This Direction deals with procurement of services by or for a government agency within the meaning of the Public Works and Procurement Act 1912 (as amended).

From 31 January 2018 the Procurement Board requires an agency procuring any Business Advisory Services (BAS) as part of a high end strategy engagement, from a supplier listed below or where the engagement is operating outside the Business Advisory Services Commercial Framework to:

• have the Secretary or Executive Agency Head approve the engagement, but only once satisfied that work cannot be undertaken under the BAS Commercial Framework
• ensure engagements with suppliers who are non-compliant with the capped rates are competitively bid (with at least three bids) to ensure value for money, as there will be no threshold for direct engagement of suppliers who are non-compliant with the capped rates
• report information about the engagement upon approval through the Board’s Business Advisory Services Portal (previously the Major Supplier's Portal).

When engaging BAS Framework-compliant suppliers agencies should apply the relevant approvals and delegations set at their agencies or clusters (as appropriate).

The Board’s Business Advisory Services Portal enables government to better understand the types of engagements being procured outside the BAS Commercial Framework.

Business Advisory Services suppliers also have limited access to the portal to upload information.

The Board has published the list of non-compliant suppliers as part of this Direction. The Executive Director NSW Procurement has discretion to include additional suppliers or exclude suppliers from this list. 

This Direction applies irrespective of the procurement method by which the agency has engaged the supplier, and includes engagements undertaken through prequalification schemes or by tender.

This Direction takes effect from 31 January 2018 until withdrawn. The original Direction issued on 1 December 2015 has been amended to include the BAS Commercial Framework.

Context

The Board has adopted a relationship management framework covering the procurement of general consultancy services. The framework establishes appropriate governance mechanisms, while driving quality and the best possible value for money from engagements. The Board will report on progress to the Minister for Finance, Services and Property every six months. This report will include a comparative analysis across clusters on trends in the number of engagements, total spend and rating results, for each of the major suppliers.

This will assist agencies to gain a greater understanding of what is being procured from the consulting industry and how to access services, while all suppliers will benefit from more information about planned engagements. Agencies and suppliers will benefit from reduced red tape in the procurement process, though strengthened probity and contestability frameworks will be implemented progressively.

Senior representatives of the government will continue to meet with major suppliers of consultancy and other services to ensure that agency procurements are aligned with business needs and that agencies are achieving best value for money from those engagements, including sharing the outcomes of those engagements across agencies where it is appropriate.

The Department of Finance, Services and Innovation (DFSI) will publish negotiated harmonised daily capped resource rates and discounts (BAS Commercial Framework) for Business Advisory Services suppliers. In approving engagements, agencies should have regard to the BAS Commercial Framework and carefully scrutinise any request which is outside of these rates. Engagements that do not align with harmonised capped rates provided under the BAS Commercial Framework must be reported by agencies on the Business Advisory Services Portal.

The Board has published further guidance about the engagement and management of consultancies on the ProcurePoint website.

DFSI will provide cluster Chief Financial Officers and Chief Procurement Officers with monthly reports consolidating all engagements reported under this Board Direction.

DFSI has developed the Business Advisory Services Portal to enable agencies to lodge this information directly, and to view all non-compliant engagements from all agencies. The Quick 'How To' Guide gives guidance as to how to use the portal.

This Procurement Board Direction was updated by the board on 31 January 2018.

Listed non-compliant Business Advisory Services suppliers
 as at 31 January 2018 by Procurement Board

Boston Consulting Group

McKinsey & Company