Contract devolution

A key principle of the government’s procurement reforms was that, where appropriate, some whole-of-government contracts would be devolved to agencies with specialist knowledge of a category, the best understanding of opportunities to make savings, and incentive to drive better value and innovation.

    The following contracts have been devolved:

    In accordance with the NSW Procurement Board's seven guiding principles, devolution of contracts:

    1. is guided by agreed principles: devolution is not a simple transfer from the Department of Finance, Services and Innovation (DFSI) to another agency, but needs to involve all affected agency clusters appropriately
       
    2. is staged: an initial assumption is that existing arrangements should be permitted to continue until their planned expiry (in some cases through to 2016), and it may be necessary to extend some State Contract Control Board contracts beyond their nominal period
       
    3. occurs towards the agency which dominates expenditure under the contract: the Procurement Leadership Group (PLG) has accepted, for the purposes of the review, an agency dominates expenditure under whole-of-government arrangements where it accounts for at least 35 per cent of the known spend during two consecutive years - noting that the PLG also recognises that a dominant buyer may not, in every case, be the agency with the largest degree of expenditure and that there may be instances where an agency with a smaller aggregate spend nevertheless holds a particular expertise in relation to the expenditure category
       
    4. aligns with the accreditation process: only accredited agencies should manage whole-of-government arrangements
       
    5. occurs where there is adequate capability: this needs to be assessed on a case-by-case basis after the entire forward program has been approved
       
    6. has implications for resourcing: this needs to be assessed both at agency level and across the centre of government in the planning phase
       
    7. involves a hybrid arrangement: where the leadership of the procurement activity resides with a nominated agency and DFSI provides support and enabling functions.