Context

Departments are sometimes in receipt of a proposal that exhibits a high degree of innovation and uniqueness that could benefit the department. The receipt of an innovative proposal is often associated with an unsolicited approach to the department by a person or organisation with an ‘idea’.
The objectives of this policy are to:

• facilitate consideration of an unsolicited approach that may appear to be innovative and unique;
• establish clear requirements for determining if the proposal is innovative and unique; and
• detail procedures for the acceptance of the proposal having regard to the principle of value for money.

This policy relates to proposals estimated to cost in excess of $150 000 (see Open and Selective Tendering for purchases in excess of $150000* Policy)

Key Requirements

1. Initial Test for Innovation
A preliminary investigation is to be made to ascertain:

• if there are any similar products or services available from the market; and
• whether there is a potential need for the proposal.

2. Actions Required by the Department to Progress an Innovative Proposal
The Department must:

• be satisfied that the proponent of the proposal can demonstrate innovation, i.e. that there is no apparent similar product or service available from the market;
• obtain from the proponent a clear statement of the intellectual property inherent in the proposal;
• if applicable, receive from the proponent permission to ‘test’ the proposal on-site within the operating environment of the department;
• enter a Deed of Confidentiality with the proponent in relation to information held or made available by the department (of particular importance when ‘testing’ the proposal within the department’s operating environment);
• receive from the proponent formal acceptance that there is no obligation on the department to proceed with the purchase, adoption, installation or use of proposal after this initial consideration.

3. Preparation of a Business Case
A business case must be prepared by the department to justify proceeding with the proposal having clearly identified the intellectual property of the proposal and compatibility with the operating environment of the department.

4. Application of Standard Purchasing Processes
Standard purchase processes apply to:

• proceeding with a public tender if the investigation identifies a need that is available from the open market, or obtaining a waiver from market testing.

Other Requirements

Monitoring Australian Customs Services Notices

• Where there is a significant price difference between local and overseas sourced products, departments must refer to the Australian Customs Services Notices.

Related VGPB Policy And DTF Guidelines

Open and Selective Tendering for purchases in excess of $150000* Policy
Disclosure of Contracts >$100000* Policy

Related DTF Templates and Forms

Nil

Links to Relevant Policy Websites

Nil

Version Control Information

Version Number	2
Release Date	December 2002
Further Information	Strategy and Policy, Government Services Division, Department of Treasury and Finance
Phone	(+613) 868 32944
Email	vgpb@dtf.vic.gov.au