Purchasing and Procurement Instructions
October 2015
This information provides practical advice on the application of the Department of Education and Training
(department) Purchasing and Procurement Policies, Delegations and Procedures. The online version of these
instructions is available at Purchasing and Procurement Instructions which provide further support materials used
for purchasing training and a greater understanding.
Process
All externally sourced goods and services are to be purchased using the following sourcing methods:
1. Supply Arrangement – where a suitable government supply arrangement or contract exists and meets the
purchase requirements, this is the first choice for sourcing goods and services; or
2. Request for Quotation Process – if a supply arrangement is not available or suitable, seek quotes to source
the goods and services.
For an overview of the processes, refer to the:
• Quick Guide to the purchasing process and documentation
• Purchasing checklist (PF001)
• Purchasing Flowchart
For assistance, contact the Corporate Procurement Branch on 1300 366 612 or
procurement.corporate@dete.qld.gov.au or ask a question on the Purchasing Network site.
Refer to the Glossary page for help with understanding terms used within this document.
Note: content displaying the  symbol indicates that there are additional detailed instructions or resources available
online only to departmental employees.
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Department of Education and Training – Purchasing and Procurement Instructions
Table of Contents
1.
Supply Arrangements .............................................................................................................................................. 4
2.
Request for Quotation Process ................................................................................................................................ 5

Purchases up to $100,000 .............................................................................................................................. 5

Purchases over $100,000 ............................................................................................................................... 5

Plan the Purchase ........................................................................................................................................... 5

Completing the Request for Quotation Process .............................................................................................. 5

Minimum Quotation Requirements.................................................................................................................. 6
2.1 Expenditure and Purchasing or Procurement Delegation ................................................................................... 7

Separation of Expenditure Delegation from Purchasing and Procurement Delegations ................................ 7
2.2 Integrity and accountability requirements............................................................................................................ 7
2.3 Consider and manage risks ................................................................................................................................ 7
2.4 Consider applicable Government and department policies ................................................................................ 8
2.5 Understanding and researching the supply market to identify potential Suppliers ............................................. 9
2.6 Writing the specification .................................................................................................................................... 10

Mandatory and Desirable Requirements....................................................................................................... 10
2.7 Understanding contract formation ..................................................................................................................... 10
2.8 Determining the evaluation criteria and method ............................................................................................... 11

Up to $5,000 .................................................................................................................................................. 11

Over $5,000 up to $100,000 ......................................................................................................................... 11
2.9 Requesting quotes ............................................................................................................................................ 12

Requesting offers/quotes – up to $5000 (excluding GST) ............................................................................ 13

Requesting Offers/Quotes – over $5000 up to $100,000 (excluding GST) .................................................. 14

Procurements over $100,000 ........................................................................................................................ 14

ICT purchases ............................................................................................................................................... 15

Maintenance and construction projects......................................................................................................... 15

Purchasing of textile clothing and footwear .................................................................................................. 15

Purchasing Second Hand Goods .................................................................................................................. 15

Online Purchasing ......................................................................................................................................... 16

Overseas purchases ..................................................................................................................................... 16
2.10 Evaluation Process............................................................................................................................................ 16

Value for Money Objective ............................................................................................................................ 16

Contact with Potential Suppliers ................................................................................................................... 16

Disclosure of Supplier’s Information.............................................................................................................. 17
2.11 Contract Award .................................................................................................................................................. 17

Note for Principals ......................................................................................................................................... 17

Contract Disclosure ....................................................................................................................................... 17
2.12 Contract Management ....................................................................................................................................... 17

Contract Extension/Renewal ......................................................................................................................... 18
2.13 Managing complaints about Purchasing and Procurement .............................................................................. 18

Preventing Complaints .................................................................................................................................. 18

Complaints Management Process ................................................................................................................ 19
Purchasing and Procurement Instructions v2 October 2015
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Department of Education and Training – Purchasing and Procurement Instructions
2.14 Alternate Sourcing Strategy .............................................................................................................................. 19
3.

Approval of an Alternate Sourcing Strategy .................................................................................................. 19

Alternate Sourcing Strategy Process ............................................................................................................ 20
Purchases by Parents & Citizens Associations (P&Cs) ........................................................................................ 20
Glossary ........................................................................................................................................................................ 21
Purchasing and Procurement Instructions v2 October 2015
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Department of Education and Training – Purchasing and Procurement Instructions
1.
Supply Arrangements
A supply arrangement is the first choice for purchasing goods and services on behalf of the department. If suitable
for the purchase, accessing a supply arrangement simplifies the purchasing process by removing the need to follow
the Request for Quotation process.
Supply arrangements are structured in various ways to best suit the purchasing context and may be a:
• standing offer arrangement (SOA) 
• preferred supplier arrangement
• pre-qualified supplier arrangement.
When purchasing from a supply arrangement:
1. Determine if the arrangement meets the purchase requirements.
2. Review product/service, pricing, terms and conditions and other specific requirements for using the
arrangement.
3. Determine if the contract terms and conditions are suitable, and consider any additional department specific
policies and procedures that may be relevant and need to be included as a requirement e.g. Design
Standards for DET Facilities or Working on DET Facilities.
4. If required by the supply arrangement, seek quotes from Suppliers on the arrangement.
5. Place the order in accordance with the established process of the arrangement, referencing the arrangement
number and any DET specific policies and procedures that must be met.
6. Receipt the product/services and pay the invoice.
Find a suitable supply arrangement by accessing the following:
• Department Supply Arrangements - these are established and managed by the department and include
department specific procedures.
• Whole-of-Government Supply Arrangements- these are established by other Queensland Government
departments. When accessing these arrangements, purchasers should consider any additional department
specific procedures relevant to the purchase.
• Local Buy- If a department or whole-of-Government supply arrangement is not available, there may be Local
Buy arrangements which are suitable for your purchase and offer value for money. When accessing these
arrangements, purchasers should determine if the terms and conditions are suitable and consider any
additional department specific procedures relevant to the purchase, for example, Design Standards for
DET Facilities, Working on DET Facilities. Contact the Local Buy arrangement manager or request a login to
view details.
The benefits of using supply arrangements include:
1. Significantly reduced administrative effort and paperwork.
2. Multiple quotes are generally not required as orders are placed directly with Suppliers, unless required under
the supply arrangement.
3. Competitive prices have been negotiated with Suppliers.
4. Suppliers have agreed to the Queensland Government terms and conditions and for department supply
arrangements, Working on Department of Education and Training facilities conditions.
5. Department officers are assigned to manage the arrangement and assist with resolving issues.
A number of the department’s supply arrangements can also be used by Parents and Citizens Associations as
outlined in the P&Cs Purchasing Policies and Procedures.
If a purchase order is issued from the department’s SAP or OneSchool financial system, the order must include text
that references the arrangement number. For example: “This order is placed under SOA [insert number]”. This
is critical to ensure that the order invokes the agreed terms and conditions of supply for that arrangement and
ensures the negotiated price is obtained.
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Department of Education and Training – Purchasing and Procurement Instructions
2.
Request for Quotation Process
The Request for Quotation process is used if a supply arrangement is not available or suitable to meet the purchase
requirement.
 Purchases up to $100,000
Quotation processes for purchases valued up to $100,000 can be undertaken in schools, regions and central office
units provided that they have appropriately trained Purchasing Delegates. Quotation processes are to be
undertaken or overseen by a Purchasing Delegate and comply with department policies, delegations and instructions,
including the department’s Minimum Quotation Requirements
 Purchases over $100,000
If a purchase is expected to exceed $100,000, a formal Invitation to Offer process is facilitated by Corporate
Procurement. Assistance may be requested on the Request for Procurement Help (PF008) form or by contacting
Corporate Procurement. Corporate Procurement will assign a dedicated procurement specialist to work closely with
the purchaser to determine the best strategy to meet the purchase outcomes. This process is conducted by
Corporate Procurement Branch in collaboration with the purchasing organisation to ensure business outcomes are
met.
Minimum Quotation Requirements
The Minimum Quotation Requirements outline the quotations required to establish value for money and provide
opportunities for Suppliers to bid for government business. The Purchasing Checklist (PF001) may assist in
following the purchasing process.
Using the department’s purchasing forms initiate a request for quotation based on the purchase requirements and
Government terms and conditions (not the Supplier's). The issuing of a purchase order forms the contract based on
the specification, the successful Supplier's offer and agreed terms and conditions.
 Plan the Purchase
Before quotes are requested, purchasers need to plan the purchase to ensure:
• appropriate delegates are involved in the process
• integrity and accountability issues are identified and appropriately addressed
• potential risks are identified and appropriately managed
• applicable department and government policies that may impact the purchase are considered.
The Purchasing Checklist (PF001) form assists with planning the purchase. It identifies key steps and actions and
guides purchasers through the process.
 Completing the Request for Quotation Process
The request for quotation process includes:
• understanding and researching the supply market to identify potential Suppliers
• writing the specification to be understood and accurately defined
• understanding the terms and conditions that will apply to a contract
• determining the evaluation criteria and people to evaluate
• completing and issuing the request for quotation documentation
• receiving and evaluating quotations
• forming a contract with the successful Supplier
• managing the contract delivery and payments
• managing complaints.
If through researching and understanding the supply market to identify potential Suppliers, it is determined that the
best strategy to meet the purchase requirement is to seek less than the minimum quotations required, then an
Alternate Sourcing Strategy may be approved.
There may also be genuine urgency situations, where there is a real or highly probable health, safety, security or
business continuity risk which must be fulfilled within a very limited timeframe. In these cases, approval may be
obtained to allow a purchasing or procurement delegate to engage Supplier/s to meet the critical delivery timeframe.
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Department of Education and Training – Purchasing and Procurement Instructions

Minimum Quotation Requirements
If an approved supply arrangement is not available or suitable to meet the purchase requirements, the following minimum
requirements for sourcing Suppliers shall be followed. This document should be read in conjunction with these Purchasing and
Procurement Instructions and the Ordering and Payment Process Matrix.
Threshold 1
Minimum Quotation Requirements
(more quotes can be sourced to establish value for money and enhance
opportunities for Suppliers to bid for government business)
Low Value Purchasing
$0-$5,000
One (1) quote
(excluding
GST)
 For basic purchases with minimal risk, prices can be obtained
by phone, in store, from a catalogue or online. Use Record of
Purchase form (PF002) (optional)
 For contractor services or purchases with potential risks, use
Request for Quote form (PF003) to initiate a contract based
on Department's terms and conditions
 Consider and manage purchasing risks
 For ICT purchases, seek quote from GITC accredited Suppliers
(if applicable)
$5,001 $20,000
Two (2) written quotes
(excluding
GST)
Intermediate Value
Purchasing
$20,001 $100,000
(excluding
GST)
$100,000
+
 Use Request for Quote form (PF003)
 Consider and manage purchasing risks
 For ICT purchases, seek quotes from GITC accredited Suppliers
 For Direct to Market schools, use D2M forms
 Use Purchasing Checklist form (PF001) (optional) to assist in
following the process requirements
Three (3) written quotes
 Use Request for Quote form (PF003)
 Complete Purchasing Risk Assessment form (PF005)
 For ICT purchases, seek quotes from GITC accredited Suppliers
 For Direct to Market Schools, use D2M forms
 Use Purchasing Checklist form (PF001) (optional) to assist in
following the process requirements
Delegate Determined Sourcing Strategy
High Value Procurement
The Procurement Delegate is to determine the procurement
strategy and method (open, limited or selective) most appropriate
to facilitating the delivery of the best procurement outcome based
on an assessment of complexity, scope, opportunities and risks
associated with procurement objectives, as well as the level of
competition in the supply market
 Up to $500,000 – Procurement strategy to be detailed in the
Procurement Sourcing Strategy form approved by the
Procurement Delegate
 Over $500,000 – Procurement strategy detailed in an
approved Plan for Significant Procurement or a Procurement
Sourcing Strategy form approved by the Chief Procurement
Officer or Category Director, Corporate Procurement Branch,
or Director, Infrastructure Procurement and Contract
Management
Evaluation
requirements
One (1)
evaluator
Ensure quote/s
meets
requirements and
achieves value for
money under
acceptable terms
and conditions
One (1) or
more
evaluators
(Preferably two (2)
for $10,000+)
Use Evaluation of
Quotes form
(PF004)
Two (2) or
more
evaluators
Use Evaluation of
Quotes form
(PF004)
Three (3) or
more
evaluators
Use formal
Evaluation Plan
and Evaluation
Report
Order & Payment
method
 Order and pay with
petty cash, Corporate
Card or Purchase
Order
 Issue Purchase Order
 Confirm receipt of
goods or services
and manage contract
deliverables
 Pay invoice and close
purchase order
 Issue Purchase Order
 Confirm receipt of
goods or services
and manage contract
deliverables
 Pay invoice and close
purchase order
 Formal Contract and/or
Purchase Order (if
applicable)
 Manage contract
delivery and
performance
 Where cost and risk
warrants, a formal
Contract Management
Plan should be
developed
Exceptions to the Minimum Quotation Requirements
a) Purchase is made through the department’s or other Queensland Government department’s supply arrangements, and if not available, Local
Buy, up to any value;
b) Purchase does not exceed $100,000 and is made from another Queensland Government department or Queensland Government Body. For
the purposes of this provision, a "Queensland Government Body" means any of:
I. a body corporate or an unincorporated body established or constituted for a public purpose by the State of Queensland legislation, or an
instrument made under that legislation (including a local authority);
II. a body established by the State of Queensland through the Governor or a Minister; or
III. an incorporated or unincorporated body over which the State of Queensland exercises control;
c) in the case of Capital Works:
I. where the Capital Works Management Framework applies, the framework provides an alternate procurement process; or
II. the work is contracted out to the Department of Housing and Public Works.
d) a mandated Queensland Government policy binds the department to purchase from a specified source.
Note: When undertaking Direct-to-Market (D2M) activities, follow the procedures for D2M Procurement (engaging contractors) which comply
with the department’s Purchasing and Procurement Procedures.
1
Each threshold break is based on the estimated total cost of the goods and services (excluding GST) over the total period of supply. If goods or
services are being purchased routinely throughout the year from one Supplier, then the annual total cost should be considered as the ‘cost of purchase’,
not the individual payments. Aggregating spend over several years may also gain savings and efficiencies in purchasing goods or services and
Corporate Procurement Branch can assist in providing a basic contract for these agreements.
Purchasing and Procurement Instructions v2 October 2015
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Department of Education and Training – Purchasing and Procurement Instructions
2.1
Expenditure and Purchasing or Procurement Delegation
Every purchase made on behalf of the department requires the exercise of both an Expenditure delegation and
a Purchasing or Procurement delegation (depending on value).
The Expenditure and Purchasing or Procurement delegates must understand their responsibilities and be identified
at the beginning of the process. Purchases up to $100,000 may be approved locally by the purchasing delegate,
with purchases expected to exceed $100,000 requiring the approval of a procurement delegate from Corporate
Procurement.
 Separation of Expenditure Delegation from Purchasing and Procurement Delegations
Expenditure Delegations and Purchasing or Procurement Delegations are exclusive of each other. Holding the
authority to approve expenditure does not give that officer the authority to exercise a Purchasing or Procurement
Delegation. Similarly having a Purchasing or Procurement Delegation does not give that officer the authority to
approve the expenditure. Note that the financial limit for an expenditure delegate is GST inclusive and the
purchasing delegate limit is GST exclusive.
As a fraud prevention control, the person that exercises the Expenditure Delegation must not be the same person
that exercises the Purchasing or Procurement Delegation. Exceptions to this requirement are:
• when using a Corporate Card as the holder can approve both the expenditure and purchase of low cost
items (up to the limit of the Corporate Card)
• purchases up to and including $2000 where the expenditure delegation is being exercised within OneSchool
• an Expenditure Delegate purchasing from a department or whole-of-government supply arrangement in
accordance with the terms and conditions of that arrangement.
Refer to the Expenditure delegations and Purchasing and Procurement delegations to identify the appropriate
approval delegates for the purchase.
2.2
Integrity and accountability requirements
Purchasing and procurement activities are to be undertaken with integrity ensuring accountability for outcomes.
Integrity and accountability is about commitment to ethical practices, through honest, fair and respectful
engagement with current or potential Suppliers. At an operational level, this means that high standards of integrity
and accountability are expected from all staff involved in purchasing and procurement activities.
Integrity and accountability is supported by:
• purchasing and procurement activities being undertaken for official purposes only and in the public interest
• following Government and department policy, delegation and process requirements
• complying with all applicable laws
• dealing with Suppliers honestly and treating them fairly
• appropriately managing conflicts of interest, gifts and benefits and contracts with departmental employees
(Section 89 of the Criminal Code Act 1899)
• avoiding personal gain
• ensuring processes and decisions are documented and defensible and retained for audit purposes.
If advice is required regarding integrity and accountability issues, Ethical Standards Unit or Internal Audit can assist.
2.3
Consider and manage risks
An important part of any purchasing or procurement activity is identifying risks. Risk is not necessarily linked to the
value of the activity and relatively low value purchases may have elements of risk involved.
A risk assessment will help with preparing the specification as it may identify issues and treatment options that were
not previously considered. A risk assessment must be undertaken for all purchases valued over $20,000 by
completing the Risk Assessment for Goods and Services (PF005) form. A risk assessment is also recommended
for non-routine, complex or sensitive purchases under $20,000 e.g. where transfer of student or staff information
may occur, products or services involving asbestos containing material or impact on student or staff health and
safety.
The risks associated with the purchasing activity are to be identified, assessed and managed under the department’s
Enterprise Risk Management procedure.
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Department of Education and Training – Purchasing and Procurement Instructions
The objective of undertaking risk assessment is to identify possible risks, analyse the likelihood and consequence
to determine whether they are acceptable, and treat risks if required.
The following are some of the more likely risk issues that may need to be addressed during the purchasing process
and contract delivery:
• health and safety risks to staff, students and the general public through, for example, hazardous plant,
equipment or chemicals and asbestos containing materials
• unsatisfactory warranty, service and support provisions
• actual or potential conflicts of interest or unethical behaviour
• misuse of department’s confidential information or staff or student’s personal information
• Supplier performance or delivery issues
• product quality
• product incompatibility with existing technology or equipment.
Risks identified during the purchasing process and with the successful Supplier are to be incorporated into contract
management for monitoring throughout contract delivery.
For procurement activities (over $100,000), a detailed Risk Management Plan is prepared.
2.4
Consider applicable Government and department policies
The Queensland Procurement Policy is the Queensland Government’s overarching policy for the procurement of
goods and services, including construction. Its purpose is to deliver excellence in procurement outcomes for
Queenslanders. To achieve this purpose, the Queensland Government is committed to the six principles of
government procurement.
The Purchasing and Procurement Procedure details the requirements for conducting purchasing activities within the
department in accordance with the six principles of the Queensland Procurement Policy. To comply with the
requirements of the Queensland Procurement Policy, all staff must follow the department’s:
• Financial Management Practice Manual (FMPM) – Purchasing and Procurement which is the overarching
policy for purchasing and procurement in the department.
• Purchasing and Procurement Delegations
• Purchasing and Procurement procedure
• Purchasing and Procurement Instructions
• Ordering and Payment Process Matrix
The Purchasing and Procurement procedure must be followed when purchasing goods and services from Suppliers
external to the department and funded by the departmental or school bank accounts, regardless of the source of
those funds. Funds could be sourced from students, parents, fundraising or grants and be used for school camps
and excursions. This also applies to any purchasing and procurement decisions made on behalf of school
communities.
Depending on the nature of the purchasing or procurement activity, a number of other Government and department
policies may be applicable. The FMPM Purchasing and Procurement Policy and Purchasing and Procurement
Procedure provide links to other Government and department policies that may be applicable to some activities, but
given the diverse range of goods and services in the department it is not possible to list all of the potential policies
that may apply to an activity.
Refer to the government and department policies and procedures more likely to apply to purchasing and
procurement activities which include:
• Asbestos Containing Material Management in DET Facilities
• Blue Cards – Working with Children Check
• Capital Works Management Framework and Queensland Government Building Construction Training Policy
• Chemical use and disposal
• Consultancies and Contractors
• Contracts with departmental employees
• Criminal History Checks
• Design Standards for DET Facilities
• Direct-to-Market (D2M) Maintenance
• Disposal of assets/equipment (Equipment Management for Schools and Equipment Management for
Business Units), Guideline for Managing Risks with Chemicals (Chapter 6 Disposal)
• ICT - Government Information Technology Contracting (GITC) Framework
• ICT – Use of non-departmental ICT service providers
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Department of Education and Training – Purchasing and Procurement Instructions
•
•
•
•
•
•
•
•
•
•
•
•
•
2.5
Information Management
Leasing
Local content
Minor Works Program
Mobile devices and their services
Outside School Hours Care
Parents & Citizens Association Purchasing Policies and Procedures
Right to Information
School Excursions
Smart Schools Subsidy Scheme
Textile, Clothing and Footwear
Travel
Working on Department of Education and Training Facilities
Understanding and researching the supply market to identify potential Suppliers
Market research can assist in establishing what products and Suppliers are available to meet the purchase
requirements. Market research essentially means understanding how the market for a particular good or service
works:
• Who are the potential Suppliers?
• What alternate products/services are offered?
• Is there an alternative to buying? For example, loan of equipment from another school, utilise internal
resources.
• What are the pricing structures? For example: What are typical prices? Are quantity discounts available?
• What are the characteristics of the market? For example: Is it very competitive? Are there many new or
inexperienced Suppliers? Are the products new and untested? Is reliability in delivery good or poor?
• Are there trial options for the product prior to purchase, for example chairs?
• Can information be gained regarding previous purchases/use of the product or service?
• Is there any ongoing maintenance or cleaning requirements? For example: Is a product difficult to
clean/maintain? Does it require regular cleaning with specific products?
Without this information, it is difficult to assess the risks associated with the purchase, for example, difficulty in
securing supply or the risk of late deliveries. This information is also valuable when defining the requirements in the
specification.
The marketplace does not remain static and there are likely to be variations with regard to supply and demand of
goods and services over time. Variations may stem from factors such as seasonal impacts, changes in consumer
demand, over-supply, discounting and increased market competition.
Market research also assists with determining which Suppliers are genuinely interested in quoting for the work.
Potential Suppliers can be identified through:
•
•
•
•
•
•
•
•
•
•
•
•
existing supply arrangements
register of GITC accredited Suppliers
trade catalogues/magazines/directories and journals
conferences, trade fairs, exhibitions and Supplier promotions
online resources including Supplier websites, industry sites, professional forums, research sites
Yellow Pages
cold callers (Suppliers who approach without request) – make sure competitors/other Suppliers are given an
equal opportunity to bid for any work.
providing quoting opportunities to organisations which support wider community objectives such as the Black
Business Finder and Supply Nation for indigenous Suppliers, Social Enterprise Finder, Australian Disability
Enterprises or other community benefit organisations
local business support organisations such as Chamber of Commerce and Industry Queensland can often
identify potential Suppliers
Industry Capability Network who can assist in identifying Queensland companies that could potentially
provide goods and services
colleagues in other schools/business units who may have purchased a similar product or service
contacting Corporate Procurement Branch or Infrastructure Procurement and Contract Management Unit.
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Department of Education and Training – Purchasing and Procurement Instructions
2.6
Writing the specification
The specification is the statement of requirement and defines what the purchaser wants to buy and consequently,
what the Supplier is required to provide. The specification will form part of any contract that results from the quotes
received. Specifications can be simple or complex depending on the need and meet the essential elements of a
good specification.
Sufficient detail should be included to enable Suppliers to prepare and price their quote. Make clear any essential
requirements or constraints, for example, compatibility with other equipment, delivery times. State the mandatory
and desirable requirements for acceptance. Generally a specification should not be written around a particular
product and should avoid specifying brand names and models. Such specifications are restrictive and may exclude
similar products which may better fulfil the requirements. In rare cases where a brand is specified, then the brand or
model number must be followed by the words ‘or equivalent’.
Market research should have first been undertaken and any potential risks identified before the specification is
prepared. These two activities will help you write the specification. Advice can also be sought from key stakeholders
and subject matter experts, for example Regional Facility Officers.
It is also good practice to form an Evaluation Team (between 1-3 people) at the time the specification is being
prepared. Evaluation Team members can then agree on what is included in the specification and help develop
additional Supplier response questions. The Expenditure Delegate cannot be on the Evaluation Team, however they
can be consulted on what features should be included and what evaluation criteria are important.
 Mandatory and Desirable Requirements
The success of the purchase relies on the specification being a full and accurate statement of your requirements and
accurate assessment of how well Supplier offers meet that requirement. It is important that the specification makes
a clear distinction between mandatory and desirable requirements. Failure to meet a mandatory requirement leads
to rejection of a quote, whereas failure to meet a desirable requirement is not grounds for rejection. Care must be
taken when deciding on mandatory and desirable criteria otherwise the evaluation process may be compromised.
2.7
Mandatory
requirements
These are essential elements of the requirement such as licensing, standards,
insurance, safety etc. Failure to provide these would render the quote as noncompliant and it would be excluded from evaluation. It is important to understand that
if an offer fails to meet a mandatory requirement, no matter how favourable the offer
may be (e.g. price) the offer must be rejected. Use of mandatory requirements should
be kept to a minimum, as too many can make it impossible for any provider to meet,
potentially requiring a new purchasing process. Mandatory requirements should not
unnecessarily exclude suitable products or Suppliers in the marketplace and also
must not be subjective or open to interpretation.
Desirable
requirements
(nonmandatory)
These are elements which are desirable such as delivery, installation, customer
assistance, warranty, support services, timeframes, capabilities and experience.
However what is mandatory as opposed to desirable may differ for each purchase, for
example ‘delivery’ and ‘timeframe’ may in some cases be mandatory requirements.
Understanding contract formation
A contract is an agreement made between two or more parties, whereby legal rights and obligations are created that
are enforceable in law. Contrary to popular belief, contracts do not have to be in writing. A contract can be made
verbally. It is therefore important that conversations with Suppliers do not lead to a verbal contract being created by
accident. It is also important not to inadvertently accept a Supplier’s terms and conditions, where the department’s
Request for Quote and purchase order seeks to invoke the Queensland Government’s terms and conditions. A
contract with the Supplier is generally formed when:
• an offer is made by the Supplier (a quotation is received by the department)
• the department accepts the offer
• in accepting the offer, the parties have agreed to the terms and conditions, the product/service and price
payable (there is certainty of terms); and
• payment or other consideration is promised within the transaction.
Follow the request for quotation process for purchases up to $5,000, purchases over $5,000 up to $100,000 and
purchases over $100,000 to ensure the contract is formed under the appropriate terms and conditions.
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2.8
Determining the evaluation criteria and method
Evaluation criteria provide the basis for assessment of the value for money provided by each quote. As price is only
one element of value for money, other non-cost criteria are used as well. Pre-determined evaluation criteria are
identified on the Request for Quote (PF003) and Evaluation of Quotes (PF004) forms, however the criteria can
be expanded to include items relevant to the purchase.
Prior to seeking quotes, the Evaluation Team must agree on the evaluation method and whether the evaluation
criteria should be expanded. Once the Request for Quote form has been issued to all potential Suppliers, the
evaluation method and criteria cannot be changed.
 Up to $5,000
For relatively low value purchasing activities typical evaluation criteria include:
• Costs – the quoted price is competitive and is within budget.
• Compliance with the requirements (specification) – this can be demonstrated by the Supplier’s explanation
as to how the work will be done, how specified standards will be achieve etc.
• Support services – the warranty, support and servicing provisions.
 Over $5,000 up to $100,000
The Evaluation of Quotes (PF004) form is used for the evaluation of quotes up to $100,000. This form guides
evaluators through evaluating quotes against pre-determined evaluation criteria and is approved by the evaluators
and purchasing delegate.
The Evaluation of Quotes form uses the following evaluation criteria:
• Conformance to requirements (specification): what has been offered and how does it meet the mandatory
requirements (if any) and the desirable requirements of the specification. This may include delivery or
installation requirements; safety requirements; the Supplier’s capabilities and experience; and delivery
methodology or other requirements.
• Whole of life costs: purchase price, delivery costs, training costs, etc.
• Support services: warranty, training, delivery, maintenance, etc.
The evaluation criteria can be expanded to reflect the requirements of the purchase. If the evaluation criteria have
been amended, ensure the Request for Quote (PF003) form includes additional relevant questions in Section 2 –
Supplier Response. This will assist with evaluating the quotes received. The Evaluation of Quotes (PF004) form
should also be amended to reflect the amended criteria.
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Evaluation methods for purchases up to $100,000 include the Numerical Scoring and Weighted Scoring methods
using the Evaluation of Quotes (PF004) form.
Numerical
Scoring
method
The Numerical Scoring method is the recommended method for simple, low value, low risk
purchases up to $20,000 where criteria are of equal importance to establish value for
money. A numerical rating scale of 0-5 is allocated to each criteria response. The quote
with the highest total score is successful.
Rating
Descriptor
5
Exceeds requirements and offers major benefits
4
Meets requirements and offers some minor benefits
3
Meets requirements
2
Does not meet requirements but may be adaptable to meet
needs
1
Major non-compliance with requirements
0
Has not responded
This method allows the Evaluation Team to rate how well a quote meets the requirements
against the evaluation criteria.
Weighted
Scoring
method
The Weighted Scoring method is a scoring method for more complex, higher value
purchases over $20,000 where criteria importance is assigned a weighting. A numerical
rating scale of 0-5 is allocated to each criteria response and then weighted to calculate the
highest total score. W eightings must be decided before requesting and evaluating quotes.
For example:
•
conformation to requirements (specification): 50%
•
support services: 20%
• whole of life costs: 30%
Be careful of applying high weightings to cost as it may result in the cheapest quote being
successful for an inferior product or service. Refer to quote evaluation and approval for
more information on scoring methodology.
For more information of evaluation methodologies, refer to the Evaluating offers procurement guide.
For purchases over $100,000, an evaluation plan is produced using templates maintained by Corporate
Procurement Branch. The evaluation plan includes the procurement strategy and offer process, risk management
plan, evaluation criteria and pre-determined weightings, cost analysis strategy, procurement objectives and benefits.
The evaluation plan is approved by the evaluation committee and procurement delegate.
2.9
Requesting quotes
If there are no suitable supply arrangements, the Request for Quotation Process is used to seek the required
minimum number of quotes based on the value of the purchase. The Purchasing Checklist (PF001) form can
assist in following the process.
The market research conducted before reaching this stage of the process should have identified Suppliers genuinely
interested providing a quote. Quotes are sought to establish prices and terms and conditions being offered by the
potential Supplier of goods and services. The quote from the Supplier constitutes a legal offer, which, on acceptance,
becomes the basis of the contractual relationship between the department and the Supplier.
When considering the cost of a purchase, the total cost of the goods or services over the total period of supply are to
be considered. If a good or service is being purchased routinely throughout the year from one Supplier, then the
annual total cost should be considered as the ‘cost of purchase’, not the individual payments. Aggregating spend
over several years may also gain savings and efficiencies in purchasing goods or services and Corporate
Procurement Branch can assist in providing a simple contract for these agreements.
It is not acceptable or appropriate to split a purchase in order to remain within the specified purchasing thresholds or
delegations. These thresholds and delegations are in place to ensure adequate controls and reduce the likelihood of
fraud.
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
Requesting offers/quotes – up to $5000 (excluding GST)
How to request quote/s
Terms and conditions for purchase
For basic purchases with minimal risk up to $5,000, a minimum of
one (1) quote/price can be obtained by phone, in store, from a
catalogue or online. The Record of Purchase (PF002) form can be
used when seeking quotes to document the description of the goods,
the Supplier’s quote and confirm the quote meets requirements. The
form is not mandatory however it is good practice to use the form as
a record of conversation. This can be useful if there are any
concerns about quality and price when product is delivered. When
seeking a quote over the phone:
• Determine what terms and conditions will apply to the purchase
and review to understand any risks and whether they are
acceptable to the department.
• Prepare a clear list of the requirements and any questions to ask.
• Clearly identify yourself, along with the name of your business unit
or school.
• Obtain the name of the Supplier’s salesperson with whom you are
speaking.
• Ask if any Government prices are available or settlement discounts
for early payment.
• Ask the Supplier if they accept Corporate Card and if there is a
surcharge.
• Obtain other details such as method and time for delivery and any
packing or freight charges.
• Where time permits, it is also good practice to request verbal
quotes be confirmed in writing (letter, fax or email).
Corporate Card should be used
for basic purchases with minimal
risk under $5,000. Corporate
Card is not suitable for purchases
with potential risks as the
purchase is usually formed under
the Supplier’s terms and
conditions which may not
adequately protect the
department. Before accepting the
Supplier’s terms and conditions,
officers should weigh up potential
risks and review and consider
whether the Supplier’s terms and
conditions expose the department
to unnecessary or unacceptable
risk.
For contractor services or purchases with potential risks up to
$5,000 a minimum of one (1) quote. Written quote/s should be
obtained using the Request for Quotation (PF003) form and a
purchase order issued to the successful Supplier. Any risks identified
should be managed through specific requirements in the specification
and the use of the department’s contract terms and conditions.
Purchase orders raised through
SAP or OneSchool Finance state
that the Queensland
Government’s and department
contract terms and conditions
apply to the purchase. The
Supplier’s terms and conditions
should not be accepted or agreed
to in these circumstances.
Packaged software purchases or
ICT consumables can be made
using a Corporate Credit Card up
to the cardholders limit. All other
ICT purchases obtained from
GITC Suppliers applies the
Government Information &
Technology Conditions (GITC)
referenced on the purchase order.
For ICT purchases up to $5,000, a minimum of one (1) quote can
be obtained from GITC accredited Suppliers unless the purchase is
for low value packaged software or ICT consumables which can be
made through Suppliers who have not signed up to the GITC
framework provided that:
• the software is a product that will be installed without modification
• the licensing arrangements applicable to the packaged software
are strictly adhered to
• consumables including items such as keyboards, mouse, USB
memory devices, blank CDs and DVDs etc. that are not intended
to extend to the purchase of components for the building of
complete machines or to the purchase of items covered by
departmental or whole-of-Government Standing Offer
Arrangements.
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
Requesting Offers/Quotes – over $5000 up to $100,000 (excluding GST)
How to request quote/s
Terms and conditions for purchase
A minimum of two (2) quotes over $5,000 up to $20,000 and a
minimum of three (3) quotes over $20,000 up to $100,000. The
Request for Quotation (PF003) form is used for seeking quotes and
requires the Supplier to provide a written quote in accordance with
standard government terms and conditions. The Request for Quote
form is divided into two sections:
Section 1:
For the purchaser to complete:
The Request for Quotation (PF003)
form invokes the Queensland
Government’s Conditions of Offer
and any eventuating contract is
based on standard Queensland
Government and department
contract terms and conditions when
the purchase order is raised on the
Supplier.
•
•
•
•
•
who is seeking the quote
closing date and time
description of the requirement or a more detailed specification
delivery date and address
any support services required such as warranty, maintenance or
training
• Conditions of Offer and Conditions of Contract that are applicable
to the purchase
• Supplier response, which include pre-determined questions and the
ability to include additional questions specific to the requirement
which assists with evaluation.
Section 2
For the Supplier to complete:
•
•
•
•
•
•
•
•
•
the Supplier's details and authorised representative
details of the product(s)/services offered and pricing
if a settlement or early payment discount is available
delivery timeframe
whether the Supplier agrees to the terms and conditions specified
on the Request for Quote form
warranty, insurance and licensing compliance
how long the quote will be valid
for ICT purchases whether the company is GITC accredited and
the Modules they are signatory to
answers to any additional questions specific to the requirement to
assist in evaluation.
Purchasers should be familiar with
these terms and conditions to
understand the obligations, rights
and protections in place for the
quotation process and contract.
These consist of:
• the department’s Conditions of
Offer and Queensland
Government Short Form
Conditions of Contract;
• for ICT purchases, Conditions
of Contract under the GITC V5
Framework;
For Suppliers who undertake work
on the department’s sites, including
work involving asbestos containing
material, the Working on
Department of Education and
Training Facilities applies.
The Request for Quote form is emailed or faxed to potential Suppliers. When seeking written quotes:
• Material is provided to all potential Suppliers within the same timeframe, and each Supplier has access to
the same material (that is not commercial-in-confidence).
• Do not disclose one Supplier’s information to the other e.g. do not draft an email going to all Suppliers
where the identities of the Suppliers are disclosed to each other.
• If one of the Suppliers seeks clarification on the requirement, information which is not commercial-inconfidence should be made available to all other Suppliers.
• Quotes should be received by the stated closing date and time.
• Quotes should not be evaluated or read before the closing date and time. Where they are received prior
to the closing time, they should be stored securely.
• It is unethical to discuss the details of one Supplier’s quote with another Supplier.
Suppliers must be provided with adequate time to respond. Where timeframes are tight, it is useful to
contact Suppliers to gauge their ability to provide the supply or services or to quote in the timeframe
required. The time provided to Suppliers to quote is dependent on the complexity of the product or service
being sought. Generally, allow between 1 to 3 weeks for Suppliers to prepare and submit a quote.
 Procurements over $100,000
Purchases estimated at over $100,000 are to be referred to the Corporate Procurement Branch for advice and
assistance. A delegate from the Corporate Procurement Branch will, in consultation with the client, determine the
best sourcing strategy and provide templates to undertake the Invitation (quotation) process. Sourcing of goods and
services over $100,000 use the whole-of-Government terms and conditions for one-off contracts, standing offer
arrangements or GITC. Invitation to Offer documents are issued to Suppliers based on whole-of-Government terms
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and conditions with formal contracts signed by both parties. Contact the Corporate Procurement Branch for access
to the invitation to offer templates and assistance in over $100,000 procurement activities.
 ICT purchases
Purchase of information and communication technology (ICT) goods and services must be made through
Suppliers who have signed a Government Information and Technology Contracting (GTIC) Agreement (some
exceptions apply).

Maintenance and construction projects
Maintenance and construction projects use their Request for Quote documentation and terms and conditions under
the Capital Works Management Framework. Refer to:
• Minor Works Program
• School Managed Facility Projects instructions
• Direct to Market Maintenance
 Purchasing of textile clothing and footwear
Purchasing of textile clothing and footwear e.g. school uniforms and sporting apparel, must comply with the
Queensland Code of Practice for Employment and Outwork Obligations, textile clothing and footwear suppliers.
If using a department or whole of Government supply arrangement the compliance and reporting requirements have
already been addressed and purchasers can simply follow the ordering and payment process applicable to the
supply arrangement.
If not using a supply arrangement and are requesting quote/s, Suppliers must provide evidence of compliance with
applicable awards and legal obligations relating to employees and outworkers when submitting an offer for goods
and services to the department. A Supplier is only required to provide this evidence if they currently use workers,
intend to use workers or have previously used workers residing in Australia. This evidence can be provided by
either:
• Submitting a statutory declaration form declaring compliance in the twelve (12) months prior to the Offer
being lodged; and/or
• In order for a Supplier and their Suppliers/sub-contractors to comply with the Fair Work Act, quarterly reports
listing all textile, clothing or footwear contract workers they are employing within Australia, must be provided
to the Fair Work Commission. Upon receipt of the reports, the Fair Work Commission issues all accredited
Suppliers with a current Certificate of Registration. A copy of the Certificate issued by the Fair Work
Commission could also be requested.
The following clause is to be inserted in the Request for Quotation form (PF003 Section 1) as an additional
Condition of Offer:
If applicable, the Supplier must provide evidence of compliance with the Code of Practice on Employment and
Outwork Obligations for Textile Clothing and Footwear Suppliers when submitting an Offer. The evidence may
be provided in a statutory declaration form or Certificate of Registration issued by Fair Work Commission to
confirm compliance in the twelve (12) months prior to the Offer being lodged. Failure to submit evidence of
compliance will result in the Offer not being considered.
Any purchases of textile clothing and footwear (not using a supply arrangement) must be reported by schools, P&Cs
and corporate/regional offices to Queensland Treasury by 31 August for all textile clothing and footwear purchased
during the previous financial year. The PF011 form may be used for this purpose.
 Purchasing Second Hand Goods
When purchasing second hand goods only one quote is required, however, the purchaser should undertake market
research to ensure that an appropriate price, based on the age and condition of the product, is proposed.
Purchasers should be aware that it is unlikely that second hand goods will be warranted and there is no guarantee
on the condition of goods when purchasing from internet auction sites. Any health and safety risks with purchasing
second hand goods for use by school staff, students or visitors must also be considered.
GITC is not required when buying second hand computers. However, purchasers should check whether a Windows
operating system licence is provided with the computer. If no licence is provided, then this cost must be factored into
the value for money decision, along with the age, condition and quality of the goods and any warranty offered.
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 Online Purchasing
A Corporate Card can be used to purchase goods and services over the Internet. Refer to the Corporate Card
Guidelines for details on creating departmental accounts with secure third party payment providers and the
security requirements. When considering purchasing over the internet, it is advisable to contact the seller to ensure
that they will accept the proposed method of payment prior to a bid (eBay) or order being placed.
 Overseas purchases
When purchasing from overseas consider if:
• Competitive local Suppliers are afforded a full, fair and reasonable opportunity to supply.
• There are any product or warranty issues, you have to liaise and negotiate with the Supplier overseas rather
than locally.
• Depending on the value of the product, imported goods are subject to duty, GST and other taxes and
charges. The Australian Customs and Border Protection Services website contains information on importing
goods into Australia.
2.10
Evaluation Process
Evaluation is the process to select the best Supplier that meets the specified requirements and achieves value for
money. The steps in the evaluation process include:
1.
2.
3.
4.
Receive quotes and record details
Prepare the evaluation team
Quote evaluation and approval
Negotiations with successful Supplier (if required)
 Value for Money Objective
Obtaining value for money is central to the evaluation process. Value for money is not restricted to price alone, and
includes consideration of:
• Cost related factors including up front price, whole-of-life costs and transaction costs associated with
acquisition, use, holding, maintenance, cleaning (products and frequency) and disposal.
• Non-cost factors such as fitness for purpose, quality, service and support and sustainability impacts.
• The overall objective of the purchase and outcome being sought.
For low value purchases up to $100,000, value for money is generally achieved by buying off established supply
arrangements where available or seeking quotes from competitive local Suppliers in accordance with the
department’s Request for Quotation Process.
For procurement over $100,000, value for money requires forward planning including demand and supply analysis
leading to determine the best way to procure the goods and/or services. For further information refer to the Value for
Money guide.
 Contact with Potential Suppliers
During a Request for Quotation process, potential Suppliers may seek clarification or confirmation of the requirement
details. If the specification is unclear or incomplete, clarification on the issue should be provided to all potential
Suppliers in writing to ensure that no Supplier is disadvantaged.
Care must be taken where the query from a prospective Supplier contains “commercial-in-confidence” material or
discloses a particular approach to how they might frame their quote or invitation to offer response. In this case it may
be appropriate to only respond to that Supplier and not more broadly if, in answering the clarification question, the
response discloses information that is confidential or could, if released to all parties, give other Suppliers an insight
into how the enquirer might be framing their response on that element.
It is important to manage the distribution of information when seeking quotes from prospective Suppliers to ensure
that:
• All prospective Suppliers have access to the same information at the same time.
• Any dealings with prospective Suppliers are recorded and retained for transparency and accountability.
• Any suggestion of preferential treatment is avoided.
• Information and document exchange during any quotation or invitation to offer process should be managed
through a single departmental contact, generally the purchasing delegate. This role includes processing
questions from the evaluation team to potential Suppliers in clarification of their documents, and in the
handling of the replies.
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This requirement should not preclude normal evaluation methodologies taking place such as bringing together
evaluation team and Supplier representatives for the purposes of product demonstrations etc. during the evaluation
phase.
 Disclosure of Supplier’s Information
Except in accordance with Contract Disclosure requirement and Right To Information, under no circumstances
should any Supplier’s quote documentation be disclosed to a third party. Such information should be considered
“commercial-in-confidence” and only used for the purpose it was intended.
Disclosure should only be in accordance with the Information Management procedure or the Contract Disclosure
guidelines for awarded contracts.
2.11
Contract Award
Once the successful Supplier has been selected from the evaluation process, the contract is then awarded.
The steps for awarding the contract include:
1.
2.
3.
4.
Checking the successful Supplier’s credentials and delivery capability.
Seeking approval to proceed with the purchase.
Notifying the outcome to the successful Supplier and confirming their acceptance.
Issuing a purchase order, referencing the Supplier's quote number/date or SOA number (this will establish
the contract). If a formal contract document is required, ensure contracts are properly signed, in addition to
raising the purchase order in the financial system. If the purchase is under $5,000, use of corporate card
initiates the order and payment.
5. Notifying and offering feedback to unsuccessful Suppliers.
Issue of a purchase order forms the contract based on the request for quotation, the successful Supplier’s offer and
the government terms and conditions. Purchase orders are created for the total value of the purchase and at the time
the contract is awarded. This ensures the appropriate expenditure delegate and purchasing delegate is aware of the
total cost prior to approving and avoids possible order splitting. The purchase order also establishes the commitment
in the finance system and facilitates payments against the purchase order. See SAP shopping cart or OneSchool
guidance materials. For more complex procurement activities, a formal contract or agreement may also be signed
by both parties which are prepared by Corporate Procurement.
Once the contract is awarded, you then commence managing the contract delivery and payments to ensure both
parties fulfil their obligations and the purchase outcomes are met.
 Note for Principals
Principals are also reminded to maintain appropriate compliance with departmental policies when engaging
Suppliers or third party providers to undertake work at schools. All engagements should be arranged through a
formal contract or purchase order which:
•
•
•
describes the services to be provided
protects the commercial interests of the school/department, and
ensures appropriate safeguards for students, staff and assets are established.
 Contract Disclosure
All awarded contracts and supply arrangements, where the value of the contract or arrangement over its initial term
(excluding extensions) is $10,000 (incl GST) and over, are to be published on the Department of Housing and Public
Works QTender website, within 60 days of contract date. The Corporate Procurement Branch maintains processes
in place to capture awarded contracts and publish the details.
2.12
Contract Management
Contract management is the active monitoring and control of all aspects of a relationship between the successful
Supplier and the department. Effective contract management aims to ensure commitments and obligations from
Suppliers and buyers are effectively met in delivering value for money outcomes and managing inherent risks.
The level of contract management required will depend on the complexity, value and risk of the transaction. The
purchase of a low value, low risk, routine product or service will not require the same level of contract management
as the engagement of a tradesperson to work on site for a number of weeks or a high value, high risk/complex
contract or department supply arrangement. However, all purchases require some level of contract management.
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Contract performance issues should be considered early in the sourcing process to ensure contracts include
appropriate terms and conditions, performance measures and reporting requirements to support effective contract
management. When the purchasing/sourcing process ends, the administration and management of the contract is to
be undertaken by an appropriately skilled client/user/buyer representative, which may include a contract
management checklist or plan, applicable to the value and risk, to ensure:
•
•
•
•
•
•
•
•
•
•
•
•
•
Key activities, roles and responsibilities for managing the contract deliverables and supplier performance are
defined.
Risks are identified and managed throughout contract delivery.
The contract administrator/manager has a good understanding of the purchase requirements and the
contract terms and conditions agreed with the successful Supplier.
The Supplier understands the purchase requirements and subsequently fulfils their obligations in accordance
with the agreed terms and conditions, including the DET Code of Practice for Suppliers.
The Supplier maintains valid insurance or licensing requirements for the period of the contract.
Goods or services are delivered on time, are receipted appropriately and invoices are paid on time.
Specifications and service standards are met through active monitoring of performance and deliverables.
The purchaser (business area or school) fulfils their obligations under the contract such as allowing the
Supplier access to premises and paying invoices on time.
The contract administrator/manager understands the clauses regarding contract variations and extensions
and ensure variations and extensions are approved and processed correctly.
Supplier invoices are processed and paid within 30 days.
Contract delivery or performance issues are addressed promptly and disputes are managed appropriately.
Records are maintained and retained.
Upon contract finalisation, confirm all close-out activities have been performed and review the contract
performance for future learning’s.
Effective contract management is founded on a willingness to communicate with the Supplier. This should begin
immediately after the purchase order is issued or contract is signed, to confirm that the Supplier understands key
aspects of the contract and to resolve administrative matters that could otherwise interfere. If the contract is to last
some time, this initial contact is key to generating a sound working relationship. Likewise, when problems arise, the
sooner they are raised in conversation with the Supplier, the easier their resolution.
A Contract management checklist or Contract management plan, applicable to the value and risk of the contract,
and additional tools and guidance on managing contracts are available in the Queensland Government Contract
Management Framework and guidelines at
http://www.hpw.qld.gov.au/aboutus/ReportsPublications/Guidelines/Pages/ContractManagementGuidelines.aspx

Contract Extension/Renewal
Before a contract expires, it is important to determine if there is an ongoing business need and what approach will
achieve the best value money outcome e.g. finalisation/close-out if no longer required, extending or renewing the
contract, or re-engaging the market under a new procurement process.
A contract extension occurs when an existing contract duration is extended for a period of time. At the time a
contract is extended, other terms might also be varied, such as pricing. A contract renewal occurs when an existing
contract comes to an end i.e. expires, and the parties agree to directly enter into a new contract for the same or very
similar services.
Before any contract is extended or renewed, it must be demonstrated that the decision and approval to extend or
renew the contract complies with the department’s purchasing and procurement procedures and is the best strategy
to deliver value for money. In particular, the extension/renewal decision must be supported by evidence of ongoing
business needs, a supply market analysis, and the Supplier(s) performance should be evidenced as satisfactory and
meeting expectations.
A record of the reasons and approval of the contract extension or renewal must be maintained including signed
memos/briefs, records of conversations and emails to support the extension or renewal. Where there is no
extension option previously incorporated into an existing contract, or for contract renewals, an Alternate Sourcing
Strategy (PF006) is required for approval by the expenditure delegate and the purchasing or procurement delegate.
2.13

Managing complaints about Purchasing and Procurement
Preventing Complaints
Conducting purchasing activities with integrity ensuring decisions are defensible is a good start to preventing
complaints with the purchasing process. Many complaints may be prevented through:
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ensuring staff involved in purchasing are suitably trained and understand purchasing policies and
procedures
ensuring that clear specifications are developed to enable Suppliers to quote accurately and utilise both
parties time and effort efficiently
taking the time to inform Suppliers about the quotation and evaluation process so they understand
government processes
providing opportunities for local Suppliers to bid for business and treat all Suppliers equally.
Complaints Management Process
Complaints may still arise from unsatisfied Suppliers or issues involving conflict of interest or misconduct. In the first
instance, complainants should be encouraged to seek resolution though the area managing the purchasing process.
The complaint can be managed by:
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Acknowledging receipt of the complaint in writing within three business days outlining the process that will be
followed.
Determining time frames to monitor the progress of the complaint and provide status feedback to
complainant.
Conducting an investigation of the complaint and record reasons for upholding or rejecting the complaint.
Providing a response to the complainant by telephone or face to face and follow with written advice.
If the complainant wishes to pursue the matter further, then the complainant may document their concerns in writing
using the Procurement Complaint (PF010) form and forward to Corporate Procurement Branch for action. This helps
to ensure independent consideration of an issue and provides the opportunity to consider what changes may be
needed to prevent recurrence.
If the complaint relates to suspected official misconduct, maladministration or other wrongdoing within the
department, the Managing Employee Complaints procedure will apply.
2.14
Alternate Sourcing Strategy
If though understanding and researching the supply market to identify potential Suppliers, it is determined that the
best strategy to meet the purchase requirement if to seek less than the minimum quotations requirements, then an
alternate sourcing strategy may be approved.
Without limiting the range of circumstances that may justify a decision to approve an Alternate Sourcing Strategy,
suitable circumstances may be:
• The nature of the requirement is such that common sense dictates the use of a local provider without
seeking alternative offers. For example:
o The use of a nearby council pool for swimming lessons or competitions
o The use of the only bus service in town
o Students request that their graduation ceremony be held at a particular venue that is perceived as
offering a superior class of ambience as befitting the occasion.
• Periodic price checks (for example quarterly) with Suppliers outside the local region confirm that little value
can be gained by sourcing the requirement outside the local region.
• The nature of the good or service is unique and can only be sourced from one or two Suppliers.
 Approval of an Alternate Sourcing Strategy
For probity and accountability purposes, any Purchasing or Procurement Delegate who approves an Alternate
Sourcing Strategy must file a written justification with the purchase documents. The decision must be defensible and
capable of withstanding scrutiny. This may be a full written explanation or be provided in the Approval of an
Alternate Sourcing Strategy (PF006) form or (PF006) email version.
Up to $20,000
Over $20,000
A Purchasing Delegate can approve an Alternate Sourcing Strategy up to the value of
$20,000 (ex GST) in situations where the best strategy is to seek less than the
minimum required quotes. These can be situations where, for example:
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there are only one to two Suppliers in the local region and seeking quotes
outside the local region is not likely to achieve significantly better value for
money or
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due to the unique nature of the requirement and the market place, there are
only one or two Suppliers capable of supply.
If the purchase is over $20,000 (ex GST) the request must be sent to a Procurement
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Department of Education and Training – Purchasing and Procurement Instructions
Delegate within the Corporate Procurement Branch or Infrastructure Procurement and
Contract Management for approval. Procurement Delegates will not approve any
Alternate Sourcing Strategy requests in retrospect.
 Alternate Sourcing Strategy Process
Having an alternate sourcing strategy approved does not preclude the need to follow process requirements such as
considering risk, seeking a written quote/s, and evaluating offers to ensure value for money. Purchasing processes
when following an Alternate Sourcing Strategy should include:
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3.
identifying potential Suppliers through market research
seeking approval of the alternate sourcing strategy to seek less than the minimum quotes
writing the specification and determine the evaluation criteria
competing and issuing the request for quotation documentation
receiving and evaluating quote/s to ensure value for money
forming a contract with the successful Supplier
managing the contract performance and delivery
Purchases by Parents & Citizens Associations (P&Cs)
Whenever P&Cs are undertaking purchasing activities, they are to follow the Purchasing Policies and Procedures for
P&Cs. This document outlines their purchasing method options which include:
1. Accessing department and whole-of-Government supply arrangements
2. Requesting the school to manage the purchase; or
3. Detailed instructions when the P&C chooses to undertake the purchase e.g. minimum quotes required.
It is important for schools to note the rules around P&Cs entering into agreements and approvals by the Principal as
the Minister’s representative.
To direct P&Cs to these procedures, they can either go directly to the Education website and navigate to relevant
department policies under About us - P&C Associations, or access the P&Cs Qld website and go to the purchasing
policy section of the support guide for P&Cs.
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Department of Education and Training – Purchasing and Procurement Instructions
Glossary
Term
Definition
Contract date
The date when a contract, or standing offer arrangement, is accepted by, executed by,
or effectively binds all parties thereto.
Evaluation criteria
Criteria established to evaluate compliance of offers with the specification.
GITC
The Government Information Technology Contracting Framework which Suppliers
pre-agree to standard contractual terms and conditions for use in the acquisition of
ICT products and/or services.
Goods and services
Include all property (except for real property) and all types of services including
building and construction services.
Indigenous Supplier
A company either 50% or more Indigenous owned and/or one that employs 75% or
more of Indigenous workers.
Invitation to Offer
Documentation issued by the department inviting offers/quotes for the provision of
Goods and/or Services. Also see ‘Request for quote/quotation’.
Limited offer process
A procurement method where the department invites a Supplier/s of its choice to
offer.
Local Supplier
An Australian or New Zealand Supplier of services or goods produced wholly or partly
in Australia or New Zealand.
Offer
A Supplier’s response to a request for quote or invitation to offer to supply goods and
services. Offer is also known as tender, quote, quotation and bid.
Open offer process
A procurement method where all interested Suppliers may submit an offer.
Procurement
Activities associated with sourcing goods and services valued over $100,000
excluding GST. This includes the establishment of standing offer, preferred Supplier
or pre-qualified supply arrangements.
Procurement Delegate
The person responsible for certifying that the process used to acquire goods and
services over the value of $100,000 complies with the department’s Purchasing and
Procurement policies and procedures.
Purchasing
Activities associated with buying goods and services valued up to $100,000,
excluding GST. This may also include buying goods and services valued over
$100,000 when purchased from a department or government supply arrangement or
contract.
Purchasing Delegate
The person responsible for certifying that the process of ordering and receiving goods
and services up to the value of $100,000 (excluding GST) complies with the
department’s Purchasing and Procurement policies and procedures. This may also
include ordering and receiving goods and services valued over $100,000 when
purchased from a department or government supply arrangement or contract.
Queensland Government
Body
Any of:
•
a body corporate or an unincorporated body established or constituted for a public
purpose by the State of Queensland legislation, or an instrument made under that
legislation (including a local authority);
•
a body established by the State of Queensland through the Governor or a
Minister; or
•
an incorporated or unincorporated body over which the State of Queensland
exercises control.
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Department of Education and Training – Purchasing and Procurement Instructions
Term
Definition
Queensland Procurement
Policy
The government’s overarching policy for the procurement of goods and services,
including construction.
Request for
quote/quotation
Documentation issued by the department inviting offers/quotes for the provision of
Goods and/or Services. Also see ‘Invitation to Offer’.
Selective offer process
A procurement method where Suppliers that have met pre-established criteria are
invited to offer.
Significant procurement
Includes goods, services and capital projects identified by the department as
being high expenditure and/or for which there is a high degree of business risk.
Small and medium
enterprise
An Australian or New Zealand firm employing less than 200 people.
Specification
The statement of requirement and defines what the purchaser wants to buy and
consequently, what the Supplier is required to provide.
Standing offer
arrangement
An arrangement established between the department and the successful Supplier
(including without limitation a standing offer arrangement, a register of pre-qualified
Suppliers, panel arrangement or preferred Supplier arrangement).
Supplier
An enterprise known to be capable of supplying required goods and/or services. It
includes manufacturers, stockists, resellers, merchants, distributors, consultants and
contractors.
S.W.O.T. Analysis
An analysis of Strengths, Weaknesses, Opportunities and Threats
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