Commercial Services
Procurement Processes
This document has been designed to assist you in your procurement requirements. Please read through the
document carefully to ensure that you choose the correct procurement process.
Contents
Contents .......................................................................................................................................................... 2
Procurement Process ....................................................................................................................................... 3
Tendering Process ............................................................................................................................................... 4
Procurement Plan ................................................................................................................................................ 5
Document Creation ............................................................................................................................................. 5
Approval Process for Budgeted Engagement Procurement Strategies ............................................................. 6
Professional Consultants and/or Independent Contractors ................................................................................ 6
Capital and Operational Expenditure .................................................................................................................. 7
Exemption from Tender/Quotation Process .................................................................................................... 8
Background .......................................................................................................................................................... 8
How to Obtain an Exemption .............................................................................................................................. 8
Competitive Bid Summary and Justification Process ........................................................................................ 9
How to Obtain a Competitive Bid Summary and Justification ............................................................................ 9
Tender Process Flowchart .............................................................................................................................. 10
Procurement Thresholds................................................................................................................................ 11
Contact Information ...................................................................................................................................... 12
Page 2 of 13
Procurement Process
The following details the Procurement Process for all purchases that have a total value greater than $1,000.
The University’s Procurement Policy includes procurement thresholds. These thresholds determine the
method or route of procurement (refer to Procurement Thresholds)
Procurement Thresholds
Contract Type
Contract Value
Procedure
Low quote
Under $10,000
Two Verbal quotes
Lower value quotes / small lots
$ 10,000 - $20,000
Three written quotes
Low - Medium
$20,000 – $150,000
Minimum of three written quotes /
formal quotation process
High
$150,000+
Formal tender process
Quotations should reflect details of total cost i.e. freight, installation, training and any discounts if relevant and
be GST Exclusive.
It may be appropriate to confirm verbal quotations in writing.
When three suppliers are able to provide quotes (Low-Medium Contract Type) and the purchaser is going to
seek supply from the proponent offering the best value for money, the purchaser completes a Competitive Bid
Summary and Justification and sends to Commercial Services for approval. The purchaser will be notified of
the outcome of the Competitive Bid Summary and Justification once the review has been completed. If the
Competitive Bid Summary and Justification has been approved you will be provided a Competitive Bid (CB)
number which you are required to enter into the relevant field in TechOne when raising your Purchase Order.
(See Competitive Bid Summary and Justification Process)
When you are unable to obtain the required number of quotes for the products/services that you are seeking
to procure, or that you require an exemption from the tendering process; you must complete an Exemption
from Tender/Quotation Application and send to Commercial Services for approval.
The purchaser will be notified of the outcome of the application once the review has been completed. If the
Exemption from Tender/Quotation Application has been approved you will be provided an Exemption
Application (EA) number which you are required to enter into the relevant field in TechOne when raising your
Purchase Order.
(See Exemption from Tender/Quotation Process)
This process must be completed before the product/services are engaged.
Retrospective exemptions will not be granted.
Page 3 of 13
Tendering Process
The following details the Procurement Process for all purchases that have a total value greater than $150,000.
For a detailed process step and indicative timeframes refer to Tendering Flowchart.
Is the Procurement Total Spend:
More than $150,000
Yes
Is there more than
1 Supplier?
Purchaser contacts
Commercial Services
to start the Tender
Process
Yes
No
Strategic
Sourcing Plan
Document
Creation
See the appropriate
Procurement Process
Tender Close
Tender Released
No
Tender
Evaluation
Supply Chain
Clarity
Tender Process
Start
Negotiation
Tender Process
Complete
Formal Agreement
Finalised
Notification of
Exemption Application
(EA) approval and
Exemption Number
sent to purchaser
Purchaser completes
a Exemption from
Tender/Quotation
Application
Yes
Purchaser arranges
for a credit
application to be
completed
Recommendation
made to delegated
authority
Yes
Is Purchase
Approved?
Purchaser raises a
TechOne Purchase
Requisition
No
Formal Agreement
Finalised
Is Justification
Approved?
No
Process
End
Commercial Services develops a procurement strategy for all Tender related processes to ensure that the
University acts within the approved Procurement Policy and subsequential approved Procedures.
As per The University of Newcastle Tender Procedure:

A competitive tender process will be conducted for the procurement of all goods and services valued
at over $150,000 (GST exclusive) or any procurement which is assessed as presenting a significant risk
to the University.

Procurement of goods and services cannot be split into parts or instalments to fall below the tender
threshold value.

The University uses a variety of approaches to tendering, sometimes in a staged process, and the
most appropriate will be determined as part of the procurement strategy according to the nature of
the specific procurement.
Consideration will be given to the following:
o
o
Call for Registration (CFR);
an approach to market used by the University to seek details about potential suppliers
of a good or service.
Expression of Interest (EOI);
used primarily to determine the market's ability or desire to meet the University's
procurement need following which the University may need to collect additional
information to make procurement decisions. An EOI is not an invitation to bid, is not
Page 4 of 13
o
o
o
o
binding on either party and is usually followed by a selective Request for Tender based
on a more detailed specification.
Request for Information (RFI);
commonly used on major procurements particularly if the University's requirements
could potentially be met through several alternate means. A RFI is not an invitation to
bid, is not binding on either party and in some circumstances may be followed by a
selective RFT, RFP or RFQ.
Request for Quotation (RFQ);
used when detailed specifications of a good or service are known and competitive bids
are to be evaluated mainly on price.
Request for Proposal (RFP);
used to directly purchase goods or services when the University clearly understands its
business needs but does not have defined details of the solution. This approach is often
used for the procurement of professional services or as part of information and
communication technology projects.
and
Request for Tender (RFT).
used when the University is seeking potential suppliers for a scope of work that has
been designed and specified in detail. A RFT is often used for building and construction
works and evaluation is based on price and a range of technical factors.
Procurement Plan
The Procurement Plan enables Commercial Services to understand the requirements of the requested
procurement and progress the project through the stages of the Tender Process.
The Commercial Relationship Manager (CRM) may request that you complete one of the following
Procurement Plan Information Sheets in order to gain a better understanding of the requirements of the
requested procurement.
Procurement Plan Information Sheet - Goods & Services
Procurement Plan Information Sheet – Information Technology (IT)
Procurement Plan Information Sheet – Capital Expenditure (CAPEX)
Document Creation
A Statement of Works will be required to be completed in order for the Tender Process to progress, if
required, Commercial Services can provide assistance with completing this process.
Before the commencement of the Tender Process the Commercial Relationship Manager (CRM) will use the
information gathered from the Procurement Plan Information Sheet and the Statement of Works to complete
the appropriate Strategic Procurement Plan:
Construction Strategic Procurement Plan
Strategic Procurement Plan
ICT Strategic Procurement Plan
Page 5 of 13
Approval Process for Budgeted Engagement Procurement Strategies
Professional Consultants and/or Independent Contractors
The following details the approved procurement strategy for the budgeted engagements relating to the
procurement of professional consultants and/or independent contractors:
Approve Procurement Strategy for Budgeted Engagement of Professional Consultants/Independent Contractors
Planning
Unit
Risk
Assessment
Strategy
Gather all
procurement
plan inputs
Needs
Analysis
Complete
Requirements
Shortform
Strategic
Procurement Plan
Approval
Workflow
Value is <$150K
What is
Value?
Low Risk, Value is <$30K
Value is >$150K
Yes
No
Completion of Procurement Plan Proforma
and specifications/scope of works
Strategic
Procurement
Plan
Commercial Services
Gather all
procurement
plan inputs
Commercial Services conducts Market
Analysis, identifies Evaluation Panel,
Procurement and Evaluation
Methodology.
Approval
Workflow
Low Risk, Value is <$30K- <$250K
Medium Risk Regardless of Value
High Risk Regardless of Value
Contract
Type
Contract
Type
Confirm
Funding
Confirm
Funding
Funding confirmed in Business
Case. If no Business Case,
Confirmed in Procurement Plan
Funding confirmed in Business
Case. If no Business Case,
Confirmed in Procurement Plan
Strategic
Procurement Plan
Delegated
Approval Authority
Strategic
Procurement Plan
Delegated
Approval Authority
Strategic
Procurement Plan
Delegated
Approval Authority
Executive Committee
Vice Chancellor
of Council
PVC/Director
Insurance
Requirements
AD
Commercial Services
Insurance
Requirements
DVC/CFO
Risk &
Assurance
Financial Services
Legal Unit
Extreme Risk Regardless of Value
Strategic
Procurement Plan
Delegated
Approval Authority
Strategic
Procurement Plan
Delegated
Approval Authority
Page 6 of 13
Capital and Operational Expenditure
The following details the approved procurement strategy for the budgeted engagements relating to the capital
and operational expenditure:
Approve Procurement Strategy for Budgeted Capital and Operational Expenditure
Strategy
Unit
Planning
Needs
Analysis
Complete
Requirements
Value is <$150K
What is
Value?
Follow
Quotation
Process
Refer to Procurement Policy,
Quotation Procedure and
Procurement Thresholds
Value is >$150K
Commercial Services
Completion of Procurement Plan Proforma
and specifications/scope of works
Gather all
procurement
Strategic
Procurement Plan
If value is <$250K?
plan inputs
If value is >$250K? - <$750K?
Approval
Workflow
Commercial Services conducts Market
Analysis, identifies Evaluation Panel,
Procurement and Evaluation
Methodology.
If value is >$750K? - <$1M?
If value is >$1M? - <$5M?
Contract
Type
Funding confirmed in Business
Case. If no Business Case,
Confirmed in Procurement Plan
Confirm
Funding
Insurance
Requirements
AD
Commercial Services
Strategic
Procurement Plan
Delegated
Approval Authority
DVC/CFO
Strategic
Procurement Plan
Delegated
Approval Authority
Vice Chancellor
Strategic
Procurement Plan
Delegated
Approval Authority
Chancellor or Deputy
Chancellor, and VC, and
CFO + Chair Finance
Committee, Chair SDC
Strategic
Procurement Plan
Delegated
Approval Authority
Executive Committee
of Council
PVC/Director
Risk &
Assurance
Financial
Services
Legal Unit
If value is >$5M?
Strategic
Procurement Plan
Delegated
Approval Authority
Page 7 of 13
Exemption from Tender/Quotation Process
The information that is required in the Exemption Application form is to ensure that the University complies
with the Government Information (Public Access) Act 2009.
These guidelines apply to exemptions from the requirement to go to open tender or quotation. For further
information regarding exemption from the University of Newcastle’s Procurement Policy and Guidelines,
please contact Commercial Services.
Background
The University is committed to:

encouraging open and effective competition between suppliers with the objective of obtaining value
for money; and

enhancing opportunities for business.
Exemptions from certain mandatory requirements contained in the Tendering and Quotation Guidelines may,
in appropriate circumstances, be granted by Commercial Services or other authorised delegates.
Specific exemptions that may be granted are:


exemption from the requirement to go to the second stage of multi-stage procurement;


exemption from the requirement to obtain three quotes or go to an open tender;
exemption from the requirement to select vehicles that comply with the mandated minimum
Greenhouse Ratings;
exemption from the requirement to use pre-qualified consultants or contractors; and
There may also be granted approval of an extension to a contract which is outside the terms of the original
contract provided the extension does not involve any substantial change to the scope of the original contract.
This will usually only occurs where the extension is required to enable a full procurement process to be
properly undertaken or where extraordinary circumstances justify the extension.
How to Obtain an Exemption
Prepare and forward an Exemption from Tender/Quotation Application to Commercial Services,
csforms@newcastle.edu.au detailing the procurement requirement and the reasons that an exemption from
the normal processes is required, attaching any supporting documentation.
Exemptions will only be granted in exceptional circumstances, where it can be demonstrated that an
exemption is in the best interest of the University and where the proposed purchase will clearly achieve the
best overall value for the money spent.
Retrospective exemptions will not be granted.
Page 8 of 13
Competitive Bid Summary and Justification Process
Justification will be sort if the quote selected is higher than that of other vendors. A Competitive Bid Summary
and Justification must be completed if the variance between the selected vendors quote and the lowest quote
is 15% in value (or $2,000).
These guidelines apply to the purchase of products/services greater than the value of $20,000 but less than
$150,000 where:
 three written quotes have been obtained and
 the purchase is being sought from the proponent that will provide the most value for money.
For further information regarding the University of Newcastle’s Procurement Policy and Guidelines, please
contact Commercial Services.
How to Obtain a Competitive Bid Summary and Justification
Prepare and forward a Competitive Bid Summary and Justification to Commercial Services,
csforms@newcastle.edu.au detailing the three vender’s quotations that the purchaser has sought and all other
details requested on the form.
Page 9 of 13
Tender Process Flowchart
Develop Procurement Strategy
User Intelligence Group Recruitment
Procurement / Contract Process
Project Start Up
Open Procedure
Restricted Procedure
Competitive Dialogue /
Negotiated Procedure
5 days
15 days
15 days
Start Up & Data Collection
Category Manager decides on
Tender, Renewal or Extension
Profiling the Commodity
Commodity Profile Summary
Assess Information
Opportunity Assessment Approval
Potential Delay for Senior Management Approval
Potential Change /
Validation Control
No
Proceed?
Commodity Strategy Development
Prepare EOI /
RFI Advert
Yes
See: Approve Procurement Strategy for Budgeted
Engagement of Professional Consultants/Independent
Contractors
See: Approve Procurement Strategy for Budgeted Capital
and Operational Expenditure
Potential Delay for Senior Management Approval
Supplier
Selection
Timelines
Analysis
Supplier Selection
Tendering
Tender Issue and Analysis
Develop Strategy
Issue EOI /
RFI Advert
Approval of Strategy
15 days
Potential Change /
Validation Control
Supplier Selection
(Where Approriate)
Prepare Tender
Package and Approve
Supplier Selection
10 days
10 days
Issue Tender
Issue Tender
20 days Normal
20 days Normal
Receipt and Opening of Tenders
Close Date for Receipt of Tenders
Tender Evaluation
Clarification and
Negotiation
Post Tender Clarification and Negotiation
Clarification
5 days
5 days
Tender Evaluation Report
Prepare Negotiation Strategy
Negotiation
Potential Delay for Senior Management Approval
Potential Change /
Validation Control
10 days
10 days
10 days
Award Decision
Contract Award and Debriefing
Sign Off
Potential Delay for Senior Management Approval
1 day
1 day
1 day
Award Contract
Letter of Award (if Required)
Debrief Unsuccessful
Candidates (if Required)
Contract Implementation Contract
and Communication
Award
Award Decision
Issue of Contract Award Notification
5 days
5 days
5 days
Draft Contract
Potential Delay for Senior Management Approval
Supplier Management Communication
Sign Off
Implemenatation and
Management of Contract
Monitoring / Review
Contract Implementation
Page 10 of 13
Procurement Thresholds
University Purchasing Thresholds – Process Flowchart
START
Is there an
existing Supply
Contract?
No
CREDIT
CARD
Is amount
>$1,000?
26 June 2012
Use supply
contract or contact
Commercial
Services
Yes
Excluding Travel and Entertainment
No
Payment by
University Credit
Card
Coding of
Purchase in
Spendvision
Approval via
Spendvision
Monthly Statement
supplied to
Financial Services
END
Yes
>=$1,000
but
<$10,000
Is amount
>=$1,000 but
<$10,000?
Yes
Is there more
than 1
Supplier?
>=$10,000
but
<$20,000
Is amount
>=$10,000 but
<$20,000?
Yes
Is there more
than 1
Supplier?
Is Justification
Approved?
Purchaser collects A
minimum of 3 written quotes
from suppliers
Yes
Purchaser raises a
TechOne Purchase
Requisition
Purchaser raises a
Creditor Application
Purchase completes a Tender/
Quotation Exemption Application form
where 2 quotes cannot be obtained
No
No
Purchaser collects a
minimum of 2 verbal
quotes
Yes
Quotes
held in
department
Yes
No
Purchaser raises a
TechOne Purchase
Requisition
Purchaser raises a
Creditor Application
Yes
No
Is amount
>=$20,000 but
<$150,000?
Purchase completes a Tender/
Quotation Exemption Application form
where 3 quotes cannot be obtained
No
Yes
Is there more
than 1 Supplier
in the market?
>=$20,000
but
<$150,000
Yes
Purchaser collects A
minimum of 3 written
Quotes from Suppliers
Is Justification
Approved?
No
Purchaser completes a Competitive Bid
Summary and forwards to Commercial Services
for registration/approval as appropriate
Purchaser raises a
Creditor Application
Purchaser raises a
TechOne Purchase
Requisition
Yes
No
No
Purchase completes a
Tender/Quotation Exemption
Application form where 3
quotes cannot be obtained
Is Justification
Approved?
No
END
Is amount
>=$150,000?
Yes
Is there more
than 1 Supplier
in the market?
Purchaser contacts
Commercial Services to
start the Tender Process
Yes
Tender Process
completed
Recommendation
made to delegated
authority
Is Purchase
approved?
Yes
>=$150,000
TENDER
PROCESS
No
END
Purchase completes a
Tender/Quotation Exemption
Application form where 3
quotes cannot be obtained
No
Is Justification
Approved?
Yes
Formal
Agreement
finalised
Purchaser raises
Creditor
Application
Purchaser raises
TechOne Purchase
Requisition
No
Contact Information
Craig Lehman- Phone: (02) 4921 8839, Craig.Lehman@newcastle.edu.au
Associate Director, Commercial Services
Beth McDonald- Phone (02) 4921 6733, Beth.Mcdonald@newcastle.edu.au
Corporate Services
Advertising/Marketing
Animal Consumables
Banking
Bottle/Liquid Gas
Catering
Chemical/Biological
Consultants
Courier/Freight
Electricity
Existing Employee Related
Expenses
External Print/Copy
Gas
Health and Safety
Insurance
Laboratory Materials
Legal Services
Library Services
Property Leases/Hire
Recruitment
Security Services
Telecommunications/Network
Temp Labour
Training
Lachlan Reedman- Phone: (02) 4921 5349, Lachlan.Reedman@newcastle.edu.au
Capital Expenditure- Facilities Improvement, Research
Capital Expenditure (CAPEX) - All Capital expenditure related to University CAPEX Projects including purchases
of new equipment, construction, and building refurbishment
Building Services
Furniture and Fittings
Facilities
Research Equipment
Jeanne Clarke- Phone: (02) 4921 15337, Jeanne.Clarke@newcastle.edu.au
Information and Communication Technology (ICT)
Minor Equipment
Internal Print/Copy
IT Hardware Leasing
IT Hardware Maintenance
IT Software
IT POW (Capital)
Audio and Visual
Mark Grant- Phone: (02) 4921 18619, Mark.Grant@newcastle.edu.au
Facilities Management
Building Services
Electrical Services
Fire Services
Landscape Services
Mechanical Services
Plumbing Services
Waste Management
Grounds Maintenance
Page 13 of 13