Prequalification scheme planning guide

This information helps NSW Government agencies considering creating a new prequalification scheme. It covers:

  • assessing if a prequalification scheme suits ongoing procurement needs
  • creating a new prequalification scheme.

Assessing if a prequalification scheme suits procurement needs

Prequalification schemes are best for:

  • low risk, high spend volume commitments  
  • niche categories with many suppliers 
  • increasing access to small and medium enterprises (SMEs) and regional suppliers. 

Please consider the following:

  • Does a review of the market show that pricing would be significantly lower if the volume of goods or services was combined?
  • Are there many potential suppliers for the goods or services? Will a prequalification scheme increase access to SMEs and regional suppliers?
  • Can suppliers ensure continuity of supply, with relatively low risk considerations?
  • Does the purchasing strategy suit a quote under a panel arrangement?
  • Are service requirements relatively simple to specify?
  • Are close working relationships with suppliers non-essential?
  • Will there be ongoing purchase requirements, that is not just a one-off purchase?

If you answered yes to these questions, a prequalification scheme may meet your future procurement needs.

Other key considerations

A prequalification scheme can be one or two-tiered. It can also be tailored to meet dollar thresholds, and have higher or lower levels of supplier assessment criteria.

  • one-tiered schemes: can the scheme have an easy access registration list (EARL) approach?
  • two-tiered schemes: should the scheme consider different market segments, recognising specialist or increased skills/experience?

Next steps

Please contact the NSW Procurement Sourcing Services team to discuss your needs and requirements further.      

The prequalification scheme planning template will help you put together the information needed to build the scheme. This includes scheme rules, supplier application process and requirements.

How to create a new prequalification scheme

These are the steps to create a new prequalification scheme:

  1. define needs and strategy
    1. define procurement needs
    2. consider assessment questions above
    3. decide if scheme will have one or two tiers
    4. contact the NSW Procurement Sourcing Services team  
  2. build the prequalification scheme
    1. complete the prequalification scheme planning template
    2. finalise requirements with the NSW Procurement Sourcing Services team
    3. review and approve scheme draft
    4. seek agency endorsement to publish scheme
    5. provide scheme information to be published on the ProcurePoint website.  
  3. launch the scheme
    1. publish and release the new scheme on the eTendering website
    2. communicate the new scheme to agencies and suppliers.

The process takes up to three months to complete. This depends on the complexity of the scheme.