Maximum contract values or contract limits

Check your agency's maximum contract value (MCV)

Before going ahead with any procurement, you must make sure the contract is within the maximum contract value (MCV) your agency is allowed to pursue.

This will depend on the size and nature of the procurement and your agency’s accreditation level. There are 2 accreditation programs:

• accreditation for goods and services procurement
• accreditation for construction procurement.

Don’t split up contracts artificially to avoid these limits. You must take the whole procurement into account.

Calculate the MCV

The MCV is:

• the total value of the goods or services you’re procuring over the life of the contract
• the value of any options, extensions, renewals, or other mechanisms that may be executed during the life of the contract
• all remuneration payable by the agency, including fees, interest, commissions and premiums payable by your agency
• all revenue streams that may be covered by the proposed contract. For example, a contract to construct government-owned infrastructure may also grant the supplier the right to charge payment for use of the infrastructure, and control or manage its use (such as a road or bridge).

Procuring for an accredited agency

For goods and services procurement, there are 2 levels of accreditation with different maximum contract values (MCV). Read more about the levels of accreditation for goods and services procurement and what they mean for your authority to procure.

Construction services are subject to separate maximum contract values. Read more about accreditation for construction procurement.

Procuring for an unaccredited agency

Unaccredited agencies are authorised to procure low-value contracts, but will require assurance from an accredited agency or NSW Procurement for contracts of higher values.