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- 19 -AusTender’s subscription service allows anyone to register the area of their businessinterest and receive free automatic email notifications of the latest opportunities as theyare advertised. It also allows suppliers to lodge tender responses online.Another avenue to government which may be of particular interest to internationalsuppliers is the Defence Unsolicited Proposals Gateway. The Department of Defencereceives many ‘unsolicited proposals’ from industry due to its unique businessrequirements. These proposals may range from small, off-the-shelf supply items to morecomplex capability solutions. Defence has therefore established this gateway to providea single entry point for businesses and individuals to submit their proposals to Defence.See http://www.defence.gov.au/dmo/id/ic/dupg.cfm.Rules and ProcessesThe major Australian Government agencies (but not all) are governed by the FinancialManagement and Accountability Act 1997 (Cth) (FMA Act). The FMA Act sets out theframework for the proper management of public money and public property by theExecutive arm of the Australian Government. The regulations under the FMA Act requiregovernment officials to comply with the the Australian Government’s “CommonwealthProcurement Guidelines” (CPGs). There are also a number of Australian Governmentbodies governed by the Commonwealth Authorities and Companies Act 1997 (Cth).These bodies are also subject to the CPGs but to a lesser degree as they do not tend toengage in substantial purchases. These requirements can be accessed on theDepartment of Finance and Deregulation’s website www.finance.gov.au.The CPGs articulate the Australian Government’s procurement policy in detail with thecore principle underpinning all activities being “value for money”. The CPGs explain howvalue for money is to be achieved through encouraging competition (nationally andinternationally) promoting the efficient, effective and ethical use of resources andensuring that Australian Government bodies act in an accountable and transparent way.The CPGs include a set of mandatory procurement procedures which must be followedwhen the value of the property or services being purchased exceeds the thresholds setby the Australian Government. These mandatory procurement procedures essentiallyrequire agencies to advertise the opportunity to the world (i.e. conduct an “open tender”process) unless specific circumstances apply. The threshold for all non-constructionprocurements is $80,000 for FMA Act agencies and $400,000 for CAC Act agencies.The threshold for procurements of construction services is $9 million for all agencies.Where the value of goods or services sought is below the threshold, agencies have moreflexibility to decide on a procurement process appropriate to the scale, scope andrelative risk of the proposed procurement. This may be an over-the-counter purchase, alimited invitation to one or more suppliers for oral or written quotes, an approach to themarket through limited invitations to tender, or a public approach to the market throughan open tender process.As a consequence of the CPGs, many Australian Government agencies have set uptheir own “panel arrangements”. A panel is an arrangement established through an opentender process, under which multiple suppliers are selected to supply agreed goods andservices and enter into a “deed of standing offer” with the agency. Panels are anattractive option for many agencies because the open tender process only needs to becarried out once every few years to test the market and to establish the panel. Theagency may then purchase directly from suppliers on the panel, as required. TypicalP950592_191.doc