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Considerations for approaching the market

Make sure you're across these key considerations before you approach the market.
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What you need to know
  1. Make sure you're authorised to approach the market and that you know your likely maximum contract value (MCV).
  2. Familiarise yourself with the enforceable procurement provisions for your agency and MCV.
  3. Keep the NSW Government's 5 procurement objectives in mind.
  4. Consider other key factors such as ethical dealing, benefits and risks, your capacity to manage the procurement process and contract, and the potential impact to other NSW Government agencies.

Make sure you're authorised

To be authorised to approach the market, you need:

  • the appropriate accreditation level
  • approval from your financial delegate
  • an approved and adequate procurement budget
  • an approved strategy for approaching the market
  • arrangements in place to manage all stages of the procurement process and outcome.

Before you start, you'll need to know the likely maximum contract value (MCV) of the goods and services you're procuring.

Estimate your maximum contract value (MCV)

The maximum contract value (MCV) is your first consideration when requesting approval to approach the market. It's also a key factor in determining your market approach.

If your procurement will include multiple contracts, you must include the maximum value of all the proposed contracts combined.

Depending on the MCV and your agency's procurement processes, you'll be able to determine whether you need approval from your procurement head, agency head or another delegate.

You'll also be able to clarify whether your agency has the right level of accreditation or whether you need to seek assurance from another agency.

The MCV will also determine whether the Enforceable procurement provisions PBD 2019-05 apply. Enforceable procurement provisions (EPP) apply to procurements above certain thresholds, as outlined in the procurement board direction.

Know the key procurement objectives of NSW Government

Before you approach the market, make sure you understand the key procurement objectives outlined by NSW Government.

Include other key factors in your planning

Apart from our 5 procurement objectives, we encourage you to keep the following considerations in mind.

It goes without saying that your market approach must be consistent with both the law and NSW Government policy.

Read more about policies and guidance.

As a NSW Government agency, you’re obliged to always act transparently and ethically.

You must operate within a framework of probity and fairness. This includes disclosing any real or perceived conflicts of interest so that no one can ever legitimately accuse you of bias.

Read more about probity and fairness.

Traditional market approaches usually carry less risk than non-traditional or complex approaches. However, non-traditional approaches may lead to greater innovation in their solutions.

Read more about how to approach the market.

Every agency is responsible for its own procurement. Always consider your ability to manage your market approach and subsequent procurement process.

Read more about managing the procurement process.

Your approach to market can impact other agencies’ procurement processes, too. This is especially true if your procurement leads to a whole-of-government arrangement.

Read more about whole-of-government arrangements.

Determine how to approach the market

If you've addressed the considerations and principles on this page, it's time to determine how to approach the market.

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Maximum contract values or contract limits