NSW Procurement Laws

Part 11 of the Public Works and Procurement Act 1912 (PWP Act) provides the legislative framework for procurement for NSW government agencies.

Public Works and Procurement Act

The PWP Act establishes the NSW Procurement Board, its objectives and functions and defines the procurement obligations of government agencies. The Act requires government agencies to conduct procurement activities:

  • in accordance with the policies and directions of the Board
  • in accordance with the terms of their accreditation by the Board
  • in accordance with the principals of probity and fairness
  • to ensure they obtain value for money.

Government agencies must also provide information to the Board about procurement activities when requested.

The PWP Act and the Procurement Board’s policies and directions apply to all government agencies, excluding state-owned corporations and local councils, as defined in s.162 of the Act. The Act and the Procurement Board’s policies also apply to agencies that undertake procurement to fulfil statutory functions or have other statutory powers to undertake procurement.

Amendments

Amendments to the PWP Act commence on 29 November 2019.

Under these amendments:

  • The NSW Procurement Board is authorised to issue directions and policies with enforceable procurement provisions relating to international procurement agreements.
  • A supplier has a statutory right to complain to an agency head about alleged non-compliance with an enforceable procurement provision relating to international procurement agreements. The agency head must investigate and attempt to resolve any such complaint.
  • A supplier who has lodged a complaint alleging an agency has not complied with an enforceable procurement provision relating to international procurement agreements can apply to the Supreme Court for an injunction to enforce compliance. In some circumstances the supplier can also apply to the Court for an order that the agency pay limited compensation.

The Board has issued PBD 2019-05 Enforceable Procurement Provisions Direction with a commencement date of 29 November 2019. This Direction applies to 41 government agencies including all principal government departments from that date. View covered agencies.

Public Works and Procurement Regulation

The Public Works and Procurement Regulation 2019 provides for:

  • procurement for emergencies
  • procurement of goods and services from approved disability employment organisations
  • access to NSW procurement arrangements by other public bodies (‘eligible buyers’)
  • the Procurement Board’s role to investigate and report on complaints in connection with competitive neutrality principles.

Other regulatory requirements

NSW Government agencies must comply with a range of other regulatory requirements when conducting their procurement activities, including: