How to do business with NSW Government

DSRD small business program 26 April 2007 How to do business with NSW Government Anthony Solano, Group General Manager, Contracting Services Government procurement framework • Procurement valued under $150k can be managed by the agency (some flexibility up to $500k) • Those over $150k are managed by NSW Procurement’s Contracting Services • Two broad types of contracts available: – Agency specific - to meet unique requirements of agencies – Whole-of-government - to meet common needs across agencies Changed focus for government • Recent Premier’s Memorandum – Expanded mandate to use contracts – Agency accreditation and up skilling of procurement know-how – All major agencies to implement eProcurement solution, smartbuy® • Release of the People First ICT Strategy Plan Why the changes? • Redirect funds from back office to frontline services • Greater leverage of the government’s aggregated purchasing power • Increase compliance • Consumption and demand management • Strategies to influence better outcomes through volume commitment and tenure • Tailored solutions to agency specific requirements • Consolidate interaction with industry Drivers for change • Government agencies aim to increase frontline services • Looking for procurement savings from ‘back office’ • Savings expenditure to fund those additional frontline services • Commerce and NSW Procurement (NSWP) have significant role in government procurement management activity to realise savings What we do • Offers services in all aspects of the tendering & contracting process – identifying user requirements – preparing and releasing tenders – providing expert assistance in bid assessments – ongoing vendor management and contract performance monitoring • Over 139 whole-of-government period contracts worth approximately $3.1 billion pa (volume of sale) • Approx. 1,362 approved suppliers supply more than 105,300 catalogued items to 12,393 registered client organisations • Approx. 214 client contracts that cater to agencies' specific procurement needs • Eligible buyers include Government agencies (State and Federal), Local Government and Not for Profit (NFP) organisations Tender process - overview • Advertising – Online at http://tenders.nsw.gov.au – Including key media such as the Sydney Morning Herald – Tender documents can be downloaded (no charge) – Contact Officer details for tender information and clarifications – Industry briefing maybe held to address overall queries/issues Close of tender Evaluation process – Using predetermined and agreed plan – Initial examination and assessment – Detailed evaluation which may include presentations, site visits and demonstrations … – Evaluation Report and Recommendation submitted to State Contracts Control Board (SCCB) for awarding of contract Contract Award – Once all negotiations have been settled and successful suppliers informed – Debriefing of unsuccessful tenderers where requested • • • The tender process - common misconceptions • • List of accredited suppliers that are engaged for NSW Government contracts without tendering Suppliers contracted to supply goods/services to another state Government or the Commonwealth Government may also supply to NSW Government agencies without tendering Interstate tenderers cannot win NSW Government contracts. • • • Large companies always win contracts when competing against smaller regionally based companies Any company accepted as a contractor on a NSW Government standing offer arrangement is guaranteed a minimum level of orders Whole-of-government contracts • Accessed by individual agencies • Approved suppliers are responsible for the marketing of their products and services – Contracting Services will assist using existing channels • Suppliers must perform satisfactorily to remain on contact Engaging with approved suppliers Our Vendor Management unit: – Develops supplier relationships to • Monitor and manage service and performance • Streamline processes and remove roadblocks • Attain high client satisfaction and contract utilisation – Provides tools, reports and resources to • Identify opportunities • Help manage risk • Achieve efficient and effective processes What you need to do? • Do research on who and how your products/services are currently acquired within the sector • Understand the ‘procurement process’ – Contracting Services can provide advise • Scan the tenders website and media to find out what ‘request for tenders’ have been issued Thank you.