Quotations and tenders are written offers to supply a specified good or service. Where there is no existing government contract, the path to market (quotation or tender) is determined by the value of the contract. The following thresholds apply:
|Up to $2,500||One verbal or written quote|
|Between $2,500 and $25,000||One written quote|
|Between $25,000 and $150,000||Three written quotes|
|More than $150,000||Public tender|
A request for quotation (RFQ) is a direct invitation to specific suppliers. Businesses selected to quote may have provided goods or services to government in the past; been identified from a product, service, trade or professional directory; or marketed themselves to government.
A request for tender (RFT) is an open invitation to the market to submit a written bid. An RFT will sometimes follow a more general request for information (an expression of interest). Government tender opportunities are published on the Tenders VIC website and are also advertised in Wednesday’s edition of the Herald Sun. Departments must use Tenders VIC to advertise their tenders, whereas agencies may do so where appropriate.