List the value-for-money factors and whether the economic-benefit rule applies
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the procurement brief, copy the estimated value, whether it is construction services, and whether it is covered by Appendix A or is a procurement from a standing offer. List the cost and benefit headings the evaluation record already uses. Do not score the submissions and do not decide that value for money is achieved.
- What the lawyer must review
- The lawyer decides whether the procurement achieves value for money. Paragraph 4.4 says officials must be satisfied, after reasonable enquiries, that the procurement achieves a value-for-money outcome. Paragraph 4.5 says price is not the sole factor. The official must consider the relevant financial and non-financial costs and benefits of each submission, including quality, fitness for purpose, the potential supplier's relevant experience, performance history and ethical conduct, flexibility including innovation and adaptability over the lifecycle, environmental sustainability such as energy efficiency, climate change impact, environmental impact, circularity and use of recycled products, and whole-of-life costs. Paragraph 4.6 lists whole-of-life costs as the initial purchase price, maintenance and operating costs, transition-out costs, licensing costs when applicable, the cost of additional features procured later, consumable costs, and decommissioning, remediation and disposal costs including waste disposal. Paragraph 4.7 requires officials, in addition, to consider the economic benefit to the Australian economy for a procurement above $1 million, or $7.5 million for construction services, except a procurement covered by Appendix A and a procurement from a standing offer. Paragraph 4.8 says that policy operates within the agreements to which Australia is a signatory, including free trade agreements and the Australia and New Zealand Government Procurement Agreement. The exemptions page says an exempt procurement remains subject to Division 1, especially value for money. The Sustainable Procurement Guide named in the footnote was not opened.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the procurement brief, copy the estimated value, whether it is construction services, and whether it is covered by Appendix A or is a procurement from a standing offer. List the cost and benefit headings the evaluation record already uses. Do not score the submissions and do not decide that value for money is achieved. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Do not treat the lowest price as the conclusion. Paragraph 4.5 says price is not the sole factor.
- Apply the $1 million figure, or $7.5 million for construction, only after the Appendix A and standing-offer exceptions are marked.
- Do not write an economic-benefit method. Paragraph 4.7 requires the consideration. It does not set a formula on the page that was opened.
Sources
- Department of Finance, value for money · 2026-10-22
- Department of Finance, exemptions from Division 2 · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.