Strengthening Procurement Policy in NSW

Strengthening Procurement in NSW

New South Wales' Procurement Policy Framework sets the foundation for how government agencies procure goods, services, and construction projects. It ensures that procurement activities align with value for money, fair competition, sustainability, and ethical standards. The framework is regularly updated to reflect changing economic conditions, industry best practices, and government priorities.

Recent updates to the framework introduce new transparency requirements, greater support for NSW-based suppliers, and amendments to procurement rules, all of which impact how businesses engage with the government procurement process.

Key Changes in the NSW Procurement Policy Framework

Increased Transparency for Supply Opportunities

From 31 December 2024, all procurements exceeding $150,000 (including GST) must be published on NSW eTendering.

This ensures that businesses have clear visibility into upcoming opportunities and that procurement processes remain fair and competitive. Government agencies must fully comply with this requirement by 31 December 2025.

Prioritising NSW-Based Suppliers

From 9 September 2024, the policy stipulates that for government contracts valued at $7.5 million or more (excluding GST), agencies must:

1. Identify NSW-based suppliers capable of meeting the procurement needs.
2. Give these suppliers a fair opportunity to compete.
3. Justify procurement decisions where local suppliers are not selected.
4. Report quarterly to the NSW Procurement Board on their compliance with this directive.

This measure aims to boost local industry participation and support regional businesses in securing government contracts.

Amendments to Enforceable Procurement Provisions

Effective 18 October 2024, the government has revised procurement rules to increase local content participation:

1. The previous clause prohibiting procurement offsets has been removed.
2. The rule against discrimination based on supplier origin has been adjusted to ensure preference for NSW businesses.
3. Procurement lists will now remain continuously open to new applicants, ensuring greater supplier competition and diversity.

Implications for NSW Businesses and Contractors

These updates signal a shift towards greater inclusivity and accessibility in NSW government procurement. By increasing transparency and prioritising local suppliers, the framework is designed to:

• Provide businesses with better access to government contracts.
• Ensure fairer competition between local and national suppliers.
• Encourage economic growth by keeping procurement dollars within NSW.

Businesses looking to work with the NSW Government should familiarise themselves with these changes and ensure they are registered on NSW eTendering, actively monitoring tenders, and aligning their practices with new compliance requirements.

As government procurement policies evolve, platforms like Catchment can support contractors and suppliers by tracking social procurement commitments, workforce participation, and local supplier engagement, ensuring compliance with these new procurement standards.