Australian Capital Territory

Government Procurement (Quotation and Tender Thresholds) Guideline 2003 (No 1)

Disallowable Instrument DI2003-248

made under the

Government Procurement Act 2001, section 7 (1) (Procurement guidelines)

The ACT Government Procurement Board makes the following
procurement guideline.

Glen Gaskill
Chair
By authority of the ACT Government Procurement Board
14 August 2003

Government Procurement (Quotation and Tender Thresholds) Guideline 2003 (No 1)

Disallowable Instrument DI2003-248

made under the

Government Procurement Act 2001

Clause 	CONTENTS							Page

1 	Name of guideline 							2
2 	Commencement 							2
3 	Definitions 								2
4 	Notes 								2
5 	Application of guideline to Territory entities			3
6	Non application of guideline to common-use contracts		3 
7	Procurement of goods or services under $5 000			3
8	Procurement of goods or services from $5 000 to under 
$100 000								3
9	Procurement of works under $20 000				4
10	Procurement of works from $20 000 to under $100 000		4
11	Procurement proposals for goods, services or works for 
$100 000 or more							4
12	Exemption from quotation and tender requirements —
select procurement processes					4

1 	Name of guideline

This guideline is the Government Procurement (Quotation & Tender Thresholds) Guideline 2003(No.1).

2 	Commencement

This guideline commences the day after its notification day.

Note The naming and commencement provisions automatically commence on
the notification day (see Legislation Act, s 75 (1)).

3 	Definitions for this guideline

In this guideline:

board—see the Government Procurement Act 2001, dictionary.

local, in relation to a supplier, means a supplier who operates a
business, and has business premises, in the ACT, the cities of
Goulburn and Queanbeyan or the local government areas of Bega
Valley, Bombala, Boorowa, Cooma-Monaro, Crookwell,
Eurobodalla, Gundagai, Gunning, Harden, Mulwaree, Snowy River,
Tallaganda, Tumburumba, Tumut, Yarrowlumla, Yass or Young in
New South Wales.

supplier means an entity who seeks to provide, is providing or has
provided goods, services or works to, or on behalf of, a Territory
entity.

Note Entity includes an individual, see Legislation Act, dict, pt 1.

Territory entity—see the Government Procurement Act 2001,
dictionary.

total estimated value means the total consideration estimated to be
payable by a Territory entity for the duration of all contracts that
result from a procurement process.

4 	Notes

A note included in this guideline is explanatory and is not part of
this guideline.

Note See Legislation Act, s 127 (1), (4) and (5) for the legal status of notes.

5 	Application of guideline to Territory entities

(1) 	This guideline applies to Territory entities, other than—

(a) a corporation under the Corporations Act; and

(b) an entity exempted under subclause (3).

(2) 	A Territory entity may make written application to the board for
exemption from this guideline or a provision of this guideline.

(3) 	The board may give or refuse to give an exemption.

(4) 	An exemption must be in writing.

6 	Non application of guideline to common use contracts

This guideline does not apply in relation to the procurement of
goods, services or works from a supplier under a standing-offer
contract with the Territory or a Territory entity for the supply of
goods, services or works that may be procured by any Territory
entity from time to time during the term of the contract.

Example of common use contract

A contract made between the Territory and a stationery supplier that allows any
Territory entity to purchase items under the contract.

Note	 An example is part of the Act, is not exhaustive and may extend, but
does not limit, the meaning of the provision in which it appears (see
Legislation Act, s 126 and s 132).

7	 Procurement of goods or services under $5 000

A Territory entity must seek at least 1 oral quotation from a local
supplier for the procurement of goods or services with a total
estimated value of less than $5 000.

8 	Procurement of goods or services from $5 000 to under
$100 000

A Territory entity must seek at least 3 written quotations from local
suppliers for the procurement of goods or services with a total
estimated value of $5 000 or more and under $100 000.

9 	Procurement of works under $20 000

A Territory entity must seek at least 1 oral quotation from a local
supplier for the procurement of works with a total estimated value of
less than $20 000.

10 	Procurement of works from $20 000 to under $100 000

A Territory entity must seek at least 3 written quotations from local
suppliers for the procurement of works with a total estimated value
of $20 000 or more and under $100 000.

11 	Procurement proposals for goods, services or works for $100 000 or more

A Territory entity must invite public tenders for the procurement of
goods, services or works with a total estimated value of $100 000 or
more.

12 	Exemption from quotation and tender requirements—
select procurement processes

(1) The responsible chief executive for a Territory entity may, in
writing, exempt the entity from a requirement mentioned in
clauses 7 to 11 for a particular procurement activity.

Examples of when an exemption might be given

1 	only a single or limited number of suppliers are available because of the need
to purchase equipment that is compatible with existing equipment or because
of a supplier’s specialist knowledge;
2 	only 1 local or interstate firm can supply a particular good or service;
3	standardisation upon a given item or product is agreed after public tenders have been called for the original equipment;
4 	the time within which a particular procurement activity must be completed
prevents the calling of public tenders.

Note 1	 The Act, dictionary applies the definition of responsible chief executive
in the Auditor-General Act 1996, dictionary to this Act (including these
Guidelines).

Note 2	 For a chief executive’s power of delegation, see Public Sector
Management Act 1994, div 3.5.

Note 3 	An example is part of the Act, is not exhaustive and may extend, but
does not limit, the meaning of the provision in which it appears (see
Legislation Act, s 126 and s 132).

(2) 	The chief executive may exempt the entity only if—

(a) 	satisfied, on reasonable grounds, that the benefit in giving the
exemption outweighs the benefit in requiring compliance with
this guideline and the applicable provisions of the Government
Procurement (Principles) Guideline 2002; and

(b) 	the exemption is made before the entity submits a procurement
proposal to the relevant approved procurement unit for
examination in accordance with the Government Procurement
(Approved Procurement Units) Guideline 2002.

(3) 	If the chief executive makes an exemption under this clause, the
chief executive may, in writing, direct the entity to do any of the
following:

(a) 	to seek a particular kind or number of quotations for the
procurement activity;

(b) 	to seek a particular number of quotations from local suppliers
for the procurement activity;

(c) 	to invite public tenders for the procurement activity from stated
suppliers;

(d) 	the exemption must include a statement of the procurement
activity to which it applies and a succinct statement of why the
exemption is made; and

(e) 	an exemption under this clause is taken to exempt the entity from
the applicable provisions of the Government Procurement
(Principles) Guideline 2002.