Determining the market approach
Once the school has estimated a budget, schools can determine the total cost of the contract (the entire contract, including extension options, not year by year) to ensure that they follow the correct procurement process, as per the department’s Procurement policy.
Each procurement threshold has a corresponding minimum requirement for market engagement. This means that depending on the estimated total contract cost, schools must seek the following minimum number of quotes:
- less than $2,500 = one quote (either verbal or written)
- more than $2,500 and less than $25,000 = one written quote
- more than $25,000 and less than $150,000 = 3 written quotes
- $150,000 or more = tender process.
The procurement threshold is the value of the entire contract (including any additional year options).
Example: A school estimates their cleaning services costs will be approximately $40,000 (GST inclusive) per year. The school is seeking a 3-year contract with 2 × 12-month options. The estimated cleaning contract value will be $200,000. As this falls in the procurement threshold of more than $150,000, the school is required to undertake a tender process.
For more information, including a full list of templates and forms available against each threshold, please refer to the Procurement – Schools policy and the Schools procurement procedure (PDF) (staff login .
Schools that wish to undertake a different market approach must have a valid justification and seek appropriate approvals first. Please refer to the different market section for more details.
Considerations for multi-campus schools
Procurement thresholds apply to multi-campus schools, with the larger budget including all campuses. Multi-campus schools can choose to use the same service provider or different ones for each site.
Reviewed 13 March 2026