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Tenders & Quotations (Aust.)Parent PolicyIn 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 a process that 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. The Bid that provides the best value for money outcome should then be accepted by the awarding of a contract and/or by subsequently issuing a Purchase Order to the successful bidder. If the University has existing, formal, on-going Strategic or Endorsed Supplier agreements in place for the goods or services required, then these Suppliers must be invited to submit to a Tender process. It is recognised that Monash University has a broad range of pursuits resulting in a need to acquire specialised equipment, particularly for research activities. It is often argued that there is only a single source of supply for many of these specialised items. However, to ensure that the University gets a best value for money outcome in sourcing such equipment it is necessary that a genuine attempt is made to source alternate suppliers and to vigorously seek competitive tenders/quotations wherever possible. This document therefore outlines a procedure (Tendering requirement for purchase of specialised equipment) to be followed to ensure a good purchasing outcome. Definition of termsAdvertised Open Tender: A Tender that is advertised in a Newspaper inviting Bids from all prospective Suppliers as well as being distributed, where applicable, to Suppliers registered in Tenderlink that match the profile of the goods / services being sought.. See also – Closed Tender and Open Tender. QuotationsWhere the goods and/or services being sought exceed, or are anticipated to exceed, the Quotation Threshold Value but are less than the Tender Threshold Value, then an RFQ is to be issued to at least three Suppliers seeking competitive Quotations unless the purchase can be effected from a Strategic or Endorsed Supplier, in which case the need for a competitive process is not required unless the value exceeds the Tender Threshold Value.ResponsibilityRequesting Officer An RFQ should be forwarded in writing by either, mail, email or via Tenderlink to prospective Suppliers. The information contained in an RFQ must be consistent in content and form to all prospective Suppliers so that all Suppliers are given an equal chance to conform to the requirements of the RFQ and are able to submit a competitive Quotation that can be fairly evaluated against Quotations from other Suppliers. Monash Procurement will assist in distributing RFQs via Tenderlink, if required, upon receipt of details from the Cost Centre on the Tenderlink Check-List. Refer to Procedure – Using the Tenderlink e-Tendering portal (Australia) for details.ResponsibilityThe Requesting Officer / Monash Procurement, if required for Tenderlink Where appropriate, the RFQ should seek, and Suppliers must be requested to provide, an environmental impact statement of the Goods or Services in their Quotation (see also Guidelines for environmentally and socially responsible purchasing).ResponsibilityRequesting Officer Suppliers should be given at least five business days from receipt of the RFQ to prepare and submit a Quotation.ResponsibilityRequesting Officer or Monash Procurement if via Tenderlink Suppliers must be informed in writing that written Quotations are required to be submitted by a Supplier by either mail, email or via Tenderlink (if the original RFQ was issued via Tenderlink).ResponsibilityRequesting Officer Quotations should be held in a sealed envelope until the Closing Date/Time or, if a Closed Tender (RFQ) when all Bids have been received. All bids should be opened at the same date and time.ResponsibilityRequesting Officer or person nominated in the RFQ to receive Quotations All Quotations must be summarised on the Quotation / Tender Summary Form and kept as a permanent record that is cross-referenced to a Purchase Order raised for the supply of the good or service being sought.ResponsibilityRequesting Officer All Quotations should be evaluated against pre-set criteria. The lowest or best value for money Bid should be accepted as the successful Bid.ResponsibilityRequesting Officer TendersWhere the goods and/or services being sought exceed, or are anticipated to exceed, the Tender Threshold Value then a Tender (RFT or RFP) is to be distributed via Tenderlink seeking competitive Bids from suitable Suppliers. The Tender can be issued either as a Closed Tender to at least three Supplier or as an Open Tender to a wider group of Suppliers. The decision as to an Open or Closed Tender is to be decided by the Tender Panel who should decide the most suitable approach to the market in order to secure an optimal, value for money outcome.ResponsibilityRequesting Officer in consultation with Monash Procurement Prior to the distribution of a Tender a Tender Panel must be formed comprising at least three University Officers for Tenders less than $1M or five persons for Tenders in excess of $1M. The Tender Panel must have a designated Chairperson. The Tender Panel members should approve the Tender documentation prior to distribution to prospective Suppliers. Refer to the related “Procedure: Composition and Role of Tender Panel” for details on the forming a Tender Panel and appointment of a Probity Auditor, where required.ResponsibilityHead of Department, Dean, Divisional Director, Vice-President, Procurement Director, as appropriate. A Tender (RFT or RFP) is be forwarded via Tenderlink to prospective Suppliers. The information contained in the Tender must be consistent in content and form to all prospective Suppliers so that all Suppliers are given an equal chance to conform to the requirements of the Tender and able to submit a competitive Bid that can be fairly evaluated against Bids from other Suppliers. Monash Procurement will provide assistance in distributing an RFT or RFP via Tenderlink upon receipt of details from the Requesting Officer on the Tenderlink Check-List.ResponsibilityThe Requesting Officer who requires the goods or services being sought, in consultation with Monash Procurement. Suppliers must be given the Minimum Tender Open Time to respond to an RFT or RFP.ResponsibilityRequesting Officer and Monash Procurement Suppliers must be informed that a written response (Bid) is to be submitted on or before the Closing Date/Time by lodgement on the Tenderlink portal.ResponsibilityRequesting Officer Tenderlink-automatically notifies the password to open the Electronic Tender Box immediately after Closing Date/Time. This is sent via secure email to the officer nominated in the RFT/RFP when initially set-up in Tenderlink. The nominated officer should then “unlock” the Tender Box and extract the submitted Bids for distribution to the Tender Panel for evaluation.ResponsibilityNominated Officer (can be a member of Monash Procurement) Any Bid received in the Tenderlink Tender Box after the Closing Date/Time can be downloaded from the Tender Box but must be annotated as a “late bid”. A Late Bid can still be forwarded to the Tender Panel for consideration but, unless there are extenuating circumstances acceptable to the Tender Panel or it can be proved that the lateness of the submission was the fault of Monash University, then this Bid should be marked as “Not Compliant – Late Bid” and not considered. A Late Bid should still be kept as a record.ResponsibilityRequesting Officer or Chair of Tender Panel All compliant Bids should be evaluated against pre-set criteria. Tenders, usually being requests for high value goods and/or services, should be subject to a rigorous evaluation process with suitably weighted criteria against which all Bids can be fairly and equitably measured (Refer to Guideline for evaluating tenders). The lowest or best value for money Bid should be accepted as the successful Bid.ResponsibilityChair of Tender Panel All Bids must be summarised on the Quotation / Tender Summary Form and kept as a permanent record that is cross-referenced to a Purchase Order or a Contract executed for the supply of the good or service being sought. Where required, the Quotation / Tender Summary Form is to be forwarded to the Procurement Director as detailed below. In these circumstances a summary of the evaluation criteria and related scoring must also be forwarded with the Quotation / Tender Summary Form.ResponsibilityRequesting Officer or Chair of Tender Panel Where the value of the goods / services to be acquired exceeds $200,000 in a single purchase then the Quotation / Tender Summary Form must be forwarded to the Procurement Director who will ensure that a proper competitive process has been conducted before arranging for the release of the associated Purchase Order in SAP by the designated officers. If the Procurement Director deems that prior approval is required by the Procurement Board (in special circumstances or for Purchase Orders over $1M) then he/she will forward the relevant documentation to the Procurement Board.ResponsibilityRequesting Officer or Chair of Tender Panel, Procurement Director Where the value or projected value of the goods / services required exceeds $500,000 and will result in an award of an On-going Supply Contract for the purchase of goods / services, then the Quotation / Tender Summary Form must be forwarded to the Procurement Director who will arrange for the recommendation to be reviewed by the Procurement Board. Procurement Board approval is required before a formal contract can be executed with a Supplier. It is usual that for On-going Supply Contracts the selected Supplier(s) will be nominated as an “Endorsed Supplier(s)” to the University.ResponsibilityRequesting Officer or Chair of Tender Panel, Procurement Director Tender requirements for purchase of specialised equipmentFor equipment whose value exceeds the Tender Threshold Value, a genuine attempt must be made to source competitive quotations for specialised items of equipment by preparing a detailed tender document (RFQ or RFP) that outlines specific operational and technical requirements. The RFP must not be so tightly specified to deliberately limit the opportunity of bidding to only one supplier.ResponsibilityChair of Tender Panel The tender document should be forwarded, via Tenderlink, to those organisations with some capability of fulfilling the requirement, whether it is full or partial compliance to requirement.ResponsibilityChair of Tender Panel / Procurement If competing, compliant bids are received these should be evaluated according to the pre-determined criteria. If only one bid is received than a commitment to purchase from that supplier must not be communicated until approval to purchase has been sought and granted by the Procurement Board. The Quotation / Tender Summary Form is to be used to seek approval and must be sent to the Procurement Director for presentation to the Procurement Board.ResponsibilityChair of Tender Panel If the Procurement Board is satisfied that a genuine attempt has been made to seek competitive quotations then it may grant approval to proceed with the purchase.ResponsibilityProcurement Board If the Procurement Board feels that insufficient quotations have been sought it may direct the Procurement Director to investigate the matter and seek out alternative suppliers. In this regard, it is therefore of advantage that this search is carried out by the Cost Centre / Department involved in order to expedite the procurement process.ResponsibilityProcurement Director If the Procurement Director is able to identify alternative supplier(s) then the responsibility will be referred back to the requesting officer to seek further quotations and to represent these to the Procurement Board.ResponsibilityProcurement Director and Chair of Tender Panel If the Procurement Director is satisfied that there is only a single supplier then he/she can approve the process to proceed to a formal purchase.ResponsibilityProcurement Director Other Tendering Requirements
ResponsibilityRequesting Officer, Chair of Tender Panel Contact Person: Nicole Tournier |