Northern Territory Government Procurement

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Northern Territory Government Procurement
Brad Irvine Executive Director Procurement Novemb
er 2008
DEPARTMENT OF BUSINESS AND EMPLOYMENT
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Procurement Instruments
Northern Territory Cabinet

Minister Responsible for Procurement
Procurement Act
DBE Procurement Policy Unit
Procurement Regulations
Procurement Directions
Framework
Policy
Process
Agency Procurement Compliance
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Procurement Principles

• Value for Money (VFM) is the expected outcome of
  a well planned procurement process when all key
  requirements are considered, with an assessment
  process that does not favour lowest price.
• Emphasis on Value For Money tendering and
  tender assessment, encompassing
• the NT Governments Procurement Policy
  fundamental principles
• open and effective competition
• value for money
• enhancing the capabilities of local business
  and industry
• environmental protection and
• ethical behaviour and fair dealing
• Outcomes of VFM tender evaluation and assessment
  must be able to withstand
• scrutiny from both Government and industry.
• It is critical that qualitative consideration
  for VFM elements, are considered when
• developing the selection criteria in tender
  documentation and applied when assessing
• tenders.

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Procurement Principles

• Value for Money (VFM) tender assessment criteria
  consists of the following
• non-price considerations and is stated in NTG
  tender documentation
• Past Performance
• Whole of Life Costs/Total Cost of Purchase
• Local Development and Value Adding (Minimum
  Mandatory 20)
• Timeliness
• Capacity
• Innovation and
• any identified project or supply specific
  requirements
• Price is generally a secondary consideration and
  not a weighted criteria

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Agencies, PRB and CAPS

• Agencies
• Government agencies procure goods and services
  through approved processes and procedures which
  comply with the Procurement Act, Regulations and
  Directions. Agencies determine within this
  framework how they procure goods and services.
• Procurement Review Board (PRB)
• The Procurement Review Board provides an
  independent review of the processes used by NT
  government agencies to reach a procurement
  decision.
• The PRB does not conduct tender evaluation
  processes Agencies do.
• Contract and Procurement Services (CAPS)
• Provides service to government agencies,
  including but not limited to, Tender Box
  lodgements, eLodgement and other tender
  receipting, advice to agencies, and limited
  management of Across Government Contracts
  (AGCs).

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Procurement Thresholds
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Procurement Options
Expression of Interest
Specific Supply Contract
Public Tender
Period Contract
Select Tender
Panel Period Contract
Other Government Contract
PRB Approval PRIOR to tendering
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Government Priorities
Indigenous Development
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Government Priorities
Indigenous Development
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Government Priorities
Indigenous Development
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Government Priorities
Indigenous Development
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Government Priorities
Indigenous Development
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Government Priorities
Indigenous Development
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Government Priorities
Indigenous Development
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Government Priorities
Indigenous Development
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Government Priorities
Indigenous Development
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Tenders 07/08 Overview
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Tenders 07/08 by Agency
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DPI Tender Overview
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Future

• Continuous efforts to improve tender and
  contracts
• Efforts in improving qualification and expertise
  by government staff
• New Contracting Models
• Alliance
• Early Contractor Involvement
• Government Policies
• Climate Change
• Sustainable Procurement
• Reductions in carbon footprint
• Focus on measures that procurement processes can
  deliver improvements

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Northern Territory Government Procurement
Brad Irvine Executive Director Procurement Novemb
er 2008
DEPARTMENT OF BUSINESS AND EMPLOYMENT