Governance Framework

Develop and apply a market approach that encourages participation, eliminates SME barriers, ensures confidentiality, and provides sufficient time for submissions Required

Evidence: Market approach documentation, invitation documents

Provide a secure submission facility, allocate management responsibility, acknowledge receipt, apply late submission protocols Required

Evidence: Submission system documentation, receipt acknowledgements

Evaluate bids with probity, fairness and consistency — evaluation plan, conflict management, separate probity auditor/advisor for critical procurements Required

Evidence: Evaluation plan, evaluation report, probity records

Negotiate transparently and select supplier — debrief unsuccessful suppliers on request, inform all suppliers of status throughout Required

Evidence: Negotiation records, debriefing records, supplier notifications

Applies to

Department, Public Body — Goods, Services, Ict, Consultancy

Conditions

Category in Goods, Services, Ict, Consultancy
Is Hvhr is No

Thresholds

All: $1,000,000 — VGPB supply policies apply to procurement $1M+ (GST inc)

Detail

VGPB Policy 4: Market Approach

Summary

Sets requirements for how agencies approach the supply market and evaluate offers. Covers open, selective, limited, and direct approaches, plus evaluation, negotiation and supplier selection.

4 Mandatory Requirements

MR 11 — Market Engagement (s1.1)

The organisation must develop and apply a market approach that: - Encourages participation from the relevant market segment - Adopts a cost-effective engagement strategy for buyer and supplier - Eliminates barriers to SME participation - Engages fairly and equitably - Ensures confidentiality and security of bids - Provides sufficient time for suppliers to prepare submissions - Makes material changes available to all participants

Invitation documents must detail: conditions for participation, innovative solutions, specifications relevant to ANZ SMEs, applicable government policies, evaluation plan with criteria and weightings, shortlisting indication, and non-exclusionary processes.

MR 12 — Management of Submissions (s1.1.1)

The organisation must: - Provide a secure physical and/or electronic submission facility - Allocate management responsibility for the submission system - Acknowledge receipt (immediately for electronic, within 5 working days for physical) - Apply late submission protocols — late submissions not accepted unless exceptional circumstances, documented with integrity assurance

MR 13 — Evaluation of Bids (s2.1.1)

The organisation must: - Evaluate security risks - Develop an evaluation plan reflecting complexity level - Conduct evaluation with probity, fairness, consistency and impartiality - Address real or potential conflicts of interest before starting - Clearly define probity auditor/advisor role - Separate probity auditor and advisor roles for critical/high-risk procurements - Document and be able to defend all decision-making stages - Consider only bids meeting mandatory requirements - Evaluate alternative offers together with primary offers - Ensure evaluator capability is adequate

MR 14 — Negotiation and Selection (s2.1.2–2.1.3)

Negotiation: process must be transparent, recorded, conducted fairly and equitably; accepted improvements must be within scope.

Selection: develop formal agreement with selected supplier(s); debrief unsuccessful suppliers on request; inform all suppliers of submission status throughout.

Supporting Guides

Market approach guide
Develop an offer template guide
Evaluate and select offers guide
Insurance provisions guide
Negotiate guide
Pre-commercial procurement guide
Procurement auctions guide
Specification writing guide
Supplier debriefs guide

Relationships

Explore Victorian Governance Framework