4. Bidder Selection
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4. Bidder Selection Start Comparison
a. Are there any rules on the selection criteria?

The rules on selection criteria are not prescriptive. At the federal level, the CPRs require agencies to include criteria that enables the evaluation of bids on a fair, common and appropriately transparent basis. For procurements above the relevant procurement threshold, the CPRs require that the tender requirements include evaluation criteria to be considered in assessing submissions. The key consideration in evaluating a tender will be value for money.

b. Is prequalification an option? If so, what are the requirements? What is the procedure?

Prequalification is permitted. A prequalified tender involves publishing an approach to market inviting submissions from all potential suppliers on:

  • a shortlist of potential suppliers that responded to an initial open approach to market on AusTender;
  • a list of potential suppliers selected from a multi-use list established through an open approach to market; or
  • a list of all potential suppliers that have been granted a specific licence or comply with a legal requirement, when the licence or compliance with the legal requirement is essential to the conduct of the procurement.
d. Do “blacklists” for bidders exist? If so, what are the conditions for unlisting?

No such public "blacklists" exist.

e. Does the involvement of a company in the set-up of a procurement procedure exclude the company from said procedure due to conflict of interest?

Not as a default rule, however such a company would likely need to demonstrate to the procuring agency that the prior involvement did not constitute an actual or apparent conflict of interest. What is an actual or apparent conflict of interest is typically left as a matter for the judgement of the agency. The terms for a particular procurement might also contain terms restricting a bidder from participating in the scoping phase and then bid phase (eg, because in the circumstances the government has assessed that to allow such participation could create a conflict of interest or be unfair to other bidders).

f. Can bidders combine to submit a bid (bidder consortia)? What limitations apply?

Generally yes such combined bids are permitted.

Division 1 of Part IV of the CCA contains parallel civil and criminal prohibitions on companies making or giving effect to a “cartel provision” in a contract, arrangement or understanding. A cartel provision is a provision of a contract, arrangement or understanding between competitors that has the purpose or effect of fixing, controlling or maintaining prices for the purpose of rigging bids, restricting outputs or allocating customers, markets or territories. Under these prohibitions, bid rigging includes a provision of a contract, arrangement or understanding which has the purpose of ensuring that if there is a request for bid:

  • one or more of the parties bid but others do not;
  • parties bid on the basis that one bid is more likely to be successful;
  • some parties will withdraw from the bidding process;
  • parties will proceed with the bidding process on the basis that one bid is more likely to be successful; or
  • parties agree on a material component of their bids.

Collusive tendering by competitors can also constitute price fixing and customer allocation for the purpose of the prohibitions on cartel conduct.

g. Can members of a bidder consortium be changed during a procurement procedure?

Yes, such changes may be permitted with the consent of the customer. The Customer will consider matters such as whether the change is in the interests of the competitive process and the capabilities of the replacement member. To allow such a change the government customer will need to be satisfied it is within the procurement rules and that the other bidders are not suffering an unfair disadvantage.

h. Do limitations apply for participation of related bidders in the same procurement procedure with competitive bids?

There is no prohibition on related bidders competing in a competitive bid process. However, related bidders may need to satisfy the procuring agency that their participation does not constitute a conflict of interest and that they have appropriate ethical barriers in place (eg, so that the related bidders do not have access to each other's pricing information).

i. Is there a special regulation or a special requirement for a foreign company to participate in a procurement procedure?

No such regulations exist, however tender documents will generally specify, among other things, that tender responses be in English, that prices be quoted in Australian dollars, and that Australian units of measurement be used.