding the contract to the service provider that demonstrates best value for money must be fair, ethical and transparent.
Prepare request for tender documents and obtain approval for release
The RFT outlines the tender and contract objectives and requirements, including the roles and responsibilities of the parties. It must be logical, clear and precise, and include all information necessary for tenderers to understand the tender process, how the tenders will be evaluated to determine which offers best value for money, and on what basis alternatives may be submitted and will be considered.
It must also describe the work and the contractor’s obligations and set out the proposed risk allocation.
Standard forms of contract (from the Procurement System for Construction) are available for use by agencies.
If the project is valued at $10m or more, or is high risk, a pre-tender report is required to be submitted to Treasury.
Obtain formal agency approval to release the RFT documents.
Prepare tender evaluation plan
The Tender Evaluation Plan must describe how the evaluation process will be carried out, including the evaluation criteria and their weightings. It allocates responsibilities and must be consistent with the evaluation process described in the RFT documentation.
The Tender Evaluation Plan must be completed before tenders close.
Seek offers from the market
The tender period must be sufficient to encourage service providers to submit competitive tenders.
Where open tenders are invited, information on the request for tender must be made available on the NSW Government electronic tendering site (www.tenders.nsw.gov.au). Where possible, the RFT documents should be made available and tenders should be able to be lodged through the NSW Government electronic tendering site.
The invitation and receipt of tenders must be conducted using ethical behaviour and with probity. The procedures for the receipt, opening and registration of tenders must safeguard the security and confidentiality of the tenders.
Evaluate offers and select service provider(s)
The evaluation process must be transparent and fair to all tenderers, using the same documented evaluation method and criteria for each. The process must be conducted by personnel with skills and knowledge appropriate to the nature, value and importance of the procurement.
The aim of the process must be to identify and recommend the tender offering the best value for money for government.
A Gateway Tender Evaluation Review may be undertaken before the contract is awarded, to confirm that the recommendation is appropriate and that the evaluation process was robust.
Obtain approval to award contract to selected service provider(s)
An evaluation and recommendation report must be prepared and submitted to the appropriate agency delegate for approval to accept the recommended supplier.
Details of any changes to the requirements of the RFT documents and reasons for the recommendation and for passing over any lower priced tenders must be included in the report.
If the project is valued at $50m or more, or is high risk, a post-tender review report is to be submitted for Treasury’s concurrence prior to award of the contract.
Following approval, agencies formally award a contract, for example by notifying the successful tenderer of acceptance of the tender. Unsuccessful tenderers must be advised as soon as possible after a tender is accepted. If requested, unsuccessful tenderers are debriefed.
Unless otherwise authorised by the tenderer or required by legislation, information included in unsuccessful tenders is to be treated as commercial-in-confidence.
Information on contracts over $150,000 must be disclosed on the NSW eTendering website within 60 days of contract award.