Consultancies—selection and engagement
The methods of selection used for consultancies are categorised as follows:
- open tender—a procurement procedure in which a request for tender is published inviting all businesses that satisfy the conditions for participation to submit tenders. Public tenders are generally sought through the Australian Government AusTender website, www.tenders.gov.au
- select tender—a procurement procedure in which the procuring agency selects which potential suppliers are invited to submit tenders (this includes tenders submitted through multi-use lists). This procurement process may only be used under certain defined circumstances
- direct sourcing—a form of restricted tendering, available only under certain defined circumstances, with a single potential supplier or suppliers being invited to bid because of their unique expertise and/or their special ability to supply the property and/or services sought
- panel—an arrangement under which a number of suppliers, initially selected through an open tender process, may each supply property and/or services to an agency as specified in the panel arrangements. Quotes are sought from suppliers that have prequalified on the agency panels to supply to the Government. This category includes standing offers and supplier panels where the supply of property and/or services may be provided for a predetermined length of time, usually at a prearranged price.
Reasons for the use of external resources
The reasons for decisions to employ external consultancy services vary and it is possible that a consultancy might belong in more than one category. Principal justification is based on the following classifications:
- A—skills currently unavailable within agency
- B—need for specialised or professional skills
- C—need for independent research or assessment.