Which is the most appropriate method for me?

You can make a purchase under $50,000 by direct purchasing or verbal quotation – but only if there is no Common Use Arrangement (CUA) and you aren’t purchasing from an Australian Disability Enterprise or Aboriginal business.

When purchasing for your agency you should consider the nature of the market, complexity, risk and the best way to get what you need, when you need it.  

The State Supply Commission's Open and Effective Competition Policy allows you to determine the most appropriate procurement method when your purchase is up to the value of $50,000 (including GST).  

Firstly, you need to check if the good or service is provided by a Common Use Arrangement (CUA) or you might see if there is an Australian Disability Enterprise (ADE) or Aboriginal business who can provide the goods or service.  

If you decide to go to alternative suppliers you can make a direct purchase or get a verbal quote. If the purchase is more complex or if the market conditions require competitive quotations you should get a written quote 

Making a direct purchase

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Your agency can make a purchase directly when: 

  • there is not a CUA 
  • the purchase is valued up to $50,000 
  • the requirements are simple  
  • there is a small market 
  • the purchase is low risk and low value 

There is a straightforward process of making a direct purchase 

Seeking verbal quotes

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Your agency can seek verbal quotes when:

  • the purchase is simple
  • there is a competitive market

You should get two to five verbal quotes from suppliers. 

Page reviewed 8 January 2020