How to achieve value for money
When buying for Queensland Government, you have a responsibility to ensure the delivery of value for money in areas beyond price.
Value for money procurement includes:
- advancing the government’s economic, environmental and social objectives
- cost-related factors including
- up-front price
- whole-of-life price
- whole-of-life costs
- transaction costs associated with acquisition, use, holding, and maintenance and disposal
- non-cost factors such as
- fitness for purpose
- supplier support.
Consider value for money throughout the entire procurement process:
- Invest in up-front planning.
- Give advance notice and undertake early engagement.
- Include value for money in objectives and outcomes.
- Evaluate offers for value for money.
- Select the offer that demonstrates best overall value for money.
- Drive value for money through the life of the contract.
Value for money considerations
- Look at broader community benefits—are there opportunities to improve social, economic, and environmental outcomes?
- Social—workplace policies aimed at domestic and family violence initiatives, or social enterprises.
- Economic—increasing jobs regionally or increasing spend with Aboriginal and Torres Strait Islander businesses.
- Environmental—increasing environmental outcomes and sustainability.
- Make it easy for industry to get involved:
- Give the market advance notice.
- Ensure local suppliers are given a full and fair opportunity to bid.
- Take advantage of local capability.
- Evaluate offers against value for money criteria:
- Factor in costs such as transactional, logistics and maintenance expenses.
- Ensure the good or service is ‘fit for purpose’.
- Look at a supplier’s capability such as management, financial viability and previous performance.
- Drive value for money through the life of the contract:
- Work together to continually improve processes.
- Collect and analyse performance data against agreed key performance indicators.
- Check requirements are being met.
- Proactively identify and manage issues.
For general procurement queries, email email@example.com.