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(s).
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, with details of the roles and responsibilities of all parties. It must be logical, clear and precise document and include all necessary information for the tenderer to understand (1) the tender process, (2) the contract, and (3) how the evaluation panel will select the tenderer offering best value for money. Standard terms and conditions should be used where available.
The RFT also clearly states whether alternative tenders will be considered, and the basis on which they are to be submitted and considered.
Obtain formal agency approval to release the RFT.
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 provides for deviations from normal circumstances. It 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 market
The tender period must be sufficient to encourage service providers to submit a competitive tender.
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 process is to be transparent, with fair competition that achieves and identifies the best value for money for government.
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 a fair comparison of tenders, using the same documented evaluation method and criteria for each tender. The evaluation process must be conducted by personnel with sufficient skills and knowledge in matters appropriate to the nature, value and importance of the procurement. Any conflict of interest of evaluators must be declared and resolved beforehand.
Agencies must ensure the confidentiality of tenders is maintained.
Under the Gateway Review Process a Tender Evaluation Review can be undertaken before the contract is formalised to confirm that the recommended decision appears appropriate. The review also aims to provide agency decision makers with confidence that the process used to select the proposed service provider is robust.
Obtain approval to award contract to selected service providers(s)
Following completion of the procurement process and selection of a preferred supplier, prepare an evaluation and recommendation report recording the reasons for the recommendation. This is to be submitted it to the agency’s delegated authority for approval to accept the recommended supplier. Reasons for the recommendation, and for passing over of any lower priced tenders, must be clearly documented and approved.
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.