The NSW Government has announced that it will support all nine recommendations from the state parliament’s inquiry into government procurement, with a focus on transparency, simplicity and supporting local jobs.
The inquiry, which received 64 submissions from a range of stakeholders, found the reforms already put in place by the NSW Government are on the right track, but there’s more to be done to ensure the state’s $42 billion spend supports local jobs and local industries.
The recommendations will see an expanded definition of ‘value for money’, which will mean opportunities for job creation and local industry support can be factored into government spend.
It will be easier for small and medium size enterprises to bid for government contracts, there will be improved compliance and assurance with procurement policies and directions, and new measures to ensure all parties involved in a competitive tender bid receive timely feedback.
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said the NSW Government has the opportunity to be smarter with procurement dollars.
“The inquiry’s report made it clear that there is significant reform required to ensure the effective operation of the procurement framework to maximise value-for-money for taxpayers,” she said.
“By reforming the way the Government spends its precious procurement dollars, we can unlock new opportunities for local suppliers and small businesses.”
The inquiry’s recommendations complement the reforms that have already been put in place, including the announcement of a new debarment scheme, the slashing of red tape for small and medium enterprises, and the requirement that all agencies must engage with local NSW suppliers before tendering for contracts worth more than $7.5 million.
Chair of the inquiry Dr Sarah Kaine MLC said it was an important inquiry, given the vital role government procurement plays in the NSW economy.
“With almost $42 billion spent each year, we need to make sure that this spend factors in the overall impact and cost to our community, not just the ticketed price,” she said.
“I am pleased the Government will be supporting all nine recommendations, it highlights this Government’s commitment to ensuring our procurement system is fit for purpose, and to leverage the power of government procurement to promote local jobs and foster our local manufacturing industry.”
