Storage and management of the Commonwealth-owned stockpile of Technical Grade Urea (TGU)
Tender ID: 606889
Tender Details
Tender Description
The Australian Government is committed to keeping our economy moving and for our trucking and agriculture industries, this means having a reliable supply of DEF.
The Department, on behalf of the Commonwealth of Australia, will extend the government-owned 7,500 tonne TGU stockpile. The TGU stockpile was first established in December 2022, and a supplier was contracted to manage the purchase, storage and turnover of the stockpile. The contract with the current supplier is due to expire on 30 June 2026.
The stockpile was established to be stored domestically and made available for the production of DEF in the event of a national TGU supply disruption. The stockpile is only to be used in an emergency situation where stocks across the domestic industry are depleted.
Modern truck engines cannot operate without DEF. Ensuring DEF supply is critical to the operation of the Australian transport and logistics industry. Approximately 24 per cent of transport heavy vehicles require DEF to operate.
There is no production of TGU in Australia, and we are 100% reliant on imported TGU.
A strategic TGU reserve equivalent to five weeks' consumption of DEF provides certainty to market participants. The stockpile assists in preventing panic buying and hoarding caused by market uncertainty.
Additional funding was agreed to in MYEFO 25/26 to extend the stockpile to 30 June 2030.
Conditions for Participation:
The Potential Supplier (and any relevant potential subcontractors) holds all satisfactory and valid STRs required under Schedule 2 - Attachment 10: Shadow Economy Procurement Connected Policy – Statement of Tax Records.; and;
The Potential Supplier must be a single legal entity.
Timeframe for Delivery:
The Contract will be executed around 1 June 2026 in order for the Transition In period to commence immediately upon execution, followed by the ongoing services relating to the management of the Stockpile commencing on or prior to 1 July 2026 and continuing until 30 June 2030.
Address for Lodgement:
www.tenders.gov.au