Part 11 of the Public Works and Procurement Act 1912 (PWP Act) provides the legislative framework for procurement across the NSW public sector. It creates the NSW Procurement Board. The Board can issue directions to agencies about the conduct of procurements or authorise them to carry out procurements, but does not have power to enter contracts.
The Board's objectives are set out in section 171 of the PWP Act, which are to:
develop and implement a government-wide strategic approach to
procurement ensure best value for money in procurement by and for agencies
improve competition and facilitate access to government procurement business by the private sector, especially by SMEs and regional enterprises
reduce administrative costs for agencies associated with procurement
simplify procurement processes while ensuring probity and fairness.
The PWP Act applies to all procurement by all agencies, excluding state-owned corporations (unless prescribed). Procurement has a broad end-to-end definition from 'needs identification' to 'contracting and placing orders'. It also includes procurement of goods and services (including construction) by or for an agency to either exercise statutory functions or pursuant to statutory powers of procurement.
Section 176 of the PWP Act places the following obligations on agencies:
exercise functions in accordance with Board policies and
Directions adhere to the principles of probity and fairness
obtain value for money in the exercise of procurement functions
provide information on procurement functions to the Board as requested.