NSW Government procurement information

The NSW Government provides a framework for agencies to achieve value for money from their procurement activities whilst being fair, ethical and transparent. The following documents are relevant to all categories and steps within the procurement process.

Please note that these policies are currently under review as part of the NSW Government's procurement reform. For further information about current procurement policy, please contact the NSW Procurement Client Support Centre. Alternatively, if you are in a government agency, please contact your local Chief Procurement Officer.

Procurement Industry Advisory Group Expression of Interest for 2014

The Minister for Finance and Services invited applications from people in the private and non government sectors who wished to be considered for appointment as members of the NSW Procurement Board’s Industry Advisory Group.

The expression of interest is now closed. Applications will be evaluated and the results of the process will be communicated in the new year.

Procurement Policy

The NSW Government's policy for goods and services procurement is set out in the NSW Procurement Board's Procurement Policy Framework. This policy applies across all departments, statutory authorities, trusts and other NSW Government entities. State Owned Corporations under the State Owned Corporations Act are exempt although they are encouraged to adopt aspects of the Policy that are consistent with their corporate intent.

Currently the NSW Government's policy for construction procurement is set out in the NSW Treasury document, NSW Government Procurement Policy and Guidelines.  This policy is under review and will be replaced in 2014 by the Procurement Board.

Code of Practice for Procurement

The Code of Practice of Procurement and the related Implementation Guidelines cover all NSW Government procurement activities except for goods and services procurement. The Code outlines the philosophy, obligations and standards of behaviour applicable to all parties in the supply chain during the procurement process.

The Implementation Guidelines expand on key aspects of the Code of Practice for Procurement and should be read together with the code. References in the guidelines to the previous codes should be read as references to the new code, however section numbers are not consistent.

Prospectus of Savings Opportunities

The Department of Finance and Services is continuing to work with NSW Government agencies to identify new opportunities to leverage best value from NSW Government contracts and prequalification schemes. The Prospectus of Savings Opportunities was first published in 2012. The Prospectus has now been updated with current savings opportunities available to agencies, including specific action steps.

Strategies available to maximise savings from NSW Government contracts and schemes include:

  • Accessing negotiated rate reductions.
  • Transitioning to new, more favourable arrangements.
  • Participating in commitment strategies aimed at maximising aggregated opportunities.
  • Providing feedback to assist best utilisation of NSW Government contracts and schemes.

View the Prospectus of Savings Opportunities

Corruption prevention

A key reason procurement remains vulnerable to corruption is that the corruption controls of agencies often do not often extend beyond written documents and associated training. These are basic controls that agencies use to achieve consistency and quality in procurement by guiding compliance with predictable requirements. The challenge for managers is to maintain control of a situation even when it is unpredictable – and procurement, and certainly corruption, can sometimes be difficult to predict.

The Independent Commission Against Corruption (ICAC) has prepared a report that illustrates the variety of tools available to managers to influence the behaviour of their staff and to improve systems.

View the ICAC report: Corruption Risks in NSW Government - The Management Challenge (2011)

There are a number of policies and guidelines that assist buyers and suppliers undertake and complete procurement activity that is ethical. The Independent Commission Against Corruption website contains information to assist agencies and suppliers. Assistance is also available by contacting the Commission on 02 8281 5999 or 1800 463 909 (toll free) and requesting corruption prevention advice.

Privately financed projects

The Working with Government website provides a framework that enables both the public and private sectors to work together to deliver privately financed projects (PFPs) and support major infrastructure development in NSW.

Public disclosure and reporting

The NSW Government is committed to transparency in its tendering and contracting practices. Disclosure requirements for contracts are captured within the Government Information (Public Access) Act 2009.

View the M2007-01 Ministerial Memorandum and guideline

Projects of state significance

This guideline details the requirements to be met by NSW Government businesses, before they enter into binding commitments in relation to any projects of state significance (as defined in the guidelines).

View the Policy Paper TPP02-4

Sustainability

The NSW Government's sustainability policy sets targets and strategies for sustainable water and energy use, reducing greenhouse gas emissions, waste and fleet management and sustainable purchasing.

View the M2008-28 Ministerial Memorandum

Other government processes

 
In addition to the NSW Government procurement policies, the following processes should be considered as part of the overarching framework for undertaking procurement in NSW.

Engagement of NSW government agencies as service providers

The use of public sector expertise and resources to undertake work or a service, especially for simple low-risk procurement, is encouraged by the NSW Government. Any approved activity should be subject to value-for-money considerations.

Trade agreements

The NSW Government is a signatory to, or has agreed to participate in, a number of trade agreements that impact on government procurement. These include:

  • Australia-United States Free Trade Agreement
  • Australia-Chile Free Trade Agreement
  • Australian and New Zealand Government Procurement Agreement.

The obligations and requirements of these Agreements have been incorporated into various policies and guidelines, particularly the NSW Government Tendering guidelines.

View the M1998-07 Ministerial Memorandum

Asset and records management

Total Asset Management (TAM) aims to achieve better planning and management of the state’s physical assets. The TAM submissions provided by agencies are used in the development of the State’s 10 year Infrastructure Strategy.

Records management standards and practices

Actions and decisions need to be accounted for and, in particular, good record keeping of decisions is imperative for auditing and accountability purposes. Records are to be kept in accordance with government or agency requirements.