Procuring Complex Goods & Services in NSW

 

Thursday, January 31st, 2019

As a professional project management consultancy, we specialise in complex Government procurement and supporting Government agencies achieve good purchasing outcomes by providing accurate and strategic advice.

Our approach to procuring goods and services for our Government clients aligns with Government policy and ensures that our activities to enable recommendation and engagement of suppliers are fair, ethical and transparent.

When NSW Government Agencies or Departments engage us to procure goods and services on their behalf, our activities are inherently bound by and conducted in accordance with the NSW Government Procurement Policy Framework.

The fundamental principles of our purchasing activities are to ensure that our procurement planning, execution and tender assessment activities achieve best value for money in supporting the delivery of our clients’ core business.

We’ve been responsible for assessing and recommending over $700m worth of strategic Government construction and infrastructure procurement at Federal, State and Local levels whereby our approach governed by mandatory legal, administrative and governance frameworks more specifically:

  • Public Works and Procurement Act 1912
  • Independent Commission Against Corruption Act 1988
  • Public Finance and Audit Act 1983
  • Government Information (Public Access) Act 2009.

Procurement Policy

Our NSW Government Clients are bound by the NSW Government Procurement Policy Framework, as our clients trusted advisors, we lead them through the complex but mandated compliance requirements which require accountability and conformance against the following policy:

  • Authority to Procure
  • Construction Policy
  • Procuring for and Agency / Whole of Government
  • Procurement Planning
  • Value For Money
  • Promotion of competition
  • Innovation
  • SMEs
  • Sustainable Procurement
  • Fairness & Probity
  • Market Engagement
  • Commercial approaches in Contracts
  • Standard Construction Templates
  • Advertising contracting opportunities and contract disclosure
  • Emergencies
  • Compliance & Monitoring
  • Conduct by Suppliers.

Achieving Value for Money

Ensuring taxpayer money is spent responsibly to achieve Value for Money (VFM) is essential for every Government and private client.  

Achieving Value for Money as a foundation principle and ‘Whole of Life’ consideration provides the basis of our tender assessment activity throughout our engagement with clients. The need to balance the desired qualitative and quantitative outcomes within strategic procurements is essential in achieving VFM. The method for achieving VFM should be documented within an approved Tender Evaluation Plan and furthermore demonstrated within the Tender Evaluation and Recommendation Report.  

The NSW Government defines VFM as the difference between the total benefit derived from a good or service against its total cost when assessed over the period the goods or services are to be used i.e.:

 

Value for money = Total lifetime benefit – total lifetime cost
 

It is essential that as members of tender assessment teams we identify benefits, costs and risks when determining whether a proposal provides good Value for Money. These considerations are:

  • Up-front benefits, costs and risks
  • After-purchase benefits, costs and risks
  • Fitness-for-purpose benefits, costs and risks.

When achieving VFM it is essential that our clients review and assess relevant financial and non-financial cost and benefits by considering the following:

  • Quality of the goods and services
  • Fitness for purpose of the proposal
  • Tenderer’s relevant experience and performance history
  • Flexibility of the proposal
  • Environmental sustainability of the proposed goods
  • Whole of life costs
  • Initial purchase price of the goods and services
  • Maintenance costs
  • Transition out costs
  • Licensing costs
  • Costs of additional features procured after the initial procurement
  • Consumable costs
  • Disposal Costs.

Further considerations

When dealing with complex and high valued procurements the procuring agency should have a developed approach to ensure procurement activity considers and:

Promotes Competition

Improves procurement outcomes through enhanced competition by facilitating access to NSW Government procurement business by the private sector, especially by small and medium enterprises (SMEs) and regionally-based enterprises.

Procures Sustainably

The requirement to balance economic, environmental and social considerations within the procurement process with the intent to minimise environmental impacts.
Eliminates Corruption by:

  • developing internal controls, including officer delegations and specific accountabilities
    publish data and performance reports (‘openness’)
  • monitor its compliance with law and policy and reporting
  • review policies every two years
  • refer to the management of procurement in corporate documents, such as codes of conduct
  • train relevant employees in the policy and procedures to ensure they are aware of their accountabilities
  • include procurement as a risk to be assessed in the agency’s internal audit and corruption risk management processes.

Having supported several Government departments to actively plan and implement Government procurement policy we are well positioned to support clients in navigating the complex world of Government procurement to ensure fair, ethical and transparent outcomes are achieved in line with taxpayers expectations.

To find out how we can support your organisation procure good and services contact us here.

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