Supplying goods and services to the Northern Territory Government a guide for Business Supplying goods and services to the Northern Territory Government A guide for business This guide is designed to provide guidance to new and current tenderers on how to bid for Northern Territory Government supplies. It will give you an understanding of how the Northern Territory Government purchases its goods and services and assist you to enhance your responses to requests for quotes or tenders. Whether you are a small or large business, opportunities may exist for you to supply goods and/or services to the Northern Territory Government. Just as in any market place, in order to successfully bid for Northern Territory Government work, it is essential that you: Know your customer Build relationships Understand the process under which the customer procures supplies Look for opportunities and prepare to bid Compete to win Know your customer The Northern Territory Government is made up of more than 30 agencies and spends more than $3 billion annually on goods and services. These supplies can vary from one-off purchases to multi-million dollar projects. Each agency is responsible for determining its purchasing requirements and where requirements are spread across agencies, one or more may work together to procure supplies. Identify the right customer Your business should develop an understanding of the role of each agency as a potential buyer and its business needs to enable you to target your goods and services to the relevant agencies. Information on Agencies can be found on their websites which can be accessed through the central A-Z Government listing. These websites will give you access to general information about each Agency and its upcoming projects and future plans through Annual Reports and other publications. Learn about potential customers through Agency websites. Websites can be found on the A-Z Government listing at http://www.nt.gov.au Build a relationship Whether you want to supply goods and services to the Northern Territory Government through the public and tender process or through a direct arrangement it is important to establish a relationship with the customer agency. Public tenders and quotes are not the only process for procuring goods and services. Agencies will purchase goods and services through direct purchases, select quotes and select tenders. Agencies will conduct market research to determine appropriate supplies and price estimates for their goods and services, you should make sure they are aware of your capabilities and provide them with the information required to include you in their purchasing decisions. Northern Territory Government agencies need to know: What goods or services you supply What sets you apart from your competitors Department of Business 2 Supplying goods and services to the Northern Territory Government Why the Northern Territory Government should purchase from you Attend events and functions organised by industry associations and the Northern Territory Government to promote your business direct to agencies. These networking functions are a key strategy for businesses to gain recognition in the market place. Make agencies aware of your capabilities. Provide the information required to include you their purchasing decisions. Need help? The Department of Business offers a wide range of services and information to help businesses start, develop, grow and prosper. There is also a range of business improvement workshops which include topics such as ‘Tendering Essentials’. Find out more on Government assistance to businesses including workshops and events on the Department of Business website: http://www.dob.nt.gov.au Know the process While agencies are responsible for their procurement activities they must work within the Northern Territory Government Procurement Framework. Information on the Procurement Framework can be found on the Department of Business website: http://www.dob.nt.gov.au/business/tenders-contracts/legislative_framework Procurement methods The Northern Territory Government may purchase goods and services using a number of procurement methods, the most common methods are set out below. Threshold Procurement method Tier 1 Agencies may approach businesses directly, without formal documentation, to purchase readily available goods or services. If approached in this manner, businesses will not be required to provide a written quote. This process would usually be used for ‘off the shelf’ purchases. Less than $15 000 Procurement of more complex supplies, for example where the goods or services must be described or special terms agreed, agencies will obtain a written quote from one or more suppliers. Tier 2 $15 000 but less than $100 000 Agencies may invite three or more identified suppliers to submit a bid in response to a simplified request for quotation. All responses are evaluated against the specified criteria. Preferred respondent will be awarded the quote through the issue of a purchase order. Department of Business 3 Supplying goods and services to the Northern Territory Government Threshold Procurement method Tier 3 Agencies may invite all suppliers to submit a bid in response to a request for quotation published on the quotations and tenders online site. $100 000 but less than $500 000 Where there are limited suppliers, or the nature of the supply requires confidentiality, agencies may invite one or more identified suppliers to submit a bid in response to a request for quotation. Where specified in the request for quotation, CAL accreditation will be required. CAL accreditation upgrades will be permitted within 7 days of the closing date. All responses are evaluated against the specified criteria. Preferred respondent is awarded the quote through a notice of acceptance. Tier 4 $500 000 but less than $2 million Future Tender Opportunities will be listed on the quotations and tenders online site. Agencies will invite all suppliers to submit a bid in response to a request for tender. Where there are limited suppliers, or the nature of the supply requires confidentiality, agencies may invite one or more identified suppliers to submit a bid in response to a request for tender. Where specified in the request for tender, CAL accreditation will be required. CAL accreditation upgrade permitted within 14 days of the closing date. All responses are evaluated against the specified criteria. Preferred tenderer is awarded the tender through a notice of acceptance. Department of Business 4 Supplying goods and services to the Northern Territory Government Threshold Procurement method Tier 5 Future Tender Opportunities will be listed on the quotations and tenders online service. $2 million and over Agencies will invite all suppliers to submit a bid in response to a request for tender. Where there are limited suppliers, or the nature of the supply requires confidentiality, agencies may invite one or more identified suppliers to submit a bid in response to a request for tender. Where specified in the request for tender, CAL accreditation will be required. CAL accreditation upgrade permitted within 14 days of tender close. For projects over $5M tenderers will be requested to provide information to enable the agencies to assess its proposed industry participation commitments. An Industry Participation Plan will then be entered into with the preferred tenderer. All responses are evaluated against the specified criteria. Preferred tenderer is awarded the tender through a notice of acceptance. While these procurement methods may be specified for a procurement tier, an agency may use a different (and usually higher level) procurement method where the procurement activity justifies a different method. For example, while a Tier 1 purchase may occur without requiring a formal quote, agencies may choose to obtain multiple quotes before committing to a purchase, or the nature of a Tier 3 procurement activity may justify the use of a public tender process to encourage greater involvement. Value for money The Northern Territory Government seeks to achieve best value for money outcomes that meet government policies rather than the lowest price. To obtain best value for money in procurement, agencies will consider the following criterion during their assessments: Price Past Performance Local Development and Value Add Timeliness Capacity Innovation Supply specific requirements Weightings are applied to each criterion by the Agency to a total 100 points and must include the mandatory 20% weighting for Local Development and Value Add. Weightings are published as part of the quote and tender documents for Tiers 3, 4 and 5 procurement activities. Department of Business 5 Supplying goods and services to the Northern Territory Government Price will have an explicit weighting nominated by the agency and will be tailored to reflect the specific requirements of the goods, services or works being procured. Value for money is more than price. Address all criteria and distinguish yourself from your competitors. Local Development and Value Adding The Northern Territory Government actively supports the enhancement of the capability and competitiveness of business and industry in the Northern Territory through Government procurement activities. All Northern Territory Government procurement activities must include the Local Development and Value Adding criteria with a minimum weighting of 20%. This criterion is not about giving Territory business a price advantage. Tenderers will be assessed based on their response to the Local Development and Value Adding questions contained in the Response Schedules to each request for quote or tender. Local Development and Value Adding recognises businesses with a demonstrated commitment to the Northern Territory and a commitment to future developments. The requirements for the Local Development and Value Adding will differ for each procurement activity, taking into consideration factors such as: relevant government policies the location of the procurement potential employment and training opportunities potential subcontracting and supply chain opportunities community priorities potential for innovation Each request for quote or tender will require Tenderers to answer questions relating to Local Development and Value Adding which is relevant to the specific procurement activity. These questions may differ between procurements and Tenderers should provide a response relevant to each request for quote or tender. Be prepared To ensure that you are capable of bidding for Northern Territory Government supplies you should: Register with the Quotations and Tenders Online service Register with Industry Capability Network Northern Territory Obtain or update appropriate accreditation, licensing and training Build Business capability The Northern Territory Government’s online procurement site publishes opportunities for future tenders, open quotes and tenders, outcomes of those already closed, provides information on the procurement processes and provides contacts for further information and assistance. Register on line and review your details regularly. The QTOL system allows businesses to record and pre-fill standard business information, making preparation of quotations and tenders less repetitive, saving your business time. In order to download quotations and tender documents from the QTOL website you need to register your business details. Department of Business 6 Supplying goods and services to the Northern Territory Government If you have any problems registering or updating your details further information can be found on the Department of Business website or you can contact the Tenders Manager. Phone: Email: Website: +61 8 8999 1937 CAPSAssist.NTG@nt.gov.au http://www.dob.nt.gov Register with the Industry Capability Network Northern Territory The Industry Capability Network Northern Territory (ICN-NT) is part of a national network supporting business and can save you valuable time and money in the procurement process. ICN-NT assists buyers find suppliers and service providers that are best placed to meet the requirements of projects in the Northern Territory, interstate and in New Zealand. Registration with the ICN-NT will assist with the identification of your business to agencies that are seeking potential suppliers. The ICN-NT is used for agency market testing to source suppliers with local capabilities. Registration is free and easy, for more information contact ICN-NT. Phone: Email: Website: +61 8 8922 9422 info@icnnt.org.au http://www.icnnt.org.au Obtain accreditation and licences Make sure you are aware of the accreditation and licences required to bid for Northern Territory Government supplies. Depending on the types of supplies your business bids for this may include: Working with Children Clearance Notice (Ochre card) security clearances Contractor Accreditation Limited certification industry specific licences If the request for quote or tender documents are unclear as to the specific licences or accreditation required, contact the person nominated in the document to clarify your obligations. You can also contact the Territory Business Centre for business information and licence applications. Phone: Email: Website: 1800 193 111 territory.businesscentre@nt.gov.au http://www.dob.nt.gov.au Contractor Accreditation Limited Contractor Accreditation Limited (CAL) provides a process of certification for contractors looking to become CAL accredited and maintains a register of existing accredited businesses. CAL also provides recognition under the National Prequalification System for Non-Residential Building. The CAL register is easily accessible by the community at no charge. Project Developers also utilise CAL when seeking accredited contractors. CAL accreditation is a mandatory requirement for some Northern Territory Government supplies. Department of Business 7 Supplying goods and services to the Northern Territory Government The CAL accreditation process is conducted in the strictest confidence, takes 4-6 weeks to complete and is subject to annual fees. Phone: Web: +61 8 8922 4600 http://www.accreditation.com.au Partnering and subcontracting Even if you do not bid for Northern Territory Government supplies directly, you may become involved in Government procurement through partnering or subcontracting arrangements. Building relationships with businesses that already supply to the Northern Territory Government is a good opportunity to build your internal capabilities and become accustomed to supplying the Government. Finding opportunities All public quotes and tenders are listed Northern Territory Government’s online procurement portal, Quotations and Tenders Online (QTOL). QTOL also publishes opportunities for future tenders and details of awarded tenders. QTOL can be accessed at https://tendersonline2.nt.gov.au or through links on the Department of Business website (http://www.dob.nt.gov) or download the App from iTunes, Google Play or Windows store. Agencies will also release information regarding future projects in their Annual Reports and on their websites. Compete to win As in all aspects of being in business it is essential to present your case in the most professional manner ensuring that your submission – be it a response to a quote or tender – has a reasonable chance of success. While there are no guarantees of winning Northern Territory Government work, here are a few tips to increase your chances of success. Target the best opportunities The Northern Territory Government issues more than 700 tenders and 1300 quotes a year. Identify the opportunities that are best suited to your business and spend time developing your responses. Understand the requirements Read the documents carefully. Make sure you can comply with all requirements and timeframes. If you are uncertain about any part of the documents, clarify with the procurement contact nominated in the document. Attend briefings and site visits While you may think you know the supplies or site requirements, attend any briefings or visits that are offered. These give you the opportunity to ask questions and hear about the supplies first hand from the agency. Be clear and to the point Agencies will assess your response based on the questions asked in the Response Schedule (and any additional documents that are specifically requested). Be sure that you have answered the questions clearly and only provide additional information which assists in your bid. Are there mandatory requirements Make sure you are aware of any mandatory requirements, this may include licenses and accreditation, submission of certain documents or the provision of particular information. Department of Business 8 Supplying goods and services to the Northern Territory Government Demonstrate value for money Make sure you have addressed the criteria and considered the weightings allocated by the agency. While price is important, so too is your capacity to complete the works within timeframes requested, the quality of the goods or service and your past performance. Allow sufficient time to submit your bid If you are using QTOL, and depending on your browser, the system traffic and the size of your response, you may need time to upload and check your response documents before submitting your bid. Your bid has not been submitted until all required documents have been received in full. If you don’t win An unsuccessful tender process is an opportunity to learn and improve for your next opportunity when it emerges. Agencies will offer debriefs to unsucessful tenderers. Here you will be given information regarding your response and where it could have been improved. Learn from unsuccessful tenders. Speak to the agency and seek feedback or a debrief. Debriefs will focus on strengths and weaknesses of your submission, what were the gaps in the information provided and where there was a lack of detail so your future bids will better meet the requirements. Debriefs will not discuss other tender response. Concerns or complaints If you are unsuccessful in a quote or tender, and if, after contacting the Agency you have concerns with the procurement process, you can contact Procurement Liaison. Procurement Liaison aims to assist business to achieve a greater understanding of Northern Territory Government procurement procedures and requirements, and improve their capability to win government business. Phone: Email: Department of Business +61 8 8999 5212 procurement.liaison@nt.gov.au 9 Supplying goods and services to the Northern Territory Government A typical procurement process View detailed description of flowchart Department of Business 10 Supplying goods and services to the Northern Territory Government Contacts Contract and Procurement Services (CAPS) Phone: +61 8 8999 1937 Email: CAPSAssist.NTG@nt.gov.au Website: http://www.dob.nt.gov Industry Capability Network NT (ICN NT) Phone: +61 8 8922 9422 Email: info@icnnt.org.au Website: http://www.icnnt.org.au Territory Business Centre Phone: 1800 193 111 Email: territory.businesscentre@nt.gov.au Website: http://www.dob.nt.gov.au Contractor Accreditation Limited (CAL) Phone: +61 8 8922 4600 Web: http://www.accreditation.com.au Procurement Liaison Phone: +61 8 8999 5212 Email: procurement.liaison@nt.gov.au Acronyms CAPS CAL ICN-NT QTOL Department of Business Contract and Procurement Services Contractor Accreditation Limited Industry Capability Network Northern Territory Quotations and Tenders Online 11 Supplying goods and services to the Northern Territory Government Notes: Department of Business 12 Supplying goods and services to the Northern Territory Government Appendix Detailed description for flowchart: A typical procurement process Agency activities Agency Step 1 – Agency determines a need of goods or services Agency Step 2 – Agency procurement planning Select procurement method Determine requirements Conduct market testing / consult with Industry Capability Network Agency Step 3 – Approach to market Publish request for quote or tender document Agency Step 4 – Agency assessment Conduct initial admissibility checks Evaluate responses Seek clarifications Agency Step 5 - Award quote or tender Agency Step 6 - Debrief unsuccessful tenderers Agency Step 7 - Contract management with successful tenderers Your role Your role Step 1 - Be prepared Register for Quotations and Tenders Online Register with the Industry Capability Network Gain accreditation and training Understand the Government’s Procurement process Look for opportunities Your role Step 2 – Prepare your response Prepare a competitive bid Respond to all questions Attend all briefings and inspections Ask questions if unsure Allow enough time to submit In response to Agency Step 3 Your role Step 3 - Respond to clarification questions In response to Agency Step 4 Return to flowchart Department of Business 13