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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
    • quality
    • delivery
    • service
    • 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?

    Examples
    • 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.

Contact

For general procurement queries, email betterprocurement@hpw.qld.gov.au.