New South Wales Procurement Board

Type:
NSW Procurement Board Direction
Identifier:
PBD 2020-04
Status:
Active

PBD 2020-04: Approved procurement arrangements

Description

Approved procurement arrangements for NSW Government agencies. These arrangements apply to procurement of any kind, including goods, services and construction, except as noted.

Function and Subject

(2)
Procurement
Procurement (2)
Acquisition

Detailed Outline

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

Order splitting

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:

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 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.

Value

Process

<$10,000

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

or

Conduct an appropriate procurement process approved by the agency head or an accredited agency within the cluster.

≥$680,000

Determine if the procurement is a covered procurement under PBD-2019-05 Enforceable Procurement Provisions and comply if required

and

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.

Act

Public Works and Procurement Act 1912 https://www.legislation.nsw.gov.au/#/view/act/1912/45

Overview

Who needs to know and/or comply with this?

Advisory Entities (including Boards and Committees)
Departments
Executive agencies related to Departments
Separate agencies
Statutory Authorities/Bodies

AR Details

Date Issued
Oct 1, 2020
Review Date
Sep 30, 2023
Replaces
Replaced By

Contacts

Contact
https://buy.nsw.gov.au/
Phone
1800 679 289
Publishing Entity
The Treasury
Issuing Entity
New South Wales Procurement Board