Premier & Cabinet

Type:
Premier's Memorandum
Identifier:
Status:
Active

M2014-11 Additional Evaluation Criteria for Procurement of Major Projects Valued Above $100 million

Description

The NSW Government has developed additional evaluation criteria for the procurement of major projects valued above $100 million. Tenderers will be evaluated on their ability to work effectively with government and contribution to skills and apprenticeship targets.

Detailed Outline

NSW is delivering a record infrastructure program across the State. In order to manage risks and maximise benefits, additional criteria will be considered during the procurement evaluation process. Tenderers will be evaluated on their:

a) demonstrated ability to work effectively with government; and

b) ability to support the Government’s skills and apprenticeship targets.

a) Working with Government

The NSW Government Procurement Policy establishes potential criterion for tender evaluations, including the previous performance of a tenderer. For projects valued above $100 million, this is a mandatory criterion. Tenderers will be required to demonstrate their capacity for successful collaboration with the NSW Government by providing the details of two appropriate referees.

Referees will be asked to verify past performance, confirming that tenderers have the ability to achieve outcomes, the extent of any legal and contract disputes, and demonstrated commitment to working constructively with the NSW Government to resolve commercial issues.

In the event that a tenderer has not previously worked for the NSW Government, tenderers should provide the details of two referees from organisations they have contracted within the past five years, preferably for works greater than $100 million. The referees must be at the level of a chief executive officer or executive director, with the ability to comment on the tenderer's history of legal and contract disputes, and ability to work constructively to resolve commercial issues.

This process is designed to confirm past performance with government only and will not be used to prevent new entrants into the market. The Government seeks to encourage new participants into the market, and will apply this policy with that aim in mind.

Existing agency held performance data on collaboration with Government will also be considered.

b) Apprenticeship targets

On 4 June 2014, the Premier announced that at least 1,000 apprentices will be employed to help NSW deliver its record infrastructure program. To assist the Government achieve this goal, tenderers will be required to demonstrate a commitment to the employment and training of apprentices.

Minimum requirements for apprenticeships will be set by the Government on a project by project basis, with partnerships with local vocational and tertiary institutions also encouraged.

Tenderers are to provide advice on how they will leave a lasting skills dividend for local communities, including information on the proposed number of apprenticeships, training outcomes and performance targets that can be monitored and evaluated.

Tenderers will be required to address the additional criteria in their tender documents.

Reporting and Compliance

When agencies seek approval to award a contract for a major project, the relevant Cabinet Minute is to outline:

1) the outcomes of the assessment of the tenderer's past performance in working collaboratively with Government

2) how the tenderer intends to contribute towards the employment of apprentices and leave a lasting skills legacy

3) the measures to assess progress against apprenticeship targets.

Post-contract award, the delivering agency will be required to collect information and report to Infrastructure NSW on how tenderers are meeting training and apprenticeship targets.  This will form part of Infrastructure NSW's two-monthly report to the Cabinet Standing Committee on Infrastructure.

 

Overview

Compliance

Mandatory

AR Details

Date Issued
Nov 18, 2014
Review Date
Nov 18, 2019
Replaces
Replaced By

Contacts

Contact
Contact us
Phone
02 9228 5555
Publishing Entity
Department of Premier and Cabinet
Issuing Entity
Premier