Department of Finance

Procurement process

How you go about purchasing goods and services on behalf of the State depends greatly on the value of what you want to buy.

Have you checked all your preliminary options? See the I'm a Buyer web page.

The following procurement thresholds are listed below:

Flowchart under $50,000

Up to $50,000

For procurement under $50,000, determine the most appropriate procurement method. Factors likely to influence your decision may include:

  • Assessment of the nature of the market (e.g. number of suppliers)
  • Complexity and risk (e.g. requirements of the procurement)
  • Process efficiency (e.g. familiarity with good or service)

The table below shows examples of how to apply the factors above to determine the appropriate procurement method.

Direct sourcing Verbal quotations Written Quotations
Simple requirements and small market Simple requirements and a large market Complex requirements and high risk

Direct Sourcing

Identify a supplier and make the purchase.

Appropriate documentation of decisions must be retained.

Verbal Quotations

  • Identify two to five suppliers capable of supplying the required good or service.
  • Develop a brief description of the good or service.
  • Request quotations by phone, email or face-to-face and give potential suppliers a reasonable amount of time to respond.  Advise the suppliers if there are any selection criteria other than suitability of purpose and price.
  • Evaluate the quotations.
  • Select the successful supplier and provide a brief justification statement on the Finance Verbal Quotation form. A brief evaluation report may be appropriate where there are several qualitative criteria.
  • Advise the successful supplier and confirm by sending an order or a written acceptance. 
  • Advise the unsuccessful bidders.
  • Record the details of all quotations requested and received, including the successful supplier’s details. Use the Finance Verbal Quotation form or similar for this purpose.

For Verbal Quotation process templates go to the Goods and Services templates web page.

For an introduction to buying on behalf of government, the Understanding Goods and Services Buying within the WA Public Sector training is available online. See the Procurement capability and training section of this website for all available procurement training.

Written quotations

See the written quotes process outlined below.



Purchases $50,000 to $250,000

Purchases between $50,000 and up to $250,000

All purchases in this price bracket require written quotations

Written Quotations

  • Develop a specification using the Finance Written Quote Template Suite of documents below.
  • Identify suppliers capable of supplying the required product and/or service or you can release your quote to the open market if you prefer.
  • Request written quotations, typically giving the suppliers between three and ten days to respond.
  • Establish an evaluation panel of two or more appropriately skilled and knowledgeable people.
  • Evaluate received quotations in accordance with the selection criteria and SSC and government policy requirements and select the recommended supplier.
  • Advise the successful supplier by sending an order or a letter of acceptance. Advise the unsuccessful bidders in writing.
  • Publish the contract award details on the Tenders WA system.
  • Ensure that the successful supplier provides the goods or services in accordance with the specification at the accepted price.

If your purchase includes ICT or cleaning or is high risk in nature then use the templates available on the Goods and Services templates web page. If you are looking to engage a Community Service then go the the Not-For-Profit section of this website for more information.

If you are interested in developing your skills in this area see the Written Quotes Process training web page for more information. For all procurement training available, see the Procurement capability and training section of this website.


purchases over $250,000

Purchases over $250,000

If your purchase represents a total contract value of $250,000 (incl. GST) and above, you are required to undertake a competitive procurement process through an open tender.

Government Procurement must be engaged on all open tenders above the $250,000 threshold. The Agency Procurement Services team is available to assist your agency with its procurement requirements. Be sure to engage your Government Procurement (GP) representative as early as possible.

Consider whether your project meets the requirement for a mandatory Gateway Review.

These are the steps to take when going through the open tender process:

Procurement planning

  • Establish the business need
  • Develop the business case
  • Procurement strategy

Contract formation

  • Competitive procurement
  • Award and implement contract

Contract management

  • Manage contract
  • Closure and review

For more information about the tendering process and using the Tenders WA website, visit the Tenders WA training web page. For all procurement training available, see the Procurement capability and training section of this website.


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