This Direction applies to the procurement of all goods and services, including construction, 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 exclusive of GST.

Order splitting

An agency must not split orders to avoid procurement threshold levels and/or governance requirements.

Use of whole of government contracts

A government agency must use whole-of-government contracts for obtaining the goods or services to which those contracts apply, except where specific exemptions are provided by Procurement Board policies or the Public Works and Procurement Regulation 2014. View the list of whole of government contracts.

A government agency must also use the following whole of government prequalification schemes to obtain the goods or services to which those schemes apply:

• Contingent Workforce

• Financial Services Prequalification Scheme (as required by PBD-2013-01C Financial assessments), unless the agency undertakes its own financial assessments of suppliers

• ICT Services

• Motor Vehicle Acquisition

• Office Furniture Prequalification Scheme

• Operational Telecommunications Equipment, Infrastructure and Services (as required by DFSI-2016-02 NSW Government Operational Communications Strategy)

• Prequalification Scheme for General Construction Works when procuring construction work valued up to $1 million covered by the categories in the scheme (as required by PBD-2014-04C), except

  • if the agency issues an open tender, or

  • if the agency engages a local contractor for a one-off contract valued under $30,000 and formally invites the contractor to become prequalified.

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, Board Directions and other policies of the Board to the extent they are consistent with the Cabinet decision, including the need to achieve value for money.

Procurement valued up to $10,000

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 $10,000 even if the goods or services are available on whole of government procurement arrangements. The procuring agency should ensure the rates are reasonable and consistent with normal market rates.

Accredited agencies

An agency that is accredited under the NSW Procurement Board’s Accreditation Program for Goods and Services Procurement, the Agency Accreditation Scheme for Procurement or the Agency Accreditation Scheme for Construction 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 Accreditation Program for Goods and Services Procurement may enter into an arrangement with a supplier for the procurement of goods and services that are not available on whole of government procurement arrangements, using the following methods. These provisions do not apply to the procurement of construction.

A process diagram is attached below.

Procurement of construction services by unaccredited agencies is addressed in Procurement Board Direction PBD-2014-03C Agency Accreditation Scheme for Construction- threshold for unaccredited work.

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 2019-04 applies from 01 July 2019 until it is revoked.