Premier
Category
Premier's Memorandum
Identifier
M2006-11
Status
Archived

M2006-11 NSW Procurement Reforms

Description:

This memorandum outlines initiatives to further improve procurement outcomes, get better value for taxpayers and reduce the operating costs of government.

Effective immediately, all agencies, other than State Owned Corporations, must use State Contracts Control Board whole-of-government contracts, where they are available, when procuring goods and services.

This memorandum applies to all Government agencies, including Statutory Authorities, Trusts and other Government entities, except for State Owned Corporations.

This memorandum should be read in conjunction with Treasury Circular TC 04/07 Procurement Policy Reform and Premier¡¦s Memorandum 2001-16 NSW Government Electronic Procurement Reform Implementation Strategy.

This memorandum outlines initiatives to further improve procurement outcomes, get better value for taxpayers and reduce the operating costs of government.

These initiatives are consistent with the objectives of the NSW Government Procurement Policy, and the aims of the NSW ICT Strategic Executive Plan that will be released shortly.

State Contracts Control Board Contracts
Effective immediately, all agencies, other than State Owned Corporations, must use State Contracts Control Board whole-of-government contracts, where they are available, when procuring goods and services.

This requirement extends the scope of the Public Sector Management (Goods and Services) Regulation 2000, which requires Schedule 1 agencies (as defined by the Public Sector Employment and Management Act 2002) to use State Contracts Control Board whole-of-government contracts.

Agency Accreditation Scheme for Goods and Services Procurement
The State Contracts Control Board will establish and operate an agency accreditation scheme for goods and services procurement. The scheme will apply to all agencies, other than State Owned Corporations, and be introduced by July 2007.

The purpose of the scheme is to manage risks and reduce costs by improving goods and services procurement practices in government agencies.

Based on their assessed procurement capabilities, agencies will be able to undertake different levels of procurement without assistance from the State Contracts Control Board. In developing the accreditation scheme the State Contracts Control Board will look to increase delegations to agencies in line with their capacity to manage procurement risk.

Electronic Procurement
This requirement extends Premier¡¦s Memorandum 2001-16, where Schedule 1 agencies (as defined in the Public Sector Employment and Management Act, 2002) are required to participate in the electronic marketplace.

As a first step, all major agencies (total expenses exceeding $400 million per annum), other than State Owned Corporations, will be required to implement electronic procurement of their goods and services by June 2007.

smartbuy, the whole of government electronic procurement service is established as the default electronic procurement system.

Agencies currently not using smartbuy„µ to support their purchasing processes can contact the Department of Commerce to initiate enrolment. If agencies wish to use another system, they must ensure that their proposed strategy accords with the NSW Government ICT Strategic Executive Plan and seek endorsement from the Government Chief Information Office.

Electronic tendering on the eTendering website
All agencies, other than State Owned Corporations, are required to make Requests for Tender documentation available and tenders able to be lodged through the NSW Government eTendering website by June 2007.

The eTendering website provides a single entry point through the NSW Government website to enable industry to obtain information on government business opportunities. Those agencies not currently using eTendering should contact the Department of Commerce to register for access.

The Department of Commerce will coordinate these initiatives. The Director General of the Department of Commerce will report and provide information and progress on the reform initiatives to the Chief Executives Committee. The Minister for Commerce will report to the Budget Standing Committee of Cabinet on progress in implementing these initiatives.

John Watkins MP
Acting Premier