A government agency (within the meaning of the Public Works and Procurement Act 1912) must use whole-of-government contracts for obtaining the goods or services to which those contracts apply. View the list of whole of government contracts.
On 16 July 2013 the NSW Procurement Board extended the obligation on agencies to use whole of government contracts to include the Contingent Workforce, Motor Vehicle Acquisition and ICT Services prequalification schemes. On 23 June 2014, the NSW Procurement Board further extended this obligation on agencies to include the Office Furniture Prequalification Scheme.
A government agency located in non-metropolitan areas can purchase goods and services valued up to $5,000 (including GST), from local sources, despite those goods and services being available on whole-of-government contracts, provided that the supplier’s rates for the goods or services are reasonable and consistent with normal market rates.
*“Non-metropolitan areas” is that part of the State that excludes the following local government areas: Ashfield, Auburn, Bankstown, Blacktown, Blue Mountains, Botany Bay, Burwood, Camden, Campbelltown, Canada Bay, Canterbury, Fairfield, Gosford, Hawkesbury, Holroyd, Hornsby, Hunters Hill, Hurstville, Kogarah, Ku-Ring-Gai, Lane Cove, Leichhardt, Liverpool, Manly, Marrickville, Mosman, Newcastle, North Sydney, Parramatta, Penrith, Pittwater, Randwick, Rockdale, Ryde, Strathfield, Sutherland, Sydney, The Hills, Warringah, Waverley, Willoughby, Wollondilly, Wollongong, Woollahra and Wyong.
‘Order splitting’ is inconsistent with the objectives of the procurement system and is prohibited. Agencies must not intentionally split purchase requirements into either components or a succession of orders for the same or similar goods and services for the purposes of enabling them to be obtained under this Direction.
Under the Local Schools, local decisions policy, principals of Department of Education and Communities (DEC) schools can purchase goods and services valued up to $5,000 (including GST), from any source (except excluded contracts, being those contracts on a list maintained by DEC as amended from time to time), despite those goods and services being available on specified whole of government contracts.
For more information, school principals should consult DEC’s website.
The NSW Procurement Board has agreed to trial the extent to which a single quote procurement process can encourage the growth of small businesses, especially those which are new to supplying to the NSW Government.
Accordingly, between 1 December 2014 and 31 December 2017 a government agency may purchase goods or services valued up to $30,000 (including GST) from a registered small business, despite those goods and services being available on whole of government contracts, provided that the supplier’s rates for the goods or services are reasonable and consistent with normal market rates.
A registered small business is a business which is registered with a NSW government agency under the government’s 30 Days to Pay policy.
The Office of the Small Business Commissioner, DFSI and agency CFOs are working to provide a consolidated list of registered small businesses across the NSW government sector on the ProcurePoint website. In the interim agencies using this trial to purchase goods or services valued up to $30,000 need to be satisfied that the supplier is a registered small business.
During the trial, small businesses may continue to register through the government agencies they are supplying goods and services to.
The Department of Finance, Services and Innovation will publish information about the numbers of registered small businesses and expenditure payment data throughout the trial period.
This Direction updates Direction 2012-02, issued by the NSW Procurement Board on 1 September 2012. The updated Direction takes effect from 1 October 2014.
On 17 September 2014 the NSW Procurement Board introduced the small business trial. On 23 November 2016 the Board extended the small business trial to 31 December 2017.