Resources from Business Victoria's workshop that will help you to understand the process of supplying goods and services to Government.

2. At the completion of the workshop participants will
understand:
How government purchases goods and services
How to engage with government, both within and across
departments
How to market unique capabilities to government
How to maximise opportunities for success when
responding to government offer documents
Workshop Objective

3. Agenda
Part A:
How government purchases
Engaging with Government
Part B:
How government evaluates your response
Value for Money
Responding to government offer documents, and
Responding to grants.

4. Part A
Engaging with Government

5. How Government Purchases
Request for Quotation
Request for Tender
Open or closed tenders
Expression of Interest
From existing contracts
One off purchase
Single Entity Purchase Contracts
State Purchase Contracts
Pre-qualification arrangements

6. Expression of Interest
First stage of a procurement
Used to determine market capability and capacity
Can lead to a restricted RFT, or direct negotiation
First stage of marketing to government
Always apply - where you have the relevant
capabilities and expertise.

7. Tenders and Quotations
A marketing activity to build government business.
The main difference between quotations and tenders
is based on an assessment of:
The complexity and risk of the procurement
The capability of the organisation conducting the
procurement, and
A market analysis.
The Victorian government no longer uses a dollar
threshold to determine whether a RFT or RFQ is
used.

8. Complexity Assessment Tool
Quadrant Description (example only)
1 Transactional Small value and low-risk transactions where approved
suppliers (e.g. state purchase contracts) are not available.
2 Leveraged Frequently used goods/services in a competitive
marketplace that are procured by an individual department
or whole of government, where the organisation has the
ability to drive value.
3 Focused Procured goods/services where a limited number of
suppliers are available or where novel commercial
arrangements are in place. May include whole of
government contracts.
4 Strategic Goods/services in a competitive market that are high value,
where business criticality is high, and/or where the
good/service is of State significance. May include whole of
government contracts.

9. Request for Quotation (RFQ)
65% of Government procurement activity
RFQ is typically:
issued to a small number of suppliers
for a fixed piece of work
of lower complexity and value.
Most RFQs fall into the ‘Transactional’ or ‘Leveraged’
categories in the Complexity Assessment Tool.
Most RFQs are issued to companies that are already
known to Government and are not released publically
Important to be known to government

10. Introduction to a Request for Tender
RFT is typically:
to the open market
of higher complexity and value
for fixed or ongoing pieces of work
Advertised on a Wednesday:
The Herald Sun
www.tenders.vic.gov.au
Most RFTs fall into the ‘Focused’ or ‘Strategic’
categories in the Complexity Assessment Tool.
Always respond where you can fulfil the tender
requirements

11. Purpose of a Tender
Tenderers must use a tender to
differentiate themselves from
competitors, not just to demonstrate
that they can do the job.

12. Key Parts of a RFQ and RFT
New ‘Invitation to Supply’ template for a RFQ and RFT
with four main parts
The main difference between a RFQ and RFT is the
level of detail provided under each part
A template Invitation to Supply can be accessed
from the Victorian Government Procurement portal:
www.procurement.vic.gov.au

13. Key Parts of a RFQ and RFT
Page 5 of your workbook
Part A: The Invitation:
A1: Introduction
Project officer
Briefing sessions
Q and A
Evaluation criteria
Submission requirements, closing time and date
A2: Specifications:
Mandatory, Highly Desirable and Desirable requirements
Part B: Conditions of Participation:
Rules applying to the Invitation process (Victorian Government and
departmental specific)
cont….

14. Key Parts of a RFT (continued)
Part C: Conditions of Contract:
Core contract requirements
Insurance requirements
Service level requirements
Part D: Tenderer’s Response Schedules:
Questions to be answered by tenderers
Place for answers
Place for any pertinent, Additional Information
Part E: Victorian Industry Participation Policy Statement
(if required):
Policy requirements and timings for completion
NB: this can be completed following the shortlist stage.

15. Exercise 1 – RFT Structure
1. Where do I find Evaluation Criteria and how do I use them in
preparing my tender response?
2. Where do I provide my Response and must I use the template if
one has been provided?
3. How do I know what information I have to provide?
4. How do I know if I can ask questions about the Tender and when I
can ask them?
5. Where do I look to see what insurances I need to provide?
6. How much information should I provide in my Response and how
do I know if there is a word limit?
7. How can I tell when the RFT / RFQ submission is due and the
format it has to be provided in?
Refer to page 7 of your workbook.

16. One-off Contracts
Can be established via RFQ or RFT
Fixed contract value
Fixed term
For a predetermined good or service
One-off purchase
Single customer
www.contracts.vic.gov.au

17. Single Entity Purchase Contracts
Generally established via a RFT
Generally no expenditure limit
Extended term, for example up to 3 years
For a frequently used good or service
Ongoing purchases
Enables purchasing within a department
www.contracts.vic.gov.au

18. State Purchase Contracts
State Purchase Contracts eg:
Stationery and Office Supplies
Software
Printing services
Established through open tender
Generally no expenditure limit
Panel or sole supplier arrangement
Extended contract term
Enables purchasing across the government

19. Prequalification Arrangements
Victorian government prequalification schemes:
Construction Supplier Register
VicRoads Prequalification Register
eServices Register
Marketing Services Register
IT Infrastructure Register (servers, storage equipment,
networking equipment and related services)

20. Key Government Engagement Strategies
To win government business you must get your
business name and service recognised.
Step 1: Build a targeted engagement strategy
Use the Government resources supplied in this Workbook on
pages 13 to 17 to identify the right contact in the right agency
Step 2: Set up a meeting
Email the relevant departmental contact to organise a meeting
Demonstrate how your offering benefits that Department
Tailor the information to suit the requirements of that
department and contact person.
Step 3: Find suitable business opportunities
RFQ or RFT, Procurement Activity Plans and the Contract
Register

21. Key Government Engagement Strategies
Step 4: Develop a relationship with your target
audience
Bid for relevant work, attend debriefs, attend Government
sponsored events and belong to industry associations
Step 5: Discover the information sources departments
use to find out about products and services and
advertise your company information via these sources
(for example pre-qualification register, or industry
network).

22. Government Resources
Victorian Government Directory
www.vic.gov.au/contactsandservices/directory/
State Purchase Contracts (SPCs)
www.procurement.vic.gov.au
Contracts Register
www.contracts.vic.gov.au
Industry Capability Network (ICN)
www.icnvic.org.au
Victorian government procurement portal
www.procurement.vic.gov.au
Invitation to Supply Template
Procurement Activity Plans

23. Reasons to Contact a Contract Manager
Understand the need for the product or service
Understand the nature of the product or service
Introduce your company and service offering
Understand timings for contract expiry and retender (if
applicable)
Get information on any related procurements
Get placed on the Contract Manager’s list of supplier
contacts, and
Follow up every 4 to 6 weeks.

24. Find Business Opportunities
Contracts Register
www.contracts.vic.gov.au
State Purchase Contracts
www.procurement.vic.gov.au
Contact officer
Timeframes for retendering
Contract Value
Victorian Government Tenders website
www.tender.vic.gov.au

25. Find Business Opportunities
Construction Supplier Register
www.dtf.vic.gov.au
eServices Register
www.procurement.vic.gov.au/eservices
Health Purchasing Victoria (HPV)
www.hpv.org.au
VicRoads
www.vicroads.vic.gov.au

26. Other Government Opportunities
Local Government
www.tenderlink.com and www.tendersearch.com.au
Municipal Association of Victoria (MAV)
www.mav.asn.au
Procurement Australia
www.procurementaustralia.com.au
Federal Government
www.tenders.gov.au (AusTender)

27. Peak Industry Bodies
Chartered Institute of Purchasing and Supply
Australasia (CIPSA)
Australasian Procurement and Construction Council
(APCC)
Australian Institute of Project Managers (AIPM)
Australian Information Industry Association (AIIA)
All are excellent networking opportunities with
government representatives (particularly government
buyers)

28. Exercise 2 – Contacting Government
Identify the steps you would take to contact and market to
Government.
Following the workshop build these steps into a
government engagement strategy for your business.
Refer to page 25 of your Workbook.

29. Part B
Responding to Government Offers
10 Tips for Winning Government Business

30. Evaluation Process
Duration and stages of evaluation
Evaluation criteria
Weightings
Evaluation scoring
Value for money

31. Calculation of Value for Money
A balanced benefit measure reflecting the non-financial
score versus cost including:
Capability
Past performance
Quality
Customer service
Financial viability
Contract matters
Fit for purpose
VFM = Non Financial Score / Cost

32. Exercise 7 - Matrix Evaluation Model
EVALUATION CRITERIA SUPPLIER “A” SUPPLIER “B” SUPPLIER “C”
Professional Competence Weight Score Wt*Sc Score Wt*Sc Score Wt*Sc
Compliance to Specification 5 3 15 5 25 4 20
Plan and approach 5 5 25 4 20 5 25
Quality Systems for
Deliverables
4 5 20 7 28 5 20
Capability 4 5 20 6 24 7 28
Past Performance 4 6 24 8 32 7 28
Innovation 4 5 20 5 20 5 20
Total Score 124 149 141
Costs $61,000 $69,500 $123,480
VFM 124 / $61,000 * 100 = 0.20 149 / $69,500 * 100 = 0.22 141 / $123,480* 100 = 0.12

33. Tip #1 Read the Question
Successful tenderers almost always answer all
parts of the question correctly
Tips
Highlight the core requirement
Underline each sub requirement(s) (or hints)
Don’t read Part D Response Schedules in isolation:
Review the Specifications (Part B), and
Review the Evaluation Criteria (Part A)

34. Example
Briefly detail recent experience of similar work.
The Department is looking for succinct and
relevant information. Information is only
required in relation to the three most relevant
activities. The reason why each activity is
relevant is required.

35. Tip # 2 Respond Fully to the Question
Evaluators can only evaluate the content of the tender
response
Evidence is important
Be honest
Demonstrate you understand the product or service
government wants
Demonstrate how you are in a unique position to
provide the service
Differentiate your service offering

36. Example
“Please state your compliance to the
Specifications and where your company does not
comply or partially complies please provide details
of this non-compliance or partial compliance”.

37. How to Respond Fully with Limited Government Experience
Demonstrate how commercial experience is
relevant to government requirements
Demonstrate your understanding of government
requirements
Demonstrate roadmap for building capability
Demonstrate resources and opportunities to
increase resource base

38. Tip # 3 Don’t Assume Everyone Knows You
“We can do this because we are [company] xyz”
Government evaluators cannot consider any
information outside the submitted tender
documents and tender process.
Do not risk assumed knowledge of your
company’s capabilities and projects.

39. How to Respond
Address each question as if your capabilities, strengths
and people are unknown.
Describe reference projects or sites in detail and state
how this is relevant.
Describe how your resources are appropriate for the
job.
Describe your methodologies and approaches in detail.

40. Exercise 3 – Project Management Methodology
On page 28 of your workbook prepare a response
to the following question:
“Please provide details of the methodology and
implementation approach you propose to use in providing
the Products / Services.”

41. Tip # 4 Target Your References
Purpose:
Confirm stated company capabilities
Confirm tenderer experience
Common mistakes:
Haven’t demonstrated the delivery of
competencies during previous projects
Haven’t related to the tender requirements
Scatter gun approach

42. Target Your Reference Projects
Highlight the key requirements in the tender for
a written reference
Provide directly relevant reference projects
Provide no more than 3 reference projects
Address each of the Evaluation Criteria and the
Specifications
Provide recent references (up to 3 years old)

43. Tip # 5 Embrace Duplication
Answer each question fully
Tailor each response - do not copy and paste
Embrace duplication to reinforce your
company’s skills and abilities
Be aware of how government evaluates tenders
Consistency scores well

44. Example
Specific experience and expertise:
Briefly detail your organisation’s recent experience providing
marketing services within a multi-organisational environment
including experience in:
Managing a number of contracts simultaneously within the one
organisation, where the contracts may require differing skills and
focus
AND
Capacity to handle work
Briefly detail the ability and capacity for your organisation to
handle simultaneous projects and also handle projects of a
complex nature

45. Tip # 6 Customer Service Counts
Customer service proposals are effective in
differentiating your tender response
Can generate large variations in scoring
Many tenderers share the same capabilities but
not all put effort into their customer service
proposals

46. Tips for Responding to Customer Service
Regular meetings
Registers
Regular reporting on end user feedback
3 to 5 performance measures
Presentations summarising the results of your
engagement
Easy to read, informative client reports
Analysis of project results with trending or forecast
information
Lessons learned and knowledge transfer
Don’t confuse customer services with value add

47. Exercise 4 – Customer Service Proposals
On page 29 of your workbook prepare a response
to the following question:
“What customer service orientated proposals do you
have which will enhance your bid?”

48. Tip # 7 Offer Value Added Initiatives
Value add initiatives are almost a free kick to
differentiate your tender from others
Doesn’t always mean for free:
Related to the requirements of the tender
Additional to the requirements
Something only your company can provide
Is valued by government, and
Should be genuine and affordable to the tenderer

49. Examples
Effectiveness review of implemented strategies
Training
Supporting documentation
On the floor support
Consider how your value add initiative can turn
into follow on business

50. Exercise 5 – Identify Value-Add Initiatives
On page 34 of your workbook identify 4 value add
initiatives your business could offer the government, and
consider:
The additional value this delivers to government
How the initiative could foster new business opportunities with
that government client
The cost to your business of providing that value add initiative
.

51. Tip # 8 Understand Key Policy Requirements
Transparency, equity, accountability and
competition
Do not tender if you can’t comply with the key
policy requirements
www.procurement.vic.gov.au
Conditions of Participation (Part B)

52. Relevant Policies
Probity (under the Market Approach Policy)
Market Approach Policy
Victorian Industry Participation Policy (VIPP)
Disclosure of Contracts (under the Contracts
Management and Contracts Disclosure Policy)
Tender Complaints Management (under the
Governance Policy)

53. Further Tender Requirements
Minimum insurance requirements
Risk adjusted insurance amounts
Liability
Risk adjusted liability amounts
Financial and performance guarantees
Service level management

54. Tip # 9 Submit a Complete Response
Examples of a complete response:
A tender with pricing
A tender with a complete contract compliance
statement
A tender with references
Material information is all provided

55. Checklist for Tender Completion
List each schedule required in Part D Response
Schedules
Match the evaluation criteria to the response
schedules
Match the mandatory specifications to the
response schedules

56. Checklist for Tender Completion
Full pricing details
Completed compliance statements to contract and specifications
Completed insurance details
List of 3 referees
Signed physical copies of schedules 1 and 2 (where requested)
Correct number of copies of the tender document or USB
Completed “additional information’
Any drawings/designs etc. requested for in the tender document

57. Electronic Response
Before submitting an electronic response
please insert your CD / USB into 3 different PCs
to ensure the content is there and that it can be
read.

58. Tip # 10 Get Your Response in on Time!
Late tenders will not be accepted, unless there is
conclusive evidence that the late lodgement of
the Tender:
Resulted from the mishandling of the Tender
by the Department
Was hindered by a major incident and the
integrity of the Tendering Process will not be
compromised by accepting a Tender after the
closing time.

59. Responding to Government Grants
Grants area primary vehicle to:
support industry development, and /or
deliver against published government policies and programs
The assessment of grants is similar to tenders and
success is largely dependent on answering the
questions well
Use the ‘10 Tips’

60. Responding to Government Grants
Primary eligibility criteria:
geographic location (for example Victoria):
a minimum of 50% local operations
100% of R&D, design or innovation activities should be locally
based
size and revenue of a business (SMEs <200 FTEs and $50M)
Provide solutions to a stated government need that can also be
commercialised

61. Responding to Government Grants
Further criteria:
Use of innovative technology
Economic development
Community development
Productivity gains
Growth opportunities
Opportunities for commercialisation
Financial viability

62. How to Differentiate Your Response
Offer value add initiatives
Offer customer service proposals
Offer environmentally friendly initiatives
Differentiate your response:
Quality systems
Innovation
Research and Development
Knowledge management

63. Exercise 6 – Quality Systems
“If you are not in the process of achieving
certification, please provide details of how you
intend to assure that the deliverables meet the
Department’s requirements for quality?”
Refer to page 35 of your workbook

64. Closing Statement
Contact government
Target your marketing
Develop a competitive advantage
Maximise your chance of winning government
business
www.business.vic.gov.au/tenders

65. Questions?
Thank you for attending
Check out
business.vic.gov.au/events
for more information