Composition and Role of a Tender Panel Procedure (Australia)

Parent Policy

Procurement Policy

This document covers the procedure to be followed when forming a Tender Panel required developing Tender documentation and assessing Bids from Suppliers in response to Tenders distributed by Monash University.

In engaging with suppliers for the supply of goods and services, University officers have an obligation to ensure that all dealings are conducted in an honest, fair, transparent manner, with due consideration of environmental and social responsibilities that delivers the best value for money outcome whilst at the same time protecting the reputation of the University. To this end, good procurement principles must be applied in order to ensure that probity is upheld at all times.

The fundamental principles that must be applied are therefore based on a competitive process that gives appropriate suppliers an opportunity to quote and delivers a value for money outcome to the University. A competitive process usually relies on the Buyer issuing a Tender (RFQ, RFT or RFP) seeking competitive bids from a number, usually three or more, Suppliers.

Monash University policy requires that a competitive process be applied, as appropriate, when seeking goods/services in excess of the Quotation Threshold Value or the higher Tender Threshold Value, as appropriate. For services requiring the engagement of a contractor or consultant the Contractor Threshold Value is applicable. See threshold values in the parent policy document.

The Tender Panel has the important role of determining which Bid provides the best value for money outcome for the University and is charged with making a recommendation on which Supplier should be engaged and therefore awarded a contract and/or by subsequently be issued a Purchase Order to supply the goods/services.

Definition of terms

Advertised Open Tender: A Tender that is advertised in a Newspaper inviting Bids from all prospective Suppliers as well as being broadcast via the Tenderlink portals. (See also – Closed Tender and Open Tender).
Authorising Officer: A University Officer who has access rights to the University’s ERP system (SAP) with a set level of financial delegation and the authority to approve Purchase Orders. The authority to approve a Purchase Order may be for a specific Cost Centre or range of Cost Centres, as appropriate.
Best Value for Money Outcome (BVMO): The outcome that gives the best value for money for the University. Not necessarily the lowest price or the result that just delivers the lowest cost for a department or Cost Centre. In many instances the selection of a Supplier should take into account other considerations such as the lowest overall Total Cost of Ownership (TCO) giving due consideration the total cost to the University whilst we own the products and covers other factors not exclusive to purchase price.
Bid: A submission by a Supplier in response to an RFQ, RFT or RFQ. Bid can mean the same as a Response or Quotation/Quote.
Buyer: The person or organisation that seeks to acquire goods and/or services from a Supplier. In the context of this document the Buyer is Monash University (the University) or an affiliated organisation bound by the University’s regulations.
Closed Tender: A Tender where the number of Suppliers invited to Bid, is limited to a small, select number that are deemed to be able to meet the Tender requirements.(See also - Open Tender and Advertised Open Tender).
Closing Date / Time: The date and time by which a Supplier must formally lodge their Bid in the manner prescribed in an RFQ, RFT or RFP. When distribution is via the Tenderlink portal, then lodgement is usually effected by uploading to the Locked Tender box facilitated by Tenderlink and the Closing Date / Time is designated on set-up of the Tender.
Contractor Threshold Value: The level (e.g. monetary value) prescribed by the University whereby a University Buyer seeking to engage the services of a contractor or consultant must issue an RFT or RFP seeking at least three competitive Bids from Suppliers for the proposed supply of services.
Evaluation Criteria: A set of weighted criteria by which all Suppliers’ responses will be assessed in order to determine the Bid that provides the best value for money outcome for the University. The Evaluation Criteria should be developed by the Tender Panel and applied fairly to analyse all Supplier Bids.
Expression of Interest (EOI): Similar to an RFI but a document that seeks preliminary information and interest from potential suppliers on their capability and willingness to bid on providing goods/services to the buyer. An EOI will often be followed by an RFT or RFP.
Locked Tender Box: For Tenderlink, an electronic locked box, accessible with a password that allows access to downloadable (zipped-up) files to a designated directory/ file. The password is emailed to the designated officer when the Closing Date / Time have been reached.
Minimum Tender Open Time: The minimum time, expressed in Business Days or Calendar Days that a Tender must be provided to prospective Suppliers in order for them to make a Bid. See also - Tender Open Time.
Monash Procurement / Procurement: Monash University’s Procurement unit that co-ordinates the University’s strategic procurement activities, organises major supply agreements for common use goods and acts as an advisory body for procurement related matters.
On-going Supply Contract: A contract or agreement between the Buyer and Supplier that covers the on-going supply of goods/services over a nominated period. Individual purchases can be made against an On-going Supply Contract by either setting up standing Purchase Orders that “call-off” the Contract or by raising individual Purchase Orders that reference prices contained in the Contract. An On-going Supply Contract is usually arranged between “Endorsed Suppliers” for the supply of common use goods by all Cost Centres.
Open Tender: A Tender that allows a wide range of Suppliers to Bid without restriction. In the context of using Tenderlink, an Open Tender is distributed to all the Suppliers registered in the Tenderlink system that match the profile for the good or service being sought. See also – Closed Tender and Advertised Open Tender.
Probity Auditor: An auditor, appointed to review the deliberations of a Tender Panel to ensure that all processes are conducted in a transparent, honest, fair and competitive manner.
Purchase Order: A formal document initiated by a Buyer and forwarded to a Supplier normally used to form the basis of a one-off contract between the parties for the supply of Goods and/or services to the Buyer.
Quotation / Quote: A submission from a Supplier that specifies the cost of supplying a good or service. Similar to a Bid.

Establishing a Tender Panel

A Tender Panel should be established for Tenders where the goods and/or services required is anticipated to exceed the Tender Threshold Value and the requirement is for an RFT or RFP to be distributed to prospective Suppliers.

1. The Tender Panel must be made up of at least three persons for Tenders less than $1M or five persons for Tenders in excess of $1M. Where the requirement is to have a minimum of five persons then at least one member must be independent and drawn from a faculty/division not directly associated with the requirement for the goods/services sought.

2. The Panel members (usually University Officers) must have adequate technical, operational and environmental knowledge and background about the goods/services required such that they are capable of providing meaningful input to the Tender process. The number of members can be greater than three but should not, in normal circumstances, be greater than seven persons.

3. The Tender Panel must be established prior to the release of Tender and have input into the details of the RFT or RFP.

Responsibility

Head of Department, Dean, Divisional Director, Vice-President, Procurement Director, as appropriate.

The Role of a Tender Panel

The Tender Panel should:

1. Provide input to, and approve the Tender documentation, prior to release to prospective Suppliers.
2. Prior to release of Tender documentation to Suppliers, establish the Evaluation Criteria that will be used to assess Bids from Suppliers. It is usual that an outline of the evaluation process be listed in the Tender documentation so that a prospective Supplier is able to address the important factors in their Bid.
3. Determine whether the Tender will be released as an Open, Advertised Open or Closed Tender. If a Closed Tender then the Panel should determine which Suppliers will be invited to Bid.
4. Following the receipt of all compliant Bids, meet as a group to provide critical input to the overall assessment/evaluation of all Bids in accord with the pre-determined evaluation criteria. The assessment can be developed by one member of the Panel and presented to all members for critique and approval.
5. Make a final recommendation and sign-off on the selection of the Supplier that has provided the Bid that delivers the best value for money outcome to the University. This is to be formalised by all Tender Panel members signing the Quotation/Tender Summary Form.

Responsibility

Members of a Tender Panel

Duties of Tender Panel Members

University Officers and other persons approved by the University, who are selected to serve on a Tender Panel:

1. Must have adequate technical, operational and environmental knowledge and background about the goods/services required such that they are capable of providing meaningful input to the Tender process.
2. Must not have any formal association with a potential Supplier that might compromise the integrity of the selection process. If a Conflict of Interest exists (e.g. being a Director or holding shares in a company or organisation that is bidding on the Tender, etc.) then the Officer must immediately declare the Conflict of Interest and remove themself from the selection process. The Chair of a Tender Panel should ensure that all members of the Panel declare any conflicts prior to the commencement of the evaluation process.
3. Must not accept any inducement, gift or hospitality from a potential Supplier that might compromise the integrity of the selection process.
4. Must act objectively and fairly throughout the Tender process to ensure that all Suppliers are given an equal chance to succeed with their Bid and that the integrity of the process is upheld.
5. Must hold, information received as part of a Supplier's Bid in the strictest confidence and not release this information outside of the Tender Panel.
6. Must not divulge information on the deliberations and decisions of the Tender Panel until a formal recommendation has been approved by the appropriate officer or body (e.g. Head of Department, Dean, Divisional Director, Vice-President or Procurement Board, as appropriate) and the successful Supplier has been formally notified.

Responsibility

Members of a Tender Panel

Selection of the Chair of the Tender Panel

1. The Chair of a Tender Panel should be appointed by the Head of Department, Dean, Divisional Director, Vice-President or Procurement Director, as appropriate for the goods/services required.
2. The Officer making the appointment should be satisfied that the appointed person has the expertise and integrity to lead the Tender Panel.

Responsibility

Head of Department, Dean, Divisional Director, Vice-President, Procurement Director, as appropriate.

Duties of the Chair of the Tender Panel

The Chair of a Tender Panel should:

1. Select other members of the Tender Panel (refer minimum number of persons required, including the Chair in the following Table).
2. Appoint a Probity Auditor, if required.
3. Ensure that all selected members have adequate technical, environmental and operational knowledge and background about the goods/services required to be able to provide meaningful input to the Tender process.
4. Ensure that all members of the Panel declare any conflicts prior to the commencement of the evaluation process.
5. Arrange for the development and approval by Tender Panel members, of all relevant Tender documentation prior to release to prospective Suppliers.
6. Ensure that the evaluation process is conducted in an objective and fair manner.
7. Develop and forward the recommendations of the Tender Panel to the appropriate officer or body (e.g. Head of Department, Dean, Divisional Director, Vice-President or Procurement Board, as appropriate. This is to be formalised by ensuring that all Tender Panel members sign the Quotation/Tender Summary Form.
8. Ensure an accurate record is kept of the Tender Panel's deliberations for audit purposes.
9. If required, once approval has been provided, inform the successful Supplier of the outcome of the Tender process.
10. If required, once formal approval has been granted, inform unsuccessful Suppliers of the outcome of the Tender process.

Responsibility

Chair of Tender Panel

Appointment of a Probity Auditor

1. A Probity Auditor must be assigned to a Tender Panel (in addition to the selected Panel members) for:
   - Tenders for strategic purchases in excess of $200,000 where it is deemed that a Probity Auditor would be required to ensure that the conduct and probity of the selection process is upheld.
   - All on-going Supply contracts in excess of $200,000, over the term of the contract or over a three-year period if the term is expected to exceed three years.
   - All Tenders for goods / services $1M

1. The Probity Auditor can be a University auditor (if resources permit the assignment of an internal auditor) or an externally appointed auditor.
2. The cost, if any, of appointing a Probity Auditor must be borne by the Cost Centre that seeks to acquire the goods / services requiring a Tender Panel to be formed.

At the conclusion of the Tender, the Probity Auditor must prepare a report that is to be forwarded to the University's Audit & Risk Management Unit.

Responsibility

Chair of Tender Panel

Quotation and Tender Threshold Values

Responsibility

Chair of Tender Panel

Other Tendering requirements

Responsibility

Chair of Tender Panel

Contact Person: Finance Policy