In determining how to approach the market, agencies must ensure that the method selected will achieve value for money and is fair and transparent. Additionally, agencies are required to ensure:
there will be maximum competition in the market
the conditions of participation in the process are clear and concise
potential suppliers have time and capacity to respond to requests to the market
that the conditions of participation do not directly preclude potential suppliers on the basis that they have not had prior experience supplying to government
material submitted by potential suppliers can be managed confidentially.
Further guidance on engagement methods is provided in the Market Approaches Guide. Complex Market Engagement Methods
At times a government agency may wish to use a market engagement method that has typically been characterised as 'complex' or higher risk than traditional methods of government procurement. These may include reverse auctions, direct negotiations, or managed services contracts. Specific requirements that apply to the use of these methods are available on ProcurePoint. Unsolicited proposals from the market are dealt with at www.nsw.gov.au/unsolicitedproposals.
Prior to adopting a complex market procurement method, agencies must:
ensure that the procurement strategy addresses in detail the justification and suitability of the selected procurement method. In the case of direct negotiations/sole sourcing arrangements, a comprehensive analysis of the market and all relevant factors should be undertaken to demonstrate that a competitive process does not need to be conducted
conduct a risk assessment for the procurement, including an assessment and treatment of procurement process risk arising from the use of the procurement method
follow internal delegations process, which will ordinarily involve obtaining the approval of the agency's Chief Procurement Officer, and in some instances also require the approval of a more senior person in the agency, depending on the nature or value of the procurement.
As a basis for approval agencies should, at a minimum, ensure compliance with these mandatory requirements. The approving officer must be satisfied that the government agency will satisfy its legislative and policy obligations in relation to the procurement.