Awarding the contract

Between selection of a successful respondent to an open tender and award of contract, your agency needs to undertake a series of checks and negotiations with the supplier.

This includes due diligence checks and getting approvals for procurement processes and financial expenditure from your agency’s business units, and conducting negotiations over price and delivery of the contract. 

What is due diligence? 

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During contract negotiations and management your agency and the preferred respondent have the opportunity to test their expectations and understanding of the contract.

Due diligence may include: 

  • arranging independent checks of accounting records, assets and sites of the supplier 
  • identifying false assumptions in the contract  

Resolving misunderstandings early will assist your agency and the supplier in negotiations.  

Failing to conduct a thorough due diligence process increases the risk of contract failure. 

How do I negotiate with the successful supplier?

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When negotiating the contract your agency needs to maintain the confidentiality of offers.

Negotiating the contract is not always necessary.  

Your agency should establish a negotiation team that will develop a strategy before discussions with the preferred supplier commence. You must always officially record any correspondence relating to the negotiations. 

Your agency must not reveal other potential suppliers' prices or confidential information. 

Advising the successful supplier and unsuccessful suppliers

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Once you have finished negotiations and conducted all due diligence and checks, you can award the contract. 
  1. Notify the successful respondent. 
  2. Notify suppliers who were unsuccessful with the name and total contract value or the total estimated contract value of the successful supplier. 
  3. Provide a debriefing to unsuccessful suppliers if requested. The debrief should only examine their offer and not be a comparison between suppliers. 
  4. Publish the contract details on the Tenders WA system. 

Your agency doesn’t need to publish contract details if: 

  • the Accountable Authority thinks it presents an operational risk, such as compromising security
  • the CUA Buyers’ Guide states that contract award details are not required to be published on Tenders WA
Page reviewed 12 May 2020