Tag Archives: public spending

Submission: Procurement Practices of NSW Government Agencies

The inquiry into the procurement practices of government agencies in New South Wales (NSW) focuses on examining how these practices impact the social development of its citizens. It seeks to assess the current state of procurement, including the value, policies, and adherence to the NSW Procurement Policy Framework. The effectiveness of existing procurement arrangements in ensuring value for money and compliance with regulations, particularly labour laws, is a key area of investigation. The inquiry also looks into the capacity of procurement officials to assess suppliers and ensure compliance throughout the procurement process. Opportunities for co-regulation and incentives to improve labour market governance and enforcement through procurement are considered to achieve both economic efficiency and social outcomes. Evaluation criteria for tenders, emphasizing local content, value for money, social and environmental considerations, innovation, and subcontracting arrangements, are scrutinized. The transparency and accountability of procurement practices, the government’s ability to prioritize local content, jobs, training opportunities, diversity, and inclusion, and support for local suppliers and small and medium enterprises¬† are also under review. Furthermore, the inquiry explores procurement best practices from other jurisdictions to encourage ethical conduct and promote social development, along with any other related matters. Through this comprehensive examination, the inquiry aims to identify ways in which procurement practices can be optimized to contribute positively to the social development of NSW residents.

My co-authored submission offers several recommendations to enhance the social impact of procurement practices:

  1. Establish Centralised Procurement Oversight: Create a central authority within the NSW government to ensure compliance with procurement guidelines and audit practices.
  2. Lower Threshold for Contract Disclosure: Reduce the disclosure threshold for government contracts to improve transparency and public trust.
  3. Prioritise Local Suppliers: Introduce policies that emphasize social returns on investment and support for local businesses.
  4. Social Procurement Clauses: Include social criteria in procurement decisions to promote job security, indigenous employment, compliance with health and safety laws, and worker representation.
  5. Supplier Debarment: Introduce mechanisms for managing suppliers based on their conduct, including watchlists and do-not-engage lists, to ensure ethical business practices.