NSW Procurement reform

The NSW Government has reviewed, in consultation with agencies and other key stakeholders, its procurement operating model. Having regard to contemporary practice in other jurisdictions, both in the public and private sectors, it has implemented an overarching governance structure and operating framework for its procurement system that:

  • allows for contemporary means of sourcing government goods and services
  • brings the form and content of government contracts in line with modern practice
  • expands the ways that small and medium enterprises can effectively gain
    opportunities to supply goods and services to the government, and
  • introduces greater innovation into government procurement to stimulate a more
    vibrant New South Wales economy.

Sourcing and procurement is more efficient and effective if it is devolved to agencies that have specialist knowledge of the category supply chain and supply sector and that have proximity to both business requirements and the end-point of the supply chain.

Strategies for procuring goods and services are also more effective if developed by those with direct interests in the service delivery and financial outcomes.

Under the new operating model, sourcing and procurement strategies will be led by the best positioned government agency with the necessary specialist expertise in particular procurement categories. Where required, these lead agencies will operate on behalf of all government agencies.

Strategic Directions outline major actions being implemented under procurement reform.

The objectives of value for money, delivering quality government goods and services and aligning procurement with business needs, remain fundamental principles underpinning government procurement.

NSW Government procurement is governed by the requirements set out in Part 11 of the Public Works and Procurement Act 1912.

Strategic Directions

Actions implemented under the procurement reform program

Contract devolution

Information about contract devolution as part of the procurement reforms