Procurement tiers

This page explains the most common procurement methods used by the Northern Territory Government.

An agency can use a different procurement method depending on the activity.

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Tier 1: Less than $15,000

Agencies may approach a Territory enterprise directly to buy available goods and services.

For procurement of more complex supplies where goods or services must be described or special terms set out, agencies will request a written quote from one or more suppliers, including a quote from at least one Territory enterprise.

Tier 2: $15,000 but less than $100,000

Agencies may invite three or more suppliers, including at least one Territory enterprise, to submit a response to a simple request for a quotation.

Tier 3: $100,000 but less than $500,000

Agencies may publicly invite suppliers to submit a response to a request for quotation published on Quotations and Tenders Online (QTOL).

Where there are limited suppliers, or the nature of the supply needs to be confidential, agencies may invite one or more suppliers to submit a bid to respond to a request for quotation.

Tier 4: $500,000 but less than $5 million

Where possible, future tender opportunities will be listed on Quotations and Tenders Online.

Agencies will invite all suppliers to submit a response to a request for tender.

Where there are limited suppliers, or the nature of the supply needs to be confidential, agencies may invite one or more suppliers to submit a response to a request for tender.

Tier 5: $5 million and over

Where practical, future tender opportunities will be listed on Quotations and Tenders Online.

Agencies will invite all suppliers to submit a response to a request for tender via QTOL.

Where there are limited suppliers, or the nature of the supply needs to be confidential, agencies may invite one or more suppliers to submit a response to a request for tender.

You may be asked to give information in your response to the request for tender to help agencies assess proposed industry participation commitments. An industry participation plan may be entered into with the preferred tenderer.

You can find the industry participation policy on the Department of Trade, Business and Innovation website.

Last updated: 28 June 2018