This Direction deals with procurement of human services from non-government organisations (NGOs) by a government agency within the meaning of Public Works and Procurement Act 1912 (“Government Agency").
From 1 May 2017, Government Agencies may use the prescribed template NSW Human Services Agreement (Prescribed Template) when procuring human services from NGOs.
From 1 August 2017, the Procurement Board requires all Government Agencies to use the Prescribed Template when procuring human services from NGOs. Agencies will use the Prescribed Template as existing contracts expire.
The Prescribed Template must be utilised for NGOs engaged to deliver human services. It is designed to:
The Prescribed Template and this Direction do not apply to:
Agencies must seek approval to amend the Prescribed Template from its General Counsel (or external legal counsel) and its Chief Procurement Officer. Amendments are limited to those required to ensure the contract is fit-for-purpose for the contracted human services.
The CMWG is responsible for the ongoing administration of the Prescribed Template. Each year, the CMWG will require agencies to provide a list of amendments made in the previous 12 months. The CMWG will review the amendments and in consultation with Department of Education, Department of Family and Community Services and the Ministry of Health, these agencies will develop the Prescribed Template and recommend any changes to the Procurement Board. The Procurement Board will be responsible for approving the recommended changes.
The Department of Finance, Services and Innovation (DFSI), in conjunction with agencies that fund NGOs to deliver human services, will develop a new location-based reporting process to enhance service planning across NSW. NGOs will be consulted on the new reporting process.
The location-based reporting process will be developed whilst the Prescribed Template is implemented from 1 August 2017. Once the reporting process is established, agencies will require NGO service providers to report the:
This information will be provided to DFSI as an LGA Report as part of the quarterly reporting process for the Human Services Data Hub.
Agencies may on a case by case basis seek an exemption from this requirement from the Procurement Leadership Group, based on the nature of the services or the target group/service users. A clear basis must be established for an exemption to be considered, noting the fundamental importance of the reporting obligations to assist in the effective management of the State’s significant Human Services expenditure.
Agencies are responsible for monitoring NGO compliance with this requirement.
The Board recognises that increasingly procurements involve a mix of non-profit and for-profit providers. Whilst the Prescribed Template is for procurements by Government Agencies with non-profit organisations only, it may be used for human services procurement activities involving a mix of NGOs and for-profit organisations.
Agencies are required to use the NGO Registration Scheme – human services to source information from NGOs when preparing the Agreement (see PBD-2016-04-Accessing information about non-government organisations delivering human services).
The Direction will be reviewed after two years of operation.