Understanding how we buy
The Northern Territory (NT) Government buys a wide range of goods, services and works to deliver public services and support the economy. Every purchase, big or small, follows clear rules and principles that aim to:
- spend public money wisely
- support local jobs and businesses
- treat all suppliers fairly
- maximise Value for Territory.
How we buy depends on what we need, the overall value provided, how much it costs and the level of risk.
This helps ensure the best process is used for the right purchase.
Purchasing tiers
The process we use is based on the expected value of the purchase, including GST.
There are two main ways we buy:
- quoting for government – for purchases below $200,000
- tendering for government – for purchases over $200,000.
We may also use panels or period contracts for frequent purchases.
Exemptions may apply in special circumstances, such as emergencies or when there's only one possible supplier.
Purchases are grouped into five tiers:
| Tier | Value including GST | Process |
|---|---|---|
| 1 | Less than $50k | Minimum 1 quote from a Territory business or direct purchase from a Territory business. |
| 2 | $50k to $200k |
Medium-value purchases.
Minimum 3 quotes, 2 from Territory businesses. |
| 3 | $200k to $500k | Open public tender via Quotations and Tenders Online (QTOL). |
| 4 | $500K to $5 million | Public tender required. If no future tender opportunity is advertised, the tender must stay open at least 6 weeks. |
| 5 | Over $5 million | Public tender required. If no future tender opportunity is advertised, the tender must stay open at least 6 weeks. |
Purchasing methods
We use different methods to approach the market, depending on the type and value of the purchase.
No matter the method, we aim to be transparent, consistent and fair.
Used for lower-value, low-risk purchases (usually tier 1 and 2). Quotes may be requested directly from known local suppliers.
Used for everyday goods or services that are easy to get, low risk, and purchased locally.
A formal, competitive process used for high-value or complex work.
Tenders are advertised publicly on QTOL.
Used under specific circumstances where there’s only one possible supplier.
These contracts include a list of approved suppliers that can be selected for future work. This helps speed up the procurement process.
Regions
We use regions to explain where a procurement activity takes place.
The Northern Territory Government's administrative regions include:
East Arnhem
Located in the far north-eastern part of the NT, this region includes East Arnhem Land, Groote Eylandt, Bickerton Island and Elcho Island.
Barkly
The Territory's third-largest region, extending along the Stuart Highway from Elliott to Tara and across to Queensland.
Big Rivers
The NT's second-largest region, stretching from the Joseph Bonaparte Gulf to the Gulf of Carpentaria.
Central Australia
The largest region in the Territory, with Alice Springs as its primary centre.
Top End
Encompasses the Tiwi Islands, Daly, and West Arnhem regions, extending from Wadeye to Maningrida.
Darwin, Palmerston and Litchfield
This area includes the cities of Darwin and Palmerston, the Litchfield Shire and areas like East Arm and Robertson Barracks.
Procurement rules and principles
Government buyers must follow a clear framework to ensure fair and transparent decisions.
This includes the:
- Procurement Act 1995 and Regulations
- NT procurement rules PDF (535.2 KB)
- NT procurement governance policy PDF (590.3 KB).
You can also read the previous procurement rules version 1.9 PDF (888.5 KB).
Buyers also follow key policies, including the:
You don’t need to know all these documents in detail, but understanding what buyers look for for can help you prepare stronger offers.
What we consider when buying
When we assess a quote or tender, we look at more than just price.
We also consider:
- your ability to deliver the work
- your past performance and relevant experience
- how your business supports local jobs, suppliers or subcontractors, and other activities that support the Territory
- Aboriginal participation, if applicable
- risk and safety
- innovation or technical merit.
These considerations form part of our Value for Territory approach, which supports economic growth and local benefit, not just the lowest price.
Next steps: Find opportunities
Now that you understand how we buy, the next step is to find opportunities to supply goods and services to government.