Application

This Direction applies to the procurement of all goods and services, including construction, in response to the NSW floods in March 2021, February 2022 and March 2022.

Direction

All NSW Government agencies must give first preference to appropriate Small and Medium Enterprises (SME), based in the local government area (LGA) where possible, when engaging suppliers to conduct repairs, rebuilding, remediation and enhancement works, or to supply associated goods or services arising out of, in relation to or following the floods in March 2021, February 2022 and March 2022. If no appropriate SME can be identified to complete the work within a reasonable timeframe in the LGA, then another suitable SME from regional NSW may be used.

For procurements in areas bordering other States and Territories, agencies may use their discretion in seeking quotes from any suitable supplier.

If an agency is engaging a head contractor to undertake a project or program of works, the agency should wherever possible, contractually require the head contractor to first consider SMEs in the LGA to deliver associated goods or services.

The underlying principles of value for money and probity must be maintained in applying this direction, with engagements subject to appropriate due diligence and adequate supplier performance. Suppliers must demonstrate they have the experience and capability to fulfil the contract and manage relevant risks, including work, health and safety risks.

Evaluation

Agencies should ensure that they maintain information about procurements covered by this Direction and the outcomes achieved in supporting local businesses. This information will assist the Board to evaluate the effectiveness of the Direction.

Definitions

Small and Medium Enterprise (SME) is defined as an Australian or New Zealand firm with fewer than 200 full-time equivalent employees.

Procurement process

Procurements covered by this direction are exempt from using whole of government contracts and mandated prequalification schemes, including the Prequalification Scheme for General Construction Work up to $1 million (ex GST).

Context

In March 2021, February 2022 and March 2022, floods devastated many areas of NSW. The Minister for Finance and Employee Relations, the Hon Damien Tudehope MLC, and the NSW Procurement Board have issued this direction to assist the economic recovery in flood affected areas by ensuring that flood recovery funds support local SMEs where this is achievable.