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).
Agencies are required to report consultant expenditure in accordance with the Annual Report Regulation 2015.
A consultant is defined as a person or organisation engaged under contract on a temporary basis to provide recommendations or professional advice to assist decision-making by management. Generally it is the advisory nature of the work that differentiates a consultant from other contractors.
Services provided under the NSW Government Legal Services Panel are excluded from the definition of a consultant for annual reporting purposes.
Standard commercial framework
A standard commercial framework applies to the Performance and Management Services Prequalification Scheme (PMS Scheme) engagement types 1 to 13, including the following elements:
The Procurement Board allows an agency to engage directly a single supplier that has accepted the standard commercial framework up to a value of $250,000 excluding GST for a single engagement. The PMS Scheme supplier list published by NSW Procurement on the ProcurePoint website specifies which suppliers have accepted the standard commercial framework.
Governance arrangements for non-compliant engagements
A more stringent approval process is required for each engagement that does not comply with any element of the PMS Scheme standard commercial framework, including any of the following scenarios:
Approval of non-compliant engagements require the following actions for each engagement:
Agencies must report any contract with a supplier that has not accepted the standard commercial framework, including contracts outside the PMS Scheme.
The following suppliers have not accepted the standard commercial framework:
The Executive Director NSW Procurement is authorised to add or remove suppliers from this list.
In 2017, NSW Procurement completed the Business Advisory Services (BAS) Program that defined a significantly improved commercial model for the PMS Scheme. The standard commercial framework commenced for major suppliers on 8 January 2018 and was progressively adopted by other suppliers during 2018.
The Board will report on progress to the Minister for Finance and Small Business every six months. This report will include a comparative analysis across clusters on trends in the number of engagements, total spend and other insights regarding professional services suppliers.
Tresaury provides cluster Chief Financial Officers and Chief Procurement Officers with online access to reports consolidating all engagements reported under this Board Direction.
This Direction takes effect from 26 March 2019 until withdrawn