Establishing a standing offer for provision of water market valuation services

The Department’s Water Purchase Team, in delivering water recovery programs, including the Bridging the Gap, 450GL water recovery and Aboriginal Water Entitlement Programs requires up-to-date market valuations for the range of water types in scope primarily to deliver environmental water requirements. The purchasing team provides the valuations team with specific requirements (water security type, catchment details and market context) for the Water Valuations Team to procure external, independent valuations. The Water Purchase Team uses the valuations as one input (of many) to determine value for money when deciding which water products to purchase and for what price.

Other business areas within the Department require water valuations to undertake their functions, including for compensation claims under section 77 of the Water Act 2007.

The Water Valuations Policy requires multiple, external, and independent valuations to be undertaken as the necessary expertise and experience is not available within the public sector. Procuring multiple, independent, external valuations also provides the additional benefit of mitigating probity risks and the perception that government is determining price ranges for water purchases without reference to contemporary market data.