Finance has developed templates to assist with the evaluation process. The Community Services Evaluation Handbook template (available at Community services templates and guides) gives a format and methodology for rating offers according to the qualitative criteria.
When you have completed the tender evaluation process, prepare an evaluation report recording the reasons for the evaluation panel’s recommendation. Clearly document the reasons for the recommendations and for non-selection of any Offers. The report should be a complete explanation of the evaluation and has to be able to stand up to independent scrutiny.
The Community Services Evaluation Handbook and Evaluation Report templates are available on Community services templates and guide page.
How are offers evaluated?
Show moreYou can exclude offers that do not cover all of the requested information from evaluation.
A complete offer includes:
- respondent details
- a response to any mandatory requirements
- a response to qualitative criteria
- a response to disclosure requirements
- pricing
The service provider or providers assessed as being able to deliver the specified outcomes and offer value for money will be awarded a service agreement.
Government uses a value for money approach to purchase goods and services. This does not necessarily mean the lowest price possible. The selection requirements are assessed together with the price offered for the service to decide the best value for money outcome for the State. Any assessment considers price as well as economic, environmental and social benefits.
Clarifying offers
Show moreIf an agency wants to ask questions about your offer, or discuss possible changes they may engage in formal negotiations.
A service agreement is formed when a letter of acceptance is sent to the service provider.
Unsuccessful providers will receive a letter advising of the name and estimated total contract value of the successful offer.
Evaluation report
Show moreYou can access the template for the Community services evaluation report at Community services templates and guides.
Evaluation Reports for procurement valued at $5 million and above must be submitted to the Community Services Procurement Review Committee (CSPRC).
Note: Agencies can submit Evaluation Reports under $5 million to the CSPRC for their review, particularly if the procurement is complex, politically driven or high-risk.
Undertake due diligence
Show moreDue diligence is about independently verifying that the recommended service provider has the capacity and capability to successfully and fully deliver the service specifications/requirements over the term of the service agreement.
Due diligence lets the agency and respondent test their expectations and understanding of the service agreement, check and correct assumptions if needed, and clarify and agree roles and responsibilities. Due diligence can include independent verification of insurances, ownership structures, reference checks etc. Formal due diligence is not usually needed for simple, routine or low-risk service agreements.
Conduct negotiations
Show moreThere is no 'one size fits all' negotiation approach. It will depend on what is being negotiated, the resources available, the skills and experience of the people involved and the timeframe.
Agencies should document information in a Negotiation Plan such as:
- purpose of the Negotiation Plan
- target audience
- authorisation
- objective for negotiation process
- anticipated goals and interest of the other party
- negotiation team structure
- team members roles and responsibilities
- specialist advice
- venue for negotiation
- timeframe for negotiation
- issues for negotiation – our position, their positions, possible compromises
- questions to be asked during negotiations and why
- best alternative to a negotiated arrangement
Stick to the following ethical, probity and confidentiality needs when negotiating:
- open and fair competition, consistency and transparency of process
- confidentiality of each respondent’s information
- negotiations conducted by trained and/or experienced negotiators
- the Negotiating team holds to their agencies’ code of conduct
- negotiating team is not compromised in their ability to act, and can act impartially
- complete documentation for external scrutiny purposes
- develop a detailed negotiation plan
- professional and objective price negotiations
- identification and resolution of any conflict of interest
Sometimes, it is worthwhile and fitting to involve a probity advisor to oversee the negotiation and to give advice on the integrity of the proposed process, particularly for large, complex, high-risk or high-value procurement activities.
At the end of the negotiation and depending on the complexity of the process, we recommended that you write a report to record the complete process. Consider recording the information below, keeping in mind that it is not limited to:
- observations and agreements reached recorded by the nominated Negotiation Process Observer.
- outcomes of negotiation, including inputs to the evaluation process/recommendation reports, inputs to contractual documents, and any concessions exchanged and accepted during the negotiation
- negotiations and conversations as reference for any disputes
- approvals obtained from the agencies’ Accountable Authority
- contract documents executed
- review outcomes i.e. success of negotiation and procurement process