Local Government (General) Regulation 2021

After considering the tender submissions for a proposed contract, the council must either—

accept the tender submission that, having regard to all the circumstances, appears to it to be the most advantageous, or

decline to accept any of the tender submissions.

A council must not accept a tender submission for a proposed contract if the tender submission is accompanied by an undertaking referred to in section 173, unless—

the council has consulted with each relevant registered organisation, and

each registered organisation is satisfied that appropriate industrial arrangements will be in place to ensure compliance with the undertaking during the life of the contract.

A council must ensure that every contract it enters into as a result of a tender submission accepted by the council is with the successful tenderer and in accordance with the tender (modified by any variation under section 176). However, if the successful tender submission was made by the council (as provided for in section 55(2A) of the Act), the council is not required to enter into any contract in order to carry out the requirements of the proposed contract.

A council that decides not to accept any of the tender submissions for a proposed contract or receives no tender submissions for the proposed contract must do one of the following—

postpone or cancel the proposal for the contract,

invite, in accordance with section 167, 168 or 169, fresh tender submissions based on the same or different details,

invite, in accordance with section 168, fresh applications from persons interested in making a tender submission for the proposed contract,

invite, in accordance with section 169, fresh applications from persons interested in making a tender submission for contracts of the same kind as the proposed contract,

by resolution of the council, enter into negotiations with any person (whether or not the person was a tenderer) with a view to entering into a contract in relation to the subject matter of the tender,

carry out the requirements of the proposed contract itself.

If a council resolves to enter into negotiations as referred to in subsection (3)(e), the resolution must state the following—

the council’s reasons for declining to invite fresh tender submissions or applications as referred to in subsection (3)(b)–(d),

the council’s reasons for determining to enter into negotiations with the person or persons referred to in subsection (3)(e).

In this section—

an organisation within the meaning of the Fair Work (Registered Organisations) Act 2009 of the Commonwealth, or

an industrial organisation of employees within the meaning of the Industrial Relations Act 1996.