This report focuses on current procurement processes in New South Wales government agencies, through agency-specific or whole of government procurement arrangements. It examines a broad array of themes and considers whether the current approach to planning, sourcing and managing government procurement is effective.

Findings

1. There is no consistent or comprehensive definition and understanding of 'value for money'.
2. There are barriers to government procurement opportunities for small-medium enterprises, including inequitable tender and contractual requirements.
3. The NSW Procurement Board is not functioning effectively as an oversight body to ensure agency compliance with obligations under the NSW Procurement Policy Framework and the Public Works and Procurement Act 1912.
4. The current approach to government procurement is not effective in ensuring that government procurement objectives are met and a new approach is warranted.

Recommendations

1. Review and implement an expanded definition of 'value for money' as an immediate priority
2. Review what standard procurement contracts are currently available across all government agencies; consider developing standard procurement contracts across all government agencies where none exist; and investigate the value of mandating standard procurement contracts where appropriate.
3. Reduce the threshold to $100,000 at most for disclosing government procurement contracts to ensure greater transparency of government procurement activities.
4. Set contract management standards, including expectations around contract monitoring and storage requirements for contracts of any value.
5. Develop measures to ensure feedback is provided to all parties involved in a competitive tender bid, as a standard outcome of the procurement process.
6. Assess agency accreditation programs, in particular for construction procurement, with a view to implementing robust accreditation levels to better qualify agencies to meet their procurement needs.
7. Investigate the barriers to government procurement opportunities for small-medium enterprises, with a view to amending or removing inequitable tender or contractual requirements.
8. Develop an independent and robust compliance and enforcement mechanism, with increased data monitoring capabilities. 
9. Expand the remit for procurement officers to undertake sufficient due diligence functions and monitoring of agency compliance.