New South Wales Procurement Board
Category
NSW Procurement Board Direction
Identifier
PBD-2016-01
Status
Archived

PBD-2016-01-Approved procurement arrangements from 1 July 2016

Description:

Defines approved goods & services procurement arrangements for NSW Government agencies commencing 1 July 2016.

This Direction applies to the procurement of all goods and services by a government agency within the meaning of the Public Works and Procurement Act 1912 (the Act) except as noted. Unless specified otherwise, values are inclusive of GST.

Procurement approved by Cabinet or any Cabinet Standing Committee

Where the procurement of goods and services by an agency has been considered and approved by Cabinet or a Cabinet Standing Committee, this Board Direction does not apply to the extent of any inconsistency. This includes where Cabinet or a Cabinet Standing Committee approves the undertaking of a procurement process to implement its decision.
In undertaking the procurement approved by Cabinet or a Cabinet Standing Committee, the agency head is to have regard to the Procurement Policy Framework when conducting the procurement (for example, when selecting the method of procurement).

Procurement valued up to $5,000

Unless an agency has specific requirements related to safety and infrastructure, any agency may enter into an arrangement with any supplier for the procurement of goods and services valued up to $5,000 even if the goods or services are available on whole of government procurement arrangements.

Accredited agencies

An agency that is accredited under the NSW Procurement Board’s Agency Accreditation Scheme may enter into an arrangement with a supplier for the procurement of goods and services consistent with its terms of accreditation.

Unaccredited agencies

An agency that is not accredited under the NSW Procurement Board’s Agency Accreditation Scheme may enter into an arrangement with a supplier for the procurement of goods and services using the following methods:

  • Procurements over $5,000 and up to $30,000: an unaccredited agency may procure goods and services valued over $5,000 and up to $30,000, which are not available on whole of government procurement arrangements, subject to seeking at least one written quotation.

  • Procurements over $30,000 and up to $1,000,000: an unaccredited agency may procure goods and services valued over $30,000 and up to $1 million, which are not available on whole of government arrangements through a competitive procurement process, which may be achieved through:

          - at least three written quotations, or

         - where agreement to the procurement approach has been obtained from an accredited agency within the agency’s cluster or from NSW Procurement within DFSI.

  • Low risk procurements over $1 million: an unaccredited agency may conduct a procurement of goods and services valued over $1 million, which are not available on whole of government arrangements and which are assessed by the agency head (or delegate) as being low risk, subject to conducting a competitive procurement process endorsed by an accredited agency within the cluster, NSW Procurement or an independent person appointed by the agency head.

  • High risk procurements over $1 million: an unaccredited agency may conduct a procurement of goods and services valued over $1 million, which are not available on whole of government arrangements and which are assessed by the agency head (or delegate) as being high risk, subject to submitting full details of the proposed competitive procurement process to NSW Procurement for approval.

Assessment of low risk and high risk procurements over $1 million

In assessing whether a procurement is low or high risk, the agency head (or delegate) of an unaccredited agency needs to consider factors relating to the procurement, including:
• nature of the goods or services being procured
• whether the goods or services being procured are also purchased by other agencies within the cluster
• the agency’s experience in procuring goods or services of this nature
• the agency’s experience in conducting competitive procurement processes of the type planned
• capability of the market to respond to any specific requirements of the procurement
• other circumstances considered by the agency head to be unique.
In assessing the monetary value of any procurement, it is the estimated value over the proposed term of the acquisition and not a value per annum.

Supply by government entities

An agency may obtain goods or services directly from any government entity that provides those goods or services in the exercise of its principal functions consistent with the competitive neutrality principles in the Treasury Policy and Guidelines Paper TPP02-1 Policy Statement on the Application of Competitive Neutrality.

Direction 2016-01 applies from 1 July 2016 until it is revoked.