PROCEDURE FOR REQUESTING AN EXEMPTION FROM THE TENDER PROCESS
REFERENCE
The University Purchasing Policy requires that:
For high-valued acquisitions (greater than $100,000) an RFP or Tender is required unless
exemption has been obtained in writing from the Vice-President (Strategic Finance and
Resources). Grounds for exemption may include the following: incumbent supplier, common
standard, preferred supplier1.
The University’s twin objectives in purchasing are to achieve value for money and fair
trading. Tendering for larger value payments will normally achieve these objectives:
 the tendering process increases competition, which is more likely to achieve the best
value for money
 tendering helps ensure opportunities are given to suppliers fairly and there is probity
around the selection of the supplier.
Tenders are potentially costly exercises. The University policy balances the cost against
the benefits, by only requiring tenders for purchases of > $100,000.
When an exemption for tender is sought, there are higher risks:
 that the market has not been fully assessed, so higher prices may be paid and less
value for money achieved.
 there are also risks around suppliers receiving favourable treatment and claims that
some suppliers are not being given an opportunity to compete.
Tender exemptions are only provided where it is demonstrated that these risks are being
managed and the costs saved by not tendering outweigh the net risk.
The University financial policy 6.9 Tendering for goods and services. States inter alia
6.9.15 Exemption from tender/quotation process
6.9.15.1 The Vice-President (Strategic Finance and Resources) may certify that in certain
instances it is not necessary to use tender procedures. Requests for exemption must be
made in writing and must clearly state the reason(s) for seeking such exemption.
Associated policy(s)
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Policy on the Authorisation of University Expenditure
Risk management policy
Delegations of Authority to Enter into Contracts
Contracts management
https://www.flinders.edu.au/ppmanual/financial/purchasing.html
PROCEDURE
All applications for tender exemption are, in the first instance, to be sent to the
Procurement Manager for review and recommendation to the Vice President (Strategic
Finance and Resources) who is the approving delegate.
WORKFLOW
The exemption application is to provide sufficient information from the acquisition planning
process (refer clause 6.2.1 Acquisition Planning in the Purchasing Policy). Information is
to be succinct and the document should not exceed two pages. The headings below are
to be used where appropriate:
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Any consultation process related to acquisition including mention of any contractual
relationships supporting the purchase.
The reason for acquisition
What supply market research was conducted
An overview of the business case for acquisition
A risk assessment and risk management overview
State the development procedure for specification of the acquisition
State what form of contract to be used
State the process for seeking quotes or tenders
State the management process for contract
Template
Exemption from Tender Application Template
TIMELINES
Given the risk and complexity normally associated with complex acquisitions staff seeking
exemptions from the tender process need to ensure that they allow adequate time for their
application to be processed. It would be considered prudent to allow at least three weeks for
an application to be processed.
DELEGATED AUTHORITY
In the absence of the Procurement Manager the request for exemption should be submitted
to the Director Financial Services.