Stage 3: Procure

Overview

Stage 3: Procure finalises procurement plans, specifies tender requirements, engages the market and awards a contract.


Investment lifecycle guidance stage 3 prove - Award a contract

Following the decision to proceed and fund the proposal, the investment enters the project procurement process. This should be aligned with the procurement strategy developed in the business case.

Tendering is a phase of the procurement process in which agencies seek offers from suitable suppliers and select the one that offers best value for money.

The outcome of the tendering process is a commercial one, achieved through a process that is formal and standard in government. The tendering process needs to be tailored according to the requirements, relationships with the supplier market and the existing commercial realities.

These issues need to be analysed before commencing a tendering process so that their implications on the process and outcome are clearly understood.

Outputs

Awarding a contract to the successful tenderer is the key deliverable.

Before reaching this point it may be necessary to prepare and evaluate an Expression of Interest (EOI) and Request for Tender (RFT).

Project reporting commences and agencies are required to submit quarterly project status reports on budget, time, scope and risks.

Undertaking this process will enable agencies to consider whether the proposed contractual arrangements are sufficiently robust and flexible enough to deliver the benefits sought within the required timeframe and budget.

High Value High Risk investments

Agenices are required to submit the EOI, RFT, evaluation report and proposed contract to the Treasurer for a deliverability assessment.

The project reports will also be analysed and you may receive requests to address concerns.

A Gate 3: Readiness for market and Gate 4: Tender decision review must be undertaken prior to completing this stage.