Procurement Policy Framework

The December 2024 changes to the Procurement Policy Framework incorporate the following Board Directions and policies that have been approved since April 2024.

• The NSW Procurement Board approved PBD 2024-01 mandate for the publication of NSW Government supply opportunities on buy NSW. From 31 December 2024, all procurements (open and selective) where the total engagement exceeds the GIPA disclosure threshold of $150,000 (including GST) must be published on the buy NSW Tenders module. Agencies will have up to twelve months (no later than 31 December 2025) to comply with this direction.

• On 9 September 2024, the NSW Procurement Board issued PBD 2024-02 Increasing opportunities for local suppliers to supply to government. The Direction applies to all goods, services or construction valued $7.5 million or more (excluding GST). Agencies are required to check if any NSW-based suppliers can supply the needed goods or services, provide NSW-based suppliers with full and fair opportunity to participate in the procurement, and explain, when awarding the contract, why a local supplier was not chosen if there was one available. Agencies must report quarterly to the NSW Procurement Board on how they are implementing this direction.

• On 18 October 2024, the NSW Procurement Board approved amendments to the Enforceable Procurement Provisions Direction to implement a direction from the Minister for Domestic Manufacturing and Government Procurement issued on 3 September 2024. The amendments removed the clause prohibiting offsets and amended the clause prohibiting discrimination based on the origin of a supplier’s goods and services.
    
  The Direction was also updated to require procurement lists to remain consistently open to applications from new suppliers, rather than only allowing periodical applications. This requirement was approved by the Procurement Board in September 2023, however, covered entities were given twelve months to update existing procurement lists before its commencement.

• On 1 July 2024, the Department of Customer Service issued DCS-2024-04 Use of Artificial Intelligence by NSW Government Agencies. The Circular applies to projects using Artificial Intelligence (AI) with budgets over $5 million and projects funded by the Digital Restart Fund and is mandatory for all agencies using AI. Agencies must comply with the AI Ethics Policy and must use the AI Assessment Framework (AIAF) throughout all stages of their AI system lifecycle and conduct periodic reviews based on the risk of harm as determined by the AIAF.

Administrative updates to the framework are released quarterly to reflect new and revised requirements.

The Procurement Policy Framework sets the policy and operating framework for the NSW public sector procurement system.

The revised framework was published on 28 March 2024 and includes updates since April 2022:

• The amendments to recommended thresholds for construction consultancy and project management services contracts were updated on 15 July 2022.
• The revised NSW Public Private Partnership (PPP) Policy and Guidelines TPG22-21 came into effect on 1 October 2022, mandating agencies to consider using a PPP procurement approach where capital value is $200m or more (or high profile/high risk projects).
• PBD 2022-02: Engagement of Infrastructure Advisory Service Suppliers commenced on 1 November 2022.
• PBD-2022-03 Support for flood affected communities replaces PBD 2022-01 from 21 November 2022. The new PBD extends the application of the original direction to cover flood events in November 2022 and any flood event to 31 March 2023.
• 2021-03 Engagement of professional services suppliers, superseded PBD-2019-01 Engagement of professional services suppliers. PBD 2021-03 sets new requirements for suppliers outside the standard commercial framework.
• Prequalification Scheme SCM0053 Operational Telecommunications Services, Equipment and Infrastructure replaced ITS2573 Operational Telecommunications Services, Equipment and Infrastructure on 1 August 2023.
• PBD 2023-01 Skills, training, and diversity in construction replaced PBD-2020-03 on 2 August 2023.
• PBD-2023-03 Procurement opportunities for small (and medium) businesses commenced on 7 December 2023 enhancing existing measures for SMEs. The new direction updates the threshold for direct negotiation with small and medium businesses from $150,000 to $250,000 (excluding GST).
• PBD-2023-04 Mandated registration of all NSW Government suppliers on the buy.nsw Supplier Hub commenced on 21 December 2023. All businesses where total engagement exceeds the GIPA disclosure threshold of $150,000 must be registered on the buy.NSW Supplier Hub.
• PBD-2023-05 Engagement of professional service suppliers commenced on 21 December 2023 and clarified the difference between consultants and non-consultant professional services and requires agencies to report consultant engagement data to the NSW Procurement Board from January 2024.
• PBD-2023-06 Engagement of professional services suppliers through the Performance and Management Services Scheme, commenced on 21 December 2023. The Direction created new arrangements for the engagement of professional services, including consultants, through the Performance and Management Services (P&MS) Scheme SCM0005.
• Amendment to use of another agency’s contracts, panels or prequalification schemes muti-agency access (piggyback clauses) updated to exclude covered procurements under Enforceable Procurement Provisions ending 3 years after the commencement.
• PBD-2014-07 Recognising suppliers to the Australian Government was archived.
• The NSW Anti-slavery Commissioner released Guidance on Reasonable Steps to manage modern slavery risks in operations and supply-chains, effective from 1 January 2024.
• TPG22-04 NSW Government Business Case Guidelines replaced TPP18-06 NSW Government Business Case Guidelines in February 2023.
• TPG23-08 NSW Government Guide to Cost Benefit Analysis replaced TPP17-03 NSW Government Guide to Cost Benefit Analysis in February 2023 and includes guidance on carbon emissions.
• Updates to Aboriginal Procurement Policy to include reference to the reporting.buy.nsw portal and inclusion of Aboriginal businesses that are recognised by the Office of the Registrar of Indigenous Corporations.
• The Infrastructure Investor Assurance Framework was updated in December 2023.
• TPP20-08 Internal Audit and Risk Management Policy for the General Government Sector replaced TPP15-03 Internal Audit and Risk Management Policy for the NSW Public Sector effective 1 January 2021.
• DCS 2022-02 NSW Government Operational Communications Strategy replaced DFSI-2019-01 NSW Government Operational Communications Strategy.
• PBD 2014-06 Procurement of goods and services on behalf of other government agencies was archived.
• PBD 2014-07 Recognising suppliers to the Australian Government was archived.
• PBD 2016-04 Accessing information about non-government organisations delivering human services was archived.
• PBD 2017-04 Procuring human services from NGOs was archived.
• TPP22-12 NSW Gateway Policy replaced TPP17-01 on 28 March 2022.
• PBD 2023-02 - Interim approval process for engagement contracts with PwC was issued and archived in 2023.

For more information, contact the NSW Procurement Service Centre on nswbuy@treasury.nsw.gov.au or 1800 679 289.

Administrative updates to the framework are released quarterly to reflect new and revised requirements.

The Procurement Policy Framework sets the policy and operating framework for the NSW public sector procurement system.

The revised framework was published on 6 April 2022 and includes updates since August 2021:

• The amendments to PBD 2021-01 Support for Flood-Affected Communities came into effect in March 2022. NSW Government agencies must use Small and Medium Enterprises (SMEs) within the local communities impacted by the floods in March 2021, February 2022 and March 2022, wherever possible for repair, rebuilding, remediation, and enhancement works arising out of, in relation to or following those floods.
• Amendments to the Public Works and Procurement Act 1912 set an obligation for agencies to take reasonable steps to ensure that goods and services procured by and for government agencies are not the product of modern slavery. The NSW Modern Slavery Act 2018, commenced 1 Jan 2022, also sets out requirements regarding modern slavery. Modern slavery and procurement guidance is now available on buy.nsw
• PBD 2021-03 Engagement of professional services suppliers, superseded PBD-2019-01 Engagement of professional services suppliers. PBD 2021-03 sets new requirements for suppliers outside the standard commercial framework
• PBD 2021-04 Approved procurement arrangements, applicable from January 2022, superseded PBD 2020-04 Approved procurement arrangements. PBD 2021-04 adds the further approval requirements and provides an Exceptions Framework for agencies
• The ICT/Digital SME Procurement Commitments were updated in July 2021
• Construction contract resources and templates including General Construction (GC21), Minor Works (MW21), and Mini Minor Works (MMW) were amended
• TPP21-14: NSW Government Financial Risk Management Policy, applicable from January 2022, superseded TPP18-03 NSW Government Foreign Exchange Risk Policy. The policy sets out core financial risk management requirements
• The Office Furniture Scheme has been replaced with the Office Education Furniture Contract 771.
• Several guidelines have moved to a webpage format and are available on buy.nsw. The relevant document links have been updated.
• Complex Market Engagement Methods guidance has moved to a webpage format and is now titled Non-traditional and complex market approaches, available on buy.nsw.

Administrative updates to the framework are released quarterly to reflect new and revised requirements.

Administrative updates to the Procurement Policy Framework are released every 3 months to reflect new and revised requirements.

Administrative updates to the Procurement Policy Framework are released every 3 months to reflect new and revised requirements.

Administrative updates are released every 3 months to reflect new and revised requirements.

The Procurement Policy Framework sets the policy and operating framework for the NSW public sector procurement system.

The revised Framework was published on 1 July 2020 and includes administrative updates to reflect new and amended requirements released since March 2020:

• The new NSW Government procurement website, buy.nsw, went live in April 2020. All links now point to the new site.
• PBD 2020-01 Support for bushfire affected communities was amended on 4 May 2020 to include support for flood-affected communities.
• PBD 2020-02 Use of Procure IT Framework and increase of the threshold in Core& Contracts came into effect on 1 June 2020, replacing PBD 2018-02 Replacement of the ICT Short Form contract in Procure IT framework.
• PBD 2020-03 Skills, training and diversity in construction came into effect on 1 July 2020, replacing PBD 2017-05 Construction training and skills development.
• References to the "SME or Regional First" initiative in the SME and Regional Procurement Policy have been amended to reflect changes that provide additional support for drought-impacted regional businesses.
• New information on engaging social enterprises has been added.
• Infrastructure NSW released the revised Infrastructure Investor Assurance Framework in February 2020.
• ICAC released Supplier due diligence: a guide for NSW public sector agencies in June 2020.
• The Department of Customer Service archived DFSI Circular 2015-02 Efficient Electronic Payment Methods on 30 March 2020.

The next update to the Framework will be released on 1 October 2020.

The Procurement Policy Framework sets the policy and operating framework for the NSW public sector procurement system.

The updated Procurement Policy Framework was published on 1 April 2020 and includes administrative updates to reflect new and updated requirements released since December 2019:

• New editions of the Work, Health and Safety Guideline, Environmental Management Guideline and the Quality Management Guideline  that apply to construction procurement were released in December 2019
• Procurement Board Direction 2020-01 Support for bushfire affected communities was released in January 2020 and has been added to the list of board directions
• References to the Faster Payment Times Policy have been updated to reflect that payments of between $10,000 and $1 million to registered small businesses must now be made within 5 business days of receipt of a correctly rendered invoice
• The new Supplier Code of Conduct was released in February 2020 and replaces the Code of Practice for Procurement
• The Interactive Tendering Guidelines PDF were published by Infrastructure NSW in March 2020.

The next update to the Framework will be released on 1 July 2020.

The Procurement Policy Framework is updated every 3 months to include new and revised requirements.

The Procurement Policy Framework sets the policy and operating framework for the NSW public sector procurement system.

The updated Framework published on 9 October 2019 includes:

• references to the Public Works and Procurement Regulation 2019, which replaced the 2014 Regulation on 1 September 2019
• references to DFSI-2019-01 NSW Government Operational Communications Strategy, which replaced DFSI-2016-02 on 15 July 2019
• construction and demolition waste management requirements including compliance with the Protection of the Environment Operations Act 1997 and Standards for Managing Construction Waste in NSW (PDF), and guidance in the Construction and Demolition Waste Management Toolkit (PDF)
• PBD-2019-05 Enforceable Procurement Provisions, released 16 September 2019 prior to coming into effect 29 November 2019
• references to the Bid Cost Contributions Policy for construction projects valued over $100 million
• Government insurance requirements in TC12-12 Mandatory use of the TMF for all Government insurance requirements and TC16-11 Mandatory principal arranged insurance for all major capital works projects.

The next update to the Framework will be released on 29 November 2019, to coincide with the start date of PBD-2019-05 Enforceable Procurement Provisions.

The Procurement Policy Framework sets the policy and operating framework for the NSW public sector procurement system.

The revised Procurement Policy Framework incorporates all existing government policy and Procurement Board requirements for procurement.

The framework applies to all new government goods and services and construction procurement from 1 July 2019.

The overarching consideration for government procurement is ensuring best value for money.

All NSW government agencies, as defined in s.162 of the Public Works and Procurement Act 1912, must comply with the mandatory sections of the Framework. The Act excludes state-owned corporations, local councils and the Parliament of NSW.

The framework will be updated on a 3 monthly schedule as new policy requirements and Procurement Board Directions are issued. The next update will be released on 1 October 2019.