• Procurement Glossary

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    A

    Addendum: additional information about the Request, provided to all registered potential respondents after the initial advertising date.

    Accountable Officer: the head of any given department, or, for a public body, the Chief Executive Officer (whatever their title) of that body.

    Accountable Authority: as defined in section 3 of the Financial Management Act 2006.

    Act: the State Supply Commission Act 1991.

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    B

    Bid: an offer by one party to enter into a legally binding contract with another party, often used interchangedly with quote, tender, response and offer.

    Bidder: the party offering to enter into a legally binding contract with another party, often used interchangeably with respondent and tenderer.

    Bona fide sole source of supply: a situation where it has been clearly established that only one supplier can supply the requirement. This can be established either through a periodic test of the market or consultation with appropriate industry bodies, manufacturers and other sources of expertise.

    Buyers: individuals who undertake transactional procurement and exercise purchasing responsibility for goods and services at low values and low risk. Often these are purchased from contracts established by others, or from simple single use agreements for low level sourcing established by the buyers themselves. Buyers may also include managers and senior executives who are the prime value-for-money decision makers for major procurement projects that are facilitated by specialist procurement staff. Buyers do not have procurement as their single focus.

    Buyers' Guide: the document outlining the rules of access and buying in relation to CUAs or agency specific panel contracts.

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    C

    Common Use Arrangement (CUA): whole of government contract arrangement, established for use by all public authorities, and indicated as a Common Use Arrangement in the Specification.

    Contract: legally binding agreement resulting from acceptance of an offer by the Contract Authority, including such modifications that may have been agreed between the Contract Authority and the respondent before that acceptance.

    Contractor: respondent whose offer has been accepted by the Contract Authority with or without modification.

    Contract management plan: a plan containing all the pertinent information about how the contract is to be managed and which identifies and addresses all relevant issues through the life of the contract.

    Contract variation: an addition or alteration to the terms of contract that is mutually agreed to by both parties to the contract. A contract variation can be documented by letter or a deed of variation.

    Covered procurement: a procurement of goods or services with an estimated total contract price that is above the covered procurement threshold value, and is therefore subject to the terms and conditions of the government procurement chapter of one or more of Australia's Free Trade Agreements.

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    D

    Debrief: the process of advising unsuccessful respondents by request and on a no commitment basis, of potential improvements to their bids which, if made, would make them more competitive for future needs.

    Delegate: a person authorised by the Minister to make general or specified decisions constrained only by the instrument of delegation. Specifically, delegates commit and incur expenditure.

    Direct purchase: means the procurement of goods and/or services by placing an order with the supplier of choice, without seeking other bids.

    Due Diligence: the process of reviewing and analysing in detail the capacity of a bidding organisation to meet future contract performance requirements. This may include a detailed assessment of the organisation's financial stability, legal risks, technical capacity and infrastructure.

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    E

    Electronic means: any method of communication or provision of information using electronic technology, and includes telephone, facsimile, computer connection, electronic mail and internet access.

    Emergency situation: a situation that threatens life, property or equipment.

    Evaluation criteria: standards of judgement, and ranking of importance, used to assess offers and compare alternatives put forward by respondents to a Request.

    Expression of Interest (EOI): identifies potential suppliers interested in, and capable of, delivering the required goods or services. Potential suppliers are asked to provide information on their capability to do the work. It is usually the first stage of a multi-stage tender process.
    General Conditions of Contract: contractual terms which define the obligations and rights of the parties involved in the contract, and form the basis of the contract awarded to the successful tenderer.

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    G

    Goods: Goods as defined in subsection 60(1) of the Sale of Goods Act 1895, to be supplied by a contractor under a contract.

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    L

    Late tender: a tender received after the specified closing date.

    Lodgement address: The address shown in the Request, to which an Offer must be submitted.

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    M

    Memorandum of Understanding (MOU): a document which is used to record the intentions of parties in a less formal way than a conventional contract document, and is not legally binding unless it specifically states that it is intended to be enforceable in the courts.

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    O

    Offer: the Respondent's "offer" to supply the Requested goods and/or services.

    Open tender: the process of publicly inviting offers to supply goods or provide services involving specifications and detailed documentation.

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    P

    Panel contracts: contractual arrangements with more than one supplier, to supply goods and/or services. Often a standing offer with agreed rates but without guaranteed volumes.

    Price: the total price of a procurement for the total period of the contract, including extensions and GST.

    Private sector provider: a private sector organisation engaged by a public authority to undertake procurement of goods or services on behalf of a public authority.

    Procurement: the entire process for obtaining all classes of resources (human, material, facilities and services). It can include planning, design, standards determination, specification writing, preparation of quotation and tender documentation, selection of suppliers, financing, contract administration, disposals, and other related functions.

    Procurement plan: a project management tool that provides a framework for procurement. The procurement plan outlines the key issues that both determine and impact on the procurement strategy and method adopted.

    Procurement process: the step-by-step process for the planning, establishment and contract management of small and large acquisitions.

    Public Authority: a department of the Public Service of the State established or deemed to have been established under the Public Sector Management Act 1994; and an agency, authority or instrumentality of the Crown in right of the State.

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    R

    Registration of Interest (ROI): is similar to an Expression of Interest (EOI) in that it is used to identify suppliers interested in, and capable of, delivering the required goods or services. Potential suppliers are asked to provide information on their capability to do the work. It is usually the first stage of a multi-stage tender process.

    Request: the documentation utilised for Requests for Tenders, Requests for Proposals or Expressions of Interest.

    Request for Information (RFI): a formal request for information to gain a more detailed understanding of the supplier market and the range of solutions and technologies that may be available. It may be used to develop documentation for a future tender.

    Request for Quotation (RFQ): a written process of inviting offers to supply goods and/or services involving simple documentation and a limited number of potential suppliers.
    Respondent: someone who has submitted an Offer in response to a Request.

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    S

    Selection requirements: the requirements used by Finance in evaluating respondents' responses.

    Services: the whole of the services, tasks, work and requisites to be supplied, rendered, provided or performed by a contractor under a contract and any variations provided for by the contract, and includes all and any goods, materials, plant, machinery or equipment supplied, provided or used by the contractor in performance of the contract.

    Specification: sets out details of the performance required under a contract.

    State Tender Review Committee: the administrative, advisory committee established to review high value, high-risk procurement processes.

    Sufficient quotations: an adequate number of bids from bona fide sources of supply so as to ensure open and effective competition. The number of bids considered 'sufficient' will depend on many factors including the nature of the market for the particular product and/or service.
    Supplier: an entity that is providing or has provided goods and/or services to, or on behalf of, a department or agency.

    Supply Policy or Supply Policies: supply policies issued under and in accordance with section 28 of the State Supply Commission Act 1991.

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    T

    Tender: a document in the form of an offer to supply goods and/or services, usually submitted in response to a public or selective invitation such as a Request or RFQ.

    Tender box: a secure location within which tenders, offers, quotations or bids are placed.

    Tender briefing: a forum held where a government representative briefs prospective tenderers regarding a tender process, and responds to questions.

    Tenderer: a party submitting a tender in response to an RFT.

    Total contract value: the estimated total value of the contract for the entire life of the contract, including extensions.

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    V

    Validity period: the period of time for which an Offer will remain open for consideration and acceptance by the Contract Authority.

    Verbal quotation: a verbal process of inviting offers to supply goods and/or services involving a limited number of potential suppliers.

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    W

    Written quotation: a written process of inviting bids to supply goods and/or services involving simple documentation and a limited number of potential suppliers.

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