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.
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.
The NSW Government's policy for procurement is set out in the NSW Government 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.
Value for money
The overarching requirement for procurement is that a government agency achieves value for money in the exercise of its functions. The Statement on Value for Money assists decision makers to make informed and supportable decisions about value for money.
View the Statement on Value for Money
Promotion of competition
Effective competition leads to greater efficiency and innovation in procurement. Agencies must act in a manner which promotes competition principles in the Statement on the promotion of competition.
View the Statement on the Promotion of Competition
Corruption prevention, fairness and probity
Government has an obligation to ensure its procurement conduct is at all times fair, ethical, transparent and probity rich. This includes use of probity advisory and probity audit services.
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.
- Code of Practice for Procurement - current issue dated 18 January 2005:
applies to procurements for which tenders close on or after 1 February 2005
- Log of revisions to original code
- Code of Practice for Procurement first issue dated 1 July 2004:
applies to procurements for tenders closed up to and including 31 January 2005
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.
The NSW Procurement Board’s responsibilities under the Public Works and Procurement Act 1912 includes investigating and dealing with complaints about the procurement activities of government agencies.
The Board approved the Guidelines for Managing Procurement Complaints to take effect from 1 July 2013. The Guidelines reflect the expanded and devolved procurement responsibilities of agencies.
Agencies have a responsibility to resolve complaints concerning their procurement actions at the appropriate agency level (usually commencing at the area undertaking the procurement), escalating as necessary and referring to external statutory bodies as appropriate.
Complaints unresolved at the conclusion of this process can be referred to the Procurement Board. In this instance copies of all correspondence with the agency concerned and all other relevant material need to be provided.
The Procurement Board will review the material and information supplied by the complainant and the agency before making any decision to investigate a complaint. Where the Board considers the agency has dealt with a complaint in an appropriate manner, it will decline to investigate separately.
If a complainant submits a complaint to the Board prior to complaining to the relevant agency or where the agency is still considering the complaint, the Board will refer the complainant to the agency concerned.
Agencies which are considered not to have complied with the requirements will be required to take corrective action in relation to future procurement action. The Board may issue directions and policies regarding corrective action.
Prospectus of Savings Opportunities
The Office 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 been updated with 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
Benefits realisation management framework
The Benefits Realisation Management Framework provides a framework of best practice principles and concepts in setting up, managing programs and benefits realisation across NSW agencies.
The Guidelines provide agencies with a structured approach to planning and implementing tendering and associated processes. Agencies may require more detailed procedures for specific agency tendering activities.
View the Tendering Guidelines
The Guide for Submission and Assessment of Unsolicited Proposals outlines a transparent and streamlined approach that is facilitating the NSW Government and private sector working together to develop and deliver innovative ideas.
View the Unsolicited Proposals Guidelines
Treasury Managed Fund
Mandatory use of the Treasury Managed Fund (TMF) for all government insurance requirements. The TMF provides member agencies with unlimited cover worldwide.
View the Treasury Circular TC12-12
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
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
Government Resource Effeciency
The NSW Government's resource efficiency policy (GREP) sets targets and strategies for water, waste and air emissions. This includes using its purchasing power to drive down the cost of resource efficient technologies and services.
View the M2008-28 Ministerial Memorandum
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.
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.