Amendments to the Procurement Framework

Amendments to Government Procurement Act 2001 and Government Procurement Regulation 2007

What is happening?

The amendments to the Government Procurement Act 2001 and the Government Procurement Regulation 2007 took effect from 1 July 2024.

We have put together key information on legislation changes to support you in your procurement engagement with the ACT Government.

Background

In the 2023-24 financial year, the ACT Government spent $1.67 billion on procurements that support the delivery of quality public services, infrastructure, economic growth, and community wellbeing.

In 2022, the ACT Government announced a significant Procurement Reform Program. One of the deliverables under the Reform Program was amendments to the ACT Government’s procurement legislation. These changes make sure that our legislation continues to meet the expectations of the ACT Government and our community.

What do the changes mean for me?

Some of the legislative amendments, like the changes to quotation and tender thresholds and exemptions from those thresholds, respond to feedback from suppliers to help reduce the costs and resources associated with tendering and allow suppliers to have sufficient time to develop their tender. The changes are also more aligned with international trade arrangements.

Other changes provide clarity around important ideas and rules to make sure they apply in a fair way to everyone.

Value for money must be met regardless of the method of procurement.

Requirements for quotation and tender

The new thresholds reduce the burden on suppliers, by opening up more quotation pathways to respond to more opportunities to work with the ACT Government. To make sure we are clear on your offering, all quotations must be in writing.

$Value (incl GST) and Category Threshold	Requirements
Less than $25,000	Minimum one (1) written quotation.
goods or services not related to construction work ≥$25,000 and <$500,000 goods or services that are related to construction work of ≥$25,000 but <$1 million	Minimum three (3) written quotations.
goods or services that are not related to construction work of ≥$500,000 goods or services that are related to construction work of ≥$1 million Invite tenders.	Advertise the invitation electronically for at least 25 days, or 10 days if notice of the procurement has been electronically published for ≥40 days and ≤12 months, before the first day of advertisement of invitation, or exceptional circumstances mean that an advertising period of 25 days is impracticable. Late tenders are not permitted for open tenders unless that tender was submitted late due to an act or omission by the Territory entity. Important Note: Please ensure that tenders are submitted well ahead of the specified closing time for a procurement. Information and eLearn modules about getting started with the Tenders ACT platform and finding and submitting responses on Tenders ACT are available on the Tenders ACT website.

$Value (incl GST) and Category Threshold

Requirements

Less than $25,000

Minimum one (1) written quotation.

goods or services not related to construction work ≥$25,000 and <$500,000
goods or services that are related to construction work of ≥$25,000 but <$1 million

Minimum three (3) written quotations.

goods or services that are not related to construction work of ≥$500,000
goods or services that are related to construction work of ≥$1 million
Invite tenders.

Advertise the invitation electronically for at least 25 days, or 10 days if notice of the procurement has been electronically published for ≥40 days and ≤12 months, before the first day of advertisement of invitation, or exceptional circumstances mean that an advertising period of 25 days is impracticable.
Late tenders are not permitted for open tenders unless that tender was submitted late due to an act or omission by the Territory entity.

Important Note: Please ensure that tenders are submitted well ahead of the specified closing time for a procurement. Information and eLearn modules about getting started with the Tenders ACT platform and finding and submitting responses on Tenders ACT are available on the Tenders ACT website.

Changes to exemptions from the quotation and tender $ thresholds

ACT Government buyers can seek an exemption from the three (3) quotation requirements, specifically to approach:

certified Aboriginal and Torres Strait Islander entities;
entities based in the ACT and surround region; and
small to medium businesses.

Other exemption grounds apply more broadly to either three (3) quotations and tenders, for procurement:

under a standing-offer arrangement;
of a sublease or licence over land, or part of land, in which the Territory or the Territory entity is the sublessee or licensee eg, sublease of part of a building by the Territory for Territory use;
of goods or services from the Commonwealth, a State or a local government, or an entity of the Commonwealth, a State or a local government;
of research and development services, other than in relation to the planning of research and development services;
of Territory banking, borrowing or investment services;
for engaging a person in relation to any current or anticipated litigation or legal dispute;
of critical services that have been disrupted, or to prevent an imminent danger to health and safety
of goods or services from outside of Australia, for use outside of Australia; or
for a disposal.

These exemptions reflect, among other things, the nature of the market in relation to these categories of procurement and allow flexibilities for an appropriate methodology to be employed.

Notifiable contracts

While the requirements to publish notifiable contracts remain, to ensure greater transparency, the following documents form part of the contract and must be attached to the published text of a notifiable contract:

a labour relations, training and workplace equity plan;
a plan made in relation to local industry participation; and
any other plan submitted in relation to an open tender procurement if the estimated total consideration of the procurement is $5 million or more.

How do I learn more about the changes?

Thank you to suppliers who attended our information sessions in July 2024.

If your business was unable to attend these sessions, you are welcome to contact Procurement ACT for further information via the options specified on our Contact Us page.