Exemption from tender application

Instructions

Note: These guidelines apply to exemptions from the requirement to go to open tender or quotation. For further information regarding exemption from the University of Newcastle’s Procurement Policy and Guidelines, please contact Commercial Services.

Background

The University is committed to:

  • encouraging open and effective competition between suppliers with the objective of obtaining value for money; and
  • enhancing opportunities for business.

Exemptions from certain mandatory requirements contained in the Tendering and Quotation Guidelines may, in appropriate circumstances, be granted by Commercial Services or other authorised delegates.

Specific exemptions that may be granted are:

  • exemption from the requirement to go to the second stage of multi-stage procurement;
  • exemption from the requirement to select vehicles that comply with the mandated minimum Greenhouse Ratings;
  • exemption from the requirement to obtain three quotes or go to an open tender;
  • exemption from the requirement to use pre-qualified consultants or contractors; and

There may also be granted approval of an extension to a contract which is outside the terms of the original contract provided the extension does not involve any substantial change to the scope of the original contract. This will usually only occur where the extension is required to enable a full procurement process to be properly undertaken or where extraordinary circumstances justify the extension.

How to Obtain an Exemption

Prepare and forward an Exemption Application to Commercial Services, commercialservices@newcastle.edu.au detailing the procurement requirement and the reasons that an exemption from the normal processes is required, attaching any supporting documentation.

Exemptions will only be granted in exceptional circumstances, where it can be demonstrated that an exemption is in the best interest of the University and where the proposed purchase will clearly achieve the best overall value for the money spent.

Goods and Services

Exemptions from the requirement to seek written quotations or call open tenders may be granted in the following circumstances:

  • where, in response to a prior notice, invitation to participate, or invitation to tender:
    • no tenders were submitted;
    • no tenders were submitted that conform to the essential requirements in the tender documentation; or
    • no suppliers satisfied the conditions for participation;

    and the stakeholder does not substantially modify the essential requirements of the procurement;

  • where the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute goods or services exist for the following reasons:
    • the requirement is for works of art;
    • the protection of patents, copyrights, or other exclusive rights, or proprietary information; or
    • due to an absence of competition for technical reasons;
  • for additional deliveries of goods or services by the original supplier or authorised representative that are intended either as replacement parts, extensions, or continuing services for existing equipment, software, services, or installations, where a change of supplier would compel the Faculty/Division to procure goods or services that do not meet requirements of interchangeability with existing equipment;
  • where a Faculty/Division procures a prototype or a first good or service that is intended for limited trial or that is developed at its request in the course of, and for, a particular contract for research, experiment, study, or original development;
  • in so far as is strictly necessary where, for reasons of extreme urgency brought about by events unforeseen by the Faculty/Division, the goods or services could not be obtained in time using an open or selective tender.
  • for purchases made under exceptionally advantageous conditions that only arise in the very short term, such as from unusual disposals, unsolicited innovative proposals, liquidation, bankruptcy, or receivership and not for routine purchases from regular suppliers; and
  • in the case of a contract awarded to the winner of a design contest provided that:
    • the contest has been organised in a manner that is consistent with obligations under the Australian Institute of Architects Competition Guidelines; and
    • the contest is judged by an independent jury with a view to a design contract being awarded to the winner.

Where an exemption is sought from the requirement to go to an open tender based on single supplier circumstances, the absence of available competition should be verified by the relevant Commercial Relationship Manager in Commercial Services.

Retrospective exemptions will not be granted.

Building and Construction

Exemptions from the requirement to seek quotations or tenders may be granted in the following circumstances:

  • where, in response to a prior notice, invitation to participate, or invitation to tender:
    • no tenders were submitted;
    • no tenders were submitted that conform to the essential requirements in the tender documentation; or
    • no suppliers satisfied the conditions for participation;

    and the stakeholder does not substantially modify the essential requirements of the procurement;

  • where the services can be supplied only by a particular supplier and no reasonable alternative or substitute goods or services exist for the following reasons:
    • the requirement is for works of art;
    • the protection of patents, copyrights, or other exclusive rights, or proprietary information; or
    • due to an absence of competition for technical reasons;
  • for additional deliveries of services by the original supplier or authorised representative that are intended either as replacement parts, extensions, or continuing services for existing equipment, services, or installations, where a change of supplier would compel the Faculty/Division to procure services that do not meet requirements of interchangeability with existing equipment;
  • where a Faculty/Division procures a prototype or a first service that is intended for limited trial or that is developed at its request in the course of, and for, a particular contract for research, experiment, study, or original development;
  • in so far as is strictly necessary where, for reasons of extreme urgency brought about by events unforeseen by the Faculty/Division, the services could not be obtained in time using an open or selective tender.
  • for purchases made under exceptionally advantageous conditions that only arise in the very short term, such as from unusual disposals, unsolicited innovative proposals, liquidation, bankruptcy, or receivership and not for routine purchases from regular suppliers; and
  • in the case of a contract awarded to the winner of a design contest provided that:
    • the contest has been organised in a manner that is consistent with obligations under the Australian Institute of Architects Competition Guidelines; and
    • the contest is judged by an independent jury with a view to a design contract being awarded to the winner.

The following additional grounds for an exemption may be applied where appropriate:

  • the work is urgent;
  • the work is of a specialist nature which a limited number of contractors are capable of carrying out; or

Where an exemption is granted pursuant to one of these grounds, and the number of contractors invited to tender is limited, a tender may be invited without public advertisement or a contractor may be engaged without any other tenders being invited.

Retrospective exemptions will not be granted.