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- 18 -DEALING WITH THE AUSTRALIAN GOVERNMENTMeyer VandenbergIntroductionThe Australian Federal Government is one of Australia’s largest purchasers, contractingto procure goods and services in the sum of over $42 billion annually.The core principle of the Australian Government Procurement Framework is to ensurethat the Australian Government achieves “value for money”. There are more than 120Australian Government departments, agencies, authorities and companies subject to thisframework. For most products and services there is no single ‘government market’, asmany agencies operate individually.Value for money is considered by the Australian Government as best achieved byadopting appropriately competitive and non-discriminatory procurement processes.Australian Government officials are required to buy goods and services in an ethical,accountable and transparent manner. They must not seek gifts or other favours frompotential suppliers, and are required to follow procedures and protocols designed toensure a fair and consistent approach to procurement activities.When selling to the Australian Government it is important that suppliers understand thecustomer, the associated rules and processes, and how to watch for opportunities. Anoverview of these matters is set out below.AUSFTAThe Australia-United States Free Trade Agreement (AUSFTA) resulted in Australian andUS businesses being granted non-discriminatory rights to bid on contracts to supplyAustralian Government entities, including all major procuring entities and administrativeand public bodies. Australia’s procurement policies largely emanated from thisagreement and benefit suppliers throughout the world.Chapter Fifteen of the AUSFTA provides comprehensive obligations requiring eachcountry to apply fair and transparent procurement procedures and rules and prohibitingeach from discriminating against suppliers from the other country. It establishes a basicrule of “national treatment”, meaning that each country’s procurement rules must treatthe other country’s suppliers in a manner that is “no less favourable” than their domesticcounterparts. The Chapter also bars discrimination against locally established supplierson the basis of foreign affiliation or ownership and provides rules aimed at ensuring a fairand transparent procurement process.OpportunitiesOverseas suppliers can access information about opportunities to supply to theAustralian Government on “AusTender”. See www.tenders.gov.auAusTender provides centralised publication of Australian Government businessopportunities, annual procurement plans, multi-use lists and contracts awarded.P950592_191.doc