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 Service Centre. Alternatively, if you are in a government agency, please contact your local Chief Procurement Officer (CPO).
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.
Sustainable procurement incorporates issues such as environmental management, ethical procurement and socio - economic benefits into the procurement process to help achieve the Government’s commitment to spend public money efficiently, economically and ethically.
View more information on Sustainable procurement
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.
View guidance on corruption prevention, fairness and probity
Code of Practice for Procurement
The Code of Practice of Procurement and the related Implementation Guidelines apply to construction 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 (PDF,108KB)
NSW Industrial Relations Guidelines: Building and Construction Procurement
The New South Wales Industrial Relations Guidelines: Building and Construction Procurement (the Guidelines) apply to building and construction companies that bid or tender for NSW Government infrastructure work.
The Guidelines reflect the NSW Government’s commitment to greater productivity within the State’s building and construction industry, and are designed to ensure that the NSW Government maximises value for money on its spending on infrastructure projects. In particular, the Guidelines are directed to supporting outcomes associated with compliance with the law, productivity, safety and freedom of association.
The Guidelines have been in force since 1 July 2013 and were originally referred to as the Implementation Guidelines to the NSW Code of Practice for Procurement: Building and Construction 2013.
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 (DOCX, 18KB) 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.
NSW Government Guide to Cost Benefit Analysis
Cost-benefit analysis (CBA) is an evidence based method for systematically organising and presenting information to help government understand all the impacts of policies and projects, including economic, social and environmental impacts. Agencies should use this NSW Treasury guide when assessing all significant government projects during the procurement planning phase.
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.
Market Approaches Guide
The guide builds on the NSW Government Procurement Policy Framework's principles-based approach to engaging suppliers and service providers. The guide replaces the Tendering Guidelines, the Selective Tendering Guidelines, and the Department of Finance, Services and Innovation Tendering Manual under the policy framework (which will be retained on ProcurePoint for archived reference purposes).
The guide assists agencies identify the approach to market that best fits their requirement, providing high level advice on the major types of approaches to market. The Guide also provides high-level advice on tendering periods , number of quotes or tenders, external involvement, disclosures, eTendering and procurement principles.
View the Market Approaches Guide (PDF, 603 KB).
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
Public Private Partnerships (PPPs) are one of the options the government uses to procure infrastructure. PPPs offer opportunities to improve services and achieve better value for money in the development of service based infrastructure.
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.
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 efficiency
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 M2014-08 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.
View the FTA website
Asset and records management
Capital planning (formerly known as Total Asset Management) is a strategic approach to physical asset planning. This approach involves an agency aligning its 10-year asset planning with its service delivery priorities and strategies, all in the limits of available resources. This approach allows us to achieve better planning and management of the State’s physical assets, both existing and planned.
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.
NSW Government Travel and Transport Policy
The Travel and Transport Policy, launched in March 2016, sets a modernised and flexible approach. It establishes a principles based policy that reflects the NSW Procurement Policy Framework. The policy encourages government travel resources to be viewed and utilised as strategic assets.
View the NSW Government Travel and Transport Policy (March 2016) (PDF, 160KB)