This Policy Framework (the 'Framework') sets out the policy and operating framework for the NSW public sector procurement system, and provides a single source of guidance on the rules for procurement. It includes links to other relevant policies and material including standard form documentation.
The principles-based Framework has been developed by the NSW Procurement Board (the 'Board') in consultation with agencies for use by agencies and suppliers to government. Feedback is welcomed, and contact details are provided at the end of this document.
This Framework sets out mandatory requirements that must be followed by all agencies. It may be mandatory because it is the law1, or mandated at a policy level by government, the Board, or other administrators within government (for example, Treasury Circulars). References to the source or authority have been included.
The mandatory sections of this Framework are 'policy' for the purposes of section 176 of the Public Works and Procurement Act 1912, which requires agencies to exercise procurement functions in accordance with:
any policies and Directions of the
Board the terms of its accreditation
the principles of probity and
fairness. Agencies are also required to:
ensure that the agency achieves value for money in the exercise of its
functions provide information to the Board at its request
monitor compliance with this Framework.
Agencies should ensure that their procurement activities align with their business needs, and work towards service improvements. Agencies should also ensure that their internal policies and controls are consistent with any obligations under this Framework, including financial management obligations and policies relating to fraud and corruption control.
Under this Framework:
agencies are responsible for their own procurement, for compliance with procurement law and this Framework
accreditation is a key element in the devolution of responsibility
less red tape and prescriptive rules apply to procurement, and the requirements that do apply to procurement are principle-based
there is greater competition for supply to government, with small and medium enterprises (SMEs) in particular encouraged to participate in procurement processes
the default open tender model has been replaced with the option of using a broader range of procurement methods
the default long-term panel contracts, which lock out suppliers and innovation, are replaced with more flexible supplier arrangements, such as prequalified schemes and lists
government contracts for procurement are being brought in line with commercial and private sector standards
there is more effective planning for procurement through category management approaches and principles
probity and fairness are highly significant and essential elements of procurement, however they should not be used as a shield to stifle competition, value for money, or innovative outcomes.
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1Agencies should note that, for brevity, not all legislative obligations affecting the way an agency conducts procurement are repeated within this Framework. This Framework focuses on the legislative obligations in Part 11 of the Public Works and Procurement Act 1912, and references other key obligations such as those within the Public Finance and Audit Act 1983 and the Independent Commission Against Corruption Act 1988.