How government buys
- We must consider 5 objectives every time we buy.
- We have different ways to buy, based on the type and value of the procurement.
- Most commonly, we use whole-of-government contracts and schemes. However, agencies often buy using their own arrangements too.
- We’ve made it easier to buy from small and medium enterprises (SMEs), regional and Aboriginal-owned businesses, and Australian Disability Enterprises (ADEs).
- We can also buy from any supplier when the contract is under $10,000, so long as we – and the supplier – meet certain standards.
Five objectives guide our procurements
When we buy any goods or services, we keep these 5 procurement objectives in mind. Select an objective to read more, or Expand all.
Our overarching consideration is always to deliver value for money.
This isn’t the same as simply buying at the cheapest price. We weigh up the lifetime benefit a contract will deliver and compare that to its overall cost.
We want all businesses to compete on a level playing field, regardless of their size or location.
Fair and open competition means more opportunity for you and better outcomes for the people of NSW.
We want to make it easy for every organisation to do business with government.
To help this happen, we’ve reduced red tape and increased our digital buying capabilities.
Innovation has the capacity to deliver more efficient outcomes and better value.
We encourage innovation during our procurements and as an outcome of every contract we award. We encourage suppliers to come to us with innovative solutions.
The way we buy can help make the NSW economy more vibrant and diverse, and help both businesses and communities flourish.
Procurement can be for all or just some agencies
There are different ways we buy from suppliers. This depends on the nature of the goods or services we need and the contract value.
NSW Government procurement arrangements include contracts and schemes. They can be either for the whole of government or specific to an agency:
These arrangements cover goods and services that many government agencies may want to access.
Examples: electricity supply, ICT devices, cleaning services, construction works.
Other eligible buyers (such as private hospitals, universities, local councils and non-profit organisations) can often buy from these arrangements too.
We use whole-of-government arrangements to drive economies of scale and maximise efficiency for both our suppliers and ourselves.
These arrangements are used when an agency has a specific need that is not met by a whole-of-government arrangement.
Examples: medical supplies, fire safety equipment.
Despite being specific to an agency, other NSW Government agencies may be able to access these contracts if they need to. We call this 'piggy-backing'.
Read more about contracts and schemes.
Exemptions make it easier to buy from certain businesses
To help us meet our economic and social objectives, we've made it easier for agencies to buy from certain businesses: