NSW government updates its procurement policy to priorities ‘local jobs’

The New South Wales Government announced on 20 September 2024 that it will support all nine recommendations from the NSW Parliament’s recent inquiry into government procurement.

Topping this list will be:

An expanded definition of 'value for money' so that opportunities for job creation and local industry support can be factored into government spend

Included in this is requirement that contracts worth more than $7.5M need to be given to a NSW based business, otherwise a ‘please explain’ letter will be sent:

Mandating that agencies engage with local NSW suppliers before tendering for contracts worth more than $7.5 million, and if the contract is awarded to a supplier outside NSW, to undergo a ‘please explain’ outlining why it wasn’t,

Interestingly, SMEs in NSW would appear to be on the winning side of these changes with the Government said to be:

Slashing red tape for small and medium enterprises who contract with the NSW Government, and increasing the threshold for direct engagement to $250,000,

But,

Improved compliance and assurance with procurement policies and directions,

will need to be explained a little in light of the previous comment.

Jobs First Commission

As part of the overhaul the NSW Government will legislate a Jobs First Commission that will mandate:

local tender weightings and minimum skills requirements, and monitor their implementation,

Debarment scheme

Worth noting that the NSW Government is also looking to create a ‘debarment scheme’:

to ban dodgy suppliers from engaging with the NSW Government.

Things could get interesting!

BidWiz