NSW seeks better buys
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The NSW Government says it is overhauling its procurement policies.
The Minns Labor Government has agreed to support all nine recommendations from the NSW Parliament’s inquiry into government procurement policies.
The move promises more transparency, fairness, and local job creation, but the subtext is clear - past governments dropped the ball.
The inquiry, initiated by Minister for Domestic Manufacturing and Government Procurement, Courtney Houssos, was driven by growing concerns over the state of local manufacturing, a sector that saw significant decline under the previous Liberal-National Government.
“Thousands of jobs and billions of dollars of major contracts were sent abroad,” Minister Houssos said.
This allegedly led to delays, cost blowouts, and inferior products.
One of the major shifts outlined is an expanded definition of “value for money” in government contracts, which will now include opportunities for job creation and support for local industries.
The government says the previous rules made it virtually illegal for agencies to even consider local employment or business growth when awarding contracts. Now, those barriers are set to be dismantled.
The inquiry also recommended slashing red tape for small and medium-sized enterprises (SMEs), a sector that often struggles to compete against large corporations in government tenders.
SMEs will find it easier to directly engage with government contracts up to $250,000, offering a lifeline to many local businesses.
Another key aspect of the reforms includes mandating that agencies engage with local suppliers for contracts worth over $7.5 million.
If these contracts go to out-of-state providers, agencies will now be required to explain why.
Minister Houssos is optimistic about the impact these reforms will have.
“By reforming the way the government spends its precious procurement dollars we can unlock new opportunities for local suppliers and small businesses,” she said.
For those involved in procurement, there will also be new requirements to offer timely feedback to all parties involved in competitive bids, an improvement on the opaque processes that many have complained about for years.
Chaired by Dr Sarah Kaine MLC, the inquiry heard from a broad array of stakeholders, including industry professionals, unions, councils, and academics.
“We need to make sure that this spend factors in the overall impact and cost to our community, not just the ticketed price,” said Dr Kaine.
In tandem with the recommendations, the Government says it is already pursuing broader reforms.
It has announced plans to create a Jobs First Commission, which will mandate local tender weightings and introduce minimum skills requirements.
It also plans to set up a debarment scheme, which will prevent “dodgy suppliers” from engaging in government contracts, a move likely to shake up the industry.
Last year, the NSW Government spent around $42 billion on goods and services, a significant potential boost to the local economy if spent wisely.
The inquiry’s first report, and the full NSW Government response are available on the NSW Parliament website