As set out in the NSW State Plan, a key priority of the NSW Government is to improve employment opportunities for people with disabilities.

Consistent with this commitment, the Government has amended the Public Sector Management (Goods and Services) Regulation 2000 to allow NSW Government agencies to procure goods and services directly from disability employment organisations without the need for a competitive process. The exemption will cover organisations, approved by the Minister for Disability Services, that are focused on the provision of employment opportunities for people with a disability.

Notwithstanding Premier’s Memorandum 2006-11, NSW Government agencies can purchase goods and services directly from disability employment organisations without the need to purchase from State Contracts or to seek approval from the State Contracts Control Board.

State owned corporations are also encouraged to purchase goods and services from disability employment organisations.

A register will be maintained by National Disability Services (NDS) on behalf of the Minister for Disability Services of organisations covered by the new exemption. NDS can also provide advice and assistance to agencies on identifying appropriate disability organisations to fulfil government contracts. Further details are available at www.nds.org.au/procurement/nsw

It should be noted that key procurement principles, such as probity, value for money, and principles regarding direct negotiation, must continue to be observed. Contract disclosure requirements also continue to apply (see Premier’s Memorandum 2007-01).

Agencies are to undertake their own value for money assessment prior to purchasing goods and services from disability employment organisations, taking into account all factors relevant to the good or service being provided, such as:

• price including whole of life costs
• experience
• quality
• reliability
• timeliness
• delivery
• innovation
• product servicing
• fitness for purpose
• value adding components such as meeting the Government’s economic, social and environmental objectives where relevant.

Ministers are to ensure that all agencies support the implementation of this initiative and promote disability employment by encouraging the use of procurement from disability organisations.

For advice on the implementation of this initiative, please contact Mr John Ryan, Department of Human Services (Ageing, Disability and Home Care) on 8270 2082.

For advice on NSW Government procurement policy and on value for money, please contact Ms Sue Power, Treasury, on 9228 3950.

Kristina Keneally MP
Premier

This memorandum has not superseded any other memorandum.