Approved procurement arrangements for NSW Government agencies. These arrangements apply to procurement of any kind, including goods, services and construction, except as noted.
This Direction applies to the procurement of goods and services of any kind, including construction, by a government agency within the meaning of the Public Works and Procurement Act 1912 (the Act) except as noted. All values are exclusive of GST.
Requirements for goods, services and construction procurement
An agency must not split orders to avoid procurement threshold levels and/or governance requirements.
Use of whole of government contracts and prequalification schemes
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, directions or the Public Works and Procurement Regulation 2019. 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:
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 responsible Minister, Cabinet or any Cabinet Standing Committee
On 18 May 2021, the Minister for Finance and Small Business directed the NSW Procurement Board to require agencies to obtain approval from their responsible Minister, before entering into whole-of-government contracts, with the relevant Minister to make an assessment as to whether Cabinet consideration is necessary.
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 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.
If the procurement is covered by PBD-2019-05 Enforceable Procurement Provisions, the agency must comply with the enforceable procurement provisions.
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.
The government entity providing the goods and services (i.e. the supplier) should ensure its pricing and other terms and conditions are consistent with the competitive neutrality principles in the Treasury Policy and Guidelines Paper TPP02-1 Policy Statement on the Application of Competitive Neutrality.
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 – goods, services and construction
An agency that is accredited under the NSW Procurement Board’s Accreditation Program for Goods and Services Procurement or Accreditation Program for Construction Procurement may enter into an arrangement with a supplier for the procurement of goods and services consistent with its terms of accreditation.
Requirements for goods and services procurement only
Unaccredited agencies - goods and services procurement
An agency that is not accredited under the NSW Procurement Board’s Accreditation Program for Goods and Services Procurement may procure goods and services that are not available on whole of government procurement arrangements using the following methods.
These requirements do not apply to construction procurement.
Purchase from any supplier, subject to agency safety and infrastructure requirements and provided the rates are reasonable and consistent with normal market rates.
$10,000 - $30,000
Obtain at least one written quotation.
$30,000 - $680,000
Obtain at least three written quotations
Conduct an appropriate procurement process approved by the agency head or an accredited agency within the cluster.
Determine if the procurement is a covered procurement under PBD-2019-05 Enforceable Procurement Provisions and comply if required
Conduct a procurement process endorsed by an accredited agency within the cluster (preferred) or NSW Procurement.
A process diagram is attached.
Requirements for construction procurement only
Unaccredited agencies - construction procurement
The maximum value of construction work that can be undertaken by an agency that is not accredited under the Accreditation Program for Construction Procurement is $1.3 million.
Public Works and Procurement Act 1912 https://www.legislation.nsw.gov.au/#/view/act/1912/45
Who needs to know and/or comply with this?
- Advisory Entities (including Boards and Committees)
- Executive agencies related to Departments
- Separate agencies
- Statutory Authorities/Bodies
- Publishing Entity
- The Treasury
- Issuing Entity
- NSW Procurement Board