What is Government Tendering?

Government tendering is the formal process by which public sector organisations — federal, state, and local — invite businesses to submit proposals (bids) to deliver goods, services, or works.

In Australia, governments are required by law to procure goods and services through an open, competitive process. This ensures transparency, fair competition, and value for money using public funds.

A tender (also called a Request for Tender, RFT, or Invitation to Tender) is the published notice that describes what the government needs, the evaluation criteria, and the deadline to respond.

Why does it matter?

Australian governments spend over $70 billion a year on procurement. This represents one of the largest and most stable revenue opportunities for businesses of any size — from sole traders to multinational corporations.

Unlike private sector sales, government contracts are publicly advertised, giving every eligible business an equal opportunity to compete.

Tender, quote, or expression of interest?

The words get used loosely, and the difference usually comes down to the value of the work and how much the buyer already knows about what they want.

• A quote (RFQ) is for lower-value work where the requirement is already clear. Often a few suppliers are approached directly, and the turnaround is short.
• A tender (RFT or ITT) is the full process: published openly, scored against stated criteria, with a formal deadline.
• An expression of interest (EOI) comes first when the buyer wants to see who is out there before writing the real specification. Getting through an EOI usually earns you an invitation to the tender, not the contract.

Who can bid

Almost any registered business, and the barrier is lower than most people assume. There is no minimum size, no requirement to have worked with government before, and no approved supplier list you have to buy your way onto.

What you generally do need: a registered entity and tax identifier, insurance at the level the contract specifies, and the ability to evidence that you have done comparable work. That last one is where most first-time bidders come unstuck, and it is a writing problem more often than an experience problem.

What the money actually looks like

Public procurement is not all mega-projects. The published contract record is dominated by work in the tens and hundreds of thousands, not the tens of millions, and a large share goes to small and medium businesses.

The other thing the record shows is repetition. Government buys the same categories on a cycle: cleaning, maintenance, IT support, consulting, training, civil works. A contract that closes this year is a signal about who will be buying again in three.

How it differs from selling to a business

Three differences matter in practice. The criteria are published in advance, so you know how you will be scored before you write anything. The process is documented, so a decision can be questioned. And the history is public, so you can see who won, what they charged, and when the contract ends.

That last point is the one most suppliers never use. Every awarded contract is a dated record of a buyer, a supplier, and a value. Read enough of them and you can work out which contracts are coming up for renewal before the tender is published.