Making a purchase without a competitive process

Sometimes agencies may need to be exempt from the minimum competitive requirements of the policy.

The State Supply Commission's Open and Effective Competition Policy allows exemptions for certain circumstances. Your agency will be required to justify your decision to elect to become exempt from the minimum requirements.

The minimum requirements are:

  • up to $50,000: determine the most appropriate procurement method including direct sourcing, or verbal or written quotations
  • $50,000 up to $250,000: request written quotations
  • $250,000 and above: open tender through a public advertisement

Exemptions under the Open and Effective Competition policy

Show more
There are limited circumstances when your agency might need to consider an exemption.

Your agency may need to get an exemption to:

  • directly engage a supplier without seeking competitive quotes, or without going to public tender 
  • directly engage an Aboriginal business or an Australian Disability Enterprise
  • approve the naming of a branded product
  • approve a contract period greater than five years
  • approve an advertising period less than ten days
  • choose not to publish contract award details on Tenders WA as it represents operational risk

When minimum requirements do not apply

Show more
There are times when an agency can purchase goods and services without following normal procedures.

Circumstances where the minimum requirements may not apply include:

  • an emergency situation
  • there is a bona fide sole source of supply
  • an agency has awarded a contract for a similar requirement through a competitive process within the previous 12 months and there is a reasonable expectation that the market has not changed.
  • an agency requires the use of goods and services from a particular supplier that must be integrated within an existing contractual arrangement, project or ICT standard operating environment and an alternative product is not suitable
  • where direct negotiations or the preferred service provider provisions of the Delivering Community Services in Partnership Policy (DCSP Policy) are applied

The grounds for exemption from the minimum requirements may not be applicable when the total contract value exceeds the covered procurement threshold under any of the Free Trade Agreements (FTAs) held by the Australian Government.  This is due to the requirements of selective and limited tendering processes included in the government procurement chapters of the FTAs. Read more about requirements under the FTAs in the Free Trade Agreement Guidelines.

A partially exempt agency must obtain advice, in accordance with their partial exemption, from Finance prior to proceeding with an exemption from the minimum requirements. Agencies do not have to involve Finance when proceeding with an exemption from minimum requirements to buy from a registered Aboriginal business or an Australian Disability Enterprise, but must still involve Finance in the subsequent procurement process.

Exemption templates

The process of making procurements exempt

Show more
There are important procedures to follow if you make a procurement without following the competitive process.

Where an exemption or approval has been granted, your agency must ensure:  

  1. the Accountable Authority approves the exemption or approval in writing
  2. justification for the exemption or approval is documented on file
  3. the exemption or approval is recorded on the agency’s exemption register
  4. the procurement represents value for money
Page reviewed 18 May 2020