Chapter 7 Procurement of goods and services
In this Chapter:Board means the New South Wales Procurement Board established under section 137.
Board direction means a direction issued by the Board under section 148.
goods and services means goods and services of any kind.
government agency means any of the following:
(a) a public sector agency (within the meaning of this Act),(b) a NSW Government agency,(c) any other public authority that is constituted by or under an Act or that exercises public functions (other than a State owned corporation),(d) any State owned corporation prescribed by the regulations.government agency employee means a person employed in or by a government agency.
government agency head means the person who is the chief executive officer, or who exercises the functions of chief executive officer, of a government agency.
procurement of goods and services means the process of acquiring goods and services by:
(a) identifying the need to purchase goods and services, and(b) selecting suppliers for goods and services, and(c) contracting and placing orders for goods and services,and includes the disposal of goods that are unserviceable or no longer required.
(1) This Chapter applies to the procurement of goods and services by or for a government agency, which includes:(a) the procurement of goods and services required by a government agency to exercise its statutory functions, and(b) the procurement of goods and services by a government agency pursuant to the agency’s specific statutory powers of procurement.(2) This Chapter does not apply to the procurement of goods and services by or for:(a) a local council or other local authority, or(b) the Parliament of New South Wales.
Part 7.2 NSW Procurement Board
137 Establishment of NSW Procurement Board
(1) There is established by this section the New South Wales Procurement Board.(2) The Board is a NSW Government agency.(3) The Board has the functions conferred or imposed on it by or under this or any other Act.
(1) The Board is to consist of the following members:(a) the Director-General of the Department of Finance and Services,(b) the Division Heads of at least 6 of the Divisions of the Government Service specified in Division 1 of Part 1 of Schedule 1, being the Divisions determined by the Minister from time to time.(2) The Director-General of the Department of Finance and Services is to be the Chairperson of the Board.(3) Schedule 2C contains ancillary provisions relating to the members and procedure of the Board.
(1) The Board is subject to the direction and control of the Minister in the exercise of its functions.(2) Without limiting subsection (1), the Minister may direct the Board to comply with a specified Government-wide procurement policy.(3) A copy of any direction given by the Minister to the Board under this section is to be included in its annual report for the year in which the direction was given.
(1) The Board may establish subcommittees to assist the Board in connection with the exercise of any of its functions.(2) The subcommittees may have members who are not members of the Board.(3) The procedure for calling meetings of a subcommittee and for the conduct of those meetings is to be as determined by the Board or (subject to any determination of the Board) by the subcommittee.
The Board may establish advisory groups (comprising members from the public and private sectors) to advise the Board on such matters relating to the procurement of goods and services as are referred by the Board to those advisory groups.
142 Delegation of Board’s functions
(1) The Board may delegate to an authorised person any of its functions, other than this power of delegation.(2) A delegate may subdelegate to an authorised person any function delegated by the Board if the delegate is authorised in writing to do so by the Board.(3) In this section, authorised person means any of the following:(a) a member of the Board or a subcommittee of the Board,(b) a member of staff of a Division of the Government Service,(c) a statutory body,(d) a statutory officer,(e) any other person or body, or person or body of a class, prescribed by the regulations.
(1) The Board must, on or before 31 October in each year, prepare and present to the Minister a report of its work and activities for the year ending on the preceding 30 June.(2) The Minister must lay the report or cause it to be laid before both Houses of Parliament as soon as practicable after receiving the report.(3) The report may be included in any annual report of the Department for which the Minister is responsible.
Part 7.3 Objectives and functions of Board
The objectives of the Board are as follows:(a) to develop and implement a Government-wide strategic approach to procurement,(b) to ensure best value for money in the procurement of goods and services by and for government agencies,(c) to improve competition and facilitate access to Government procurement business by the private sector, especially by small and medium enterprises and regional enterprises,(d) to reduce administrative costs for government agencies associated with procurement,(e) to simplify procurement processes while ensuring probity and fairness.
(1) The Board has the following functions:(a) to oversee the procurement of goods and services by and for government agencies,(b) to develop and implement procurement policies,(c) to issue directions to government agencies under section 148,(d) to monitor compliance by government agencies with the requirements of this Chapter (including Board directions),(e) to investigate and deal with complaints about the procurement activities of government agencies,(f) to develop appropriate procurement and business intelligence systems for use by government agencies,(g) to collect, analyse and publish data and statistics in relation to the procurement of goods and services by and for government agencies,(h) such other functions as are conferred or imposed on the Board by or under this or any other Act.(2) The Board has power to do all things necessary or convenient to be done for, or in connection with, the exercise of its functions.(3) The Board is to exercise its functions in accordance with any applicable Government-wide procurement policies.
146 Competitive neutrality in tendering
(1) The Board has the function of ensuring compliance by public authorities of the State with competitive neutrality principles referred to in the Competition Principles Agreement made on 11 April 1995 by the Commonwealth, the Territories and the States, as in force for the time being.(2) The regulations may make further provision for and with respect to the Board’s function under this section.(3) A person who contravenes a provision of the regulations made under this section that is specified for the purposes of this section is guilty of an offence.Maximum penalty: 100 penalty units or imprisonment for 6 months, or both.
Part 7.4 Procurement arrangements
147 Procurement of goods and services by government agencies
(1) The Board may establish a scheme under which a government agency accredited by the Board may procure goods and services for that agency or for other government agencies, subject to any terms and conditions of its accreditation.(2) The Board may also authorise a government agency to carry out specified procurement of goods and services without Board accreditation.
148 Board may issue directions to government agencies
(1) The Board may issue directions to government agencies regarding the procurement of goods and services by and for government agencies.(2) A direction may be issued to government agencies generally or to a particular government agency.(3) Without limiting the generality of subsection (1), the Board may issue directions regarding:(a) the methods to be used for procuring goods and services, and(b) contracts for the procurement of specified goods and services, and(c) the kinds of contracts for the procurement of goods and services for which tenders are required, and(d) the limits on duration of contracts, and(e) any matters relating to procurement procedures arising from a complaint about the procurement activities of a government agency.
149 Obligations of government agencies
(1) A government agency is to exercise its functions in relation to the procurement of goods and services in accordance with:(a) any policies and directions of the Board that apply to the agency, and(b) the terms of its accreditation (if any) by the Board, and(c) the principles of probity and fairness.(2) A government agency is also to ensure it obtains value for money in the exercise of its functions in relation to the procurement of goods and services.(3) A government agency is, at the request of the Board, to provide information to the Board about its activities in relation to the procurement of goods and services.
150 Delegation of functions by government agencies
A government agency or government agency head may delegate to a member of staff of the agency any function conferred or imposed on the agency or agency head pursuant to:(a) the terms and conditions of the agency’s accreditation by the Board, or(b) any Board direction.
(1) The regulations may make provision for and with respect to the procurement of goods and services by and for government agencies, including but not limited to exemptions from any of the requirements of this Chapter.(2) The regulations may authorise the Board to enter into arrangements with public bodies other than government agencies in relation to the procurement of goods and services by and for those bodies.