---
title: "List the value-for-money factors and whether the economic-benefit rule applies"
url: "https://ailawframework.com/practice/government-procurement-and-tendering/list-the-value-for-money-factors-and-whether-the-economic-benefit-rule-a"
type: "task"
site: "AI Law Framework"
id: "A50-CO20261022-7"
practice_area: "Government Procurement & Tendering"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# List the value-for-money factors and whether the economic-benefit rule applies

> 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.…

Canonical page: https://ailawframework.com/practice/government-procurement-and-tendering/list-the-value-for-money-factors-and-whether-the-economic-benefit-rule-a  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Government Procurement & Tendering](https://ailawframework.com/practice/government-procurement-and-tendering.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| 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 / versions | 1 jurisdiction versions below |

## Checking plan

**Source-by-source verification**

The responsible lawyer checks each element against the source named for it.

- What the AI does: 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 does: 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.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court or regulator classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Do not treat the lowest price as the conclusion. Paragraph 4.5 says price is not the sole factor.
2. Apply the $1 million figure, or $7.5 million for construction, only after the Appendix A and standing-offer exceptions are marked.
3. 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.

## Notes

- 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.

## Sources

- [Department of Finance, value for money](https://www.finance.gov.au/government/procurement/commonwealth-procurement-rules/value-money) (checked 2026-10-22)
- [Department of Finance, exemptions from Division 2](https://www.finance.gov.au/government/procurement/buying-australian-government/procurement-practice/exemptions-division-two) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/government-procurement-and-tendering/list-the-value-for-money-factors-and-whether-the-economic-benefit-rule-a/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*