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Information and Communications Technology Procurement

Requirements  
Regulation

The procurement of information and communications technology by Public Sector Service agencies (as defined in Section 3 of the Public Sector Employment and Management Act 2002) is governed by the Public Sector Management (Goods and Services) Regulation 2000.

All public sector service agencies must obtain their goods and services, including ICT, through the State Contracts Control Board (SCCB).  Where the SCCB has arranged a period contract, a public sector service agency must use the contract for that equipment or service.

Where there is no SCCB period contract, public sector service agencies can undertake their own purchasing within the General Purchasing Delegation established by the SCCB.  For purchases in excess of $150,000, public sector service agencies are required to submit the details of the requirement to Contracting Services, the operational arm of SCCB, for the invitation of tenders.

There are separate specific delegations for disposal and consultants.

Information Management and Technology Blueprint The People First Strategy shows how Government uses information management and technology to create accessible and responsive government services and deliver them to the community.
GSAS Requirement NSW Government agencies are to obtain corporate application system packages from Government Selected Application Systems contracts. These contracts are stated in Government Chief Information Office Government Selected Application Systems Guideline.  State Owned Corporations are encouraged to use the contracts.
Shared Corporate Services Strategy Cabinet has required that all corporate services related ICT expenditure, whether self-funded or Treasury funded, be approved by the Treasury and the Department of Commerce for the duration of the Strategy. The intention of the approval is to ensure that the expenditure complies with the Shared Corporate Services Strategy (Premier's Circular 2003-25).
Corporate Procurement Planning Agencies are required to prepare annual procurement plans that analyse current procurement practices and spend and outline strategies for improvement in the short to medium term. Each procurement is to comply with these strategies.
Business Case Guidelines A business case should be prepared for all projects and is required for initiatives submitted to central agencies for approval and/or funding.  The Guidelines for Capital Business Cases TPP08-05 provides a 'how to' resource to develop a business case.
Gateway Review Process Gateway reviews are independent assessments applied at key decision points in the procurement process. A review at the Business Case Gate for ICT proposals must be carried out on all high risk projects and other projects over $5 million.
Asset Strategy Total Asset Management (TAM) is a NSW Government policy introduced to achieve better planning and management of the State's assets. The TAM Asset Strategy together with its supporting Capital Investment, Maintenance, Disposal and Accommodation Strategic Plans, are required to be submitted to Treasury in August each year. Refer to Treasury Circular TC08-06.
Capital Investment Process Refer to Treasury Circulars TC06-23 and TC08-07 and Policy and Guidelines Paper TPP06-10 for other government requirements in the ICT Capital Investment Process.
ICT Strategic Planning Agencies are required to update and review their Information Management and Technology (IM&T) Strategic directions on an annual basis in accordance with the Strategic Management Framework. For more details, refer to the Government Chief Information Office ICT Strategic Planning Guideline and annual advice to agencies on the review of IM&T Strategic Plans.
Process Guides  
Tendering Guidelines These Guidelines provide a structured approach to planning and implementing tendering and associated processes to complement the NSW Government Code of Practice for Procurement. 
Acquisition of ICT Refer to the Government Chief Information Office Acquisition of ICT Guideline for assistance in how to manage the acquisition process for ICT systems from any source.
Project Risk Management Refer to the Government Chief Information Office Project Risk Management and Acquisition of ICT Guideline for assistance in how to ensure that project risks are adequately identified and managed.
Simple Procurement If you are purchasing information and communications technology generally of low risk and the value for money decision factors are likely to be primarily price and availability, see the Simple Procurement Guidelines for further information.
Complex Procurement If you are purchasing information and communications technology that are generally high value, high risk, sensitive or of strategic importance. (Process map)
Disposals If you are disposing of surplus information and communications equipment, see the Disposal Guidelines for more information about how to manage the disposal process.
Reconnect.nsw Computer Reuse Program The NSW Government has initiated a program that will see unwanted working computers from Government agencies refurbished and distributed to disadvantaged educational institutions, individuals and community groups. The program will assist in providing these groups with access to technology and the opportunity to develop basic ICT skills.
Category Specific Procurement Guides  
Consultants A consultant is a person or organisation that provides recommendations or high level specialist advice to assist decision-making by management. The Premier’s Department Guideline for the Engagement and Use of Consultants sets out the Government’s expectations about engaging consultants and provides advice on best practice.
Telecommunications Broadband Services is the NSW Government Telecommunications Strategy that was approved in December 2001 to address the telecommunications needs of the people of NSW as a matter of priority. Government Chief Information Office (formerly Office of Information and Communications Technology) is facilitating the objectives of the strategy by: aggregating the government’s telecommunications services and establishing innovative purchasing agreements with industry; and establishing a framework where the demands for bandwidth by government agencies can be properly evaluated against social and business requirements and total cost to government.
Useful Links  
Total Asset Management Manual Total Asset Management is the strategic management of physical assets to best support the delivery of agency services. The Manual explains the five asset plans, which comprise a Total Asset Management Strategy and provides a series of guidelines on implementing various aspects of asset planning.  Refer to Premier's Memorandum M2002-10.
Government Chief Information Office Guidelines and Memoranda The Government Chief Information Office has a series of Guidelines and Memoranda to provide specific directions and guidance for agencies in implementing the Government's ICT requirements.
Service Competition Guidelines The NSW Service Competition Policy requires agencies to incorporate market testing and contracting reviews as part of their formal business planning. The guidelines provide a “how to” summary of the implementation of the competitive tendering option in service competition.  See also the Government Chief Information Office Contracting Out Guideline.
Service Contracting Guidelines Service contracts are performance based agreements with external providers that specify service outcomes, outputs and standards. These guidelines provide a framework for agencies undertaking a service contracting process and can be read in conjunction with the Service Competition Guidelines.
NSW Government Electronic Procurement Implementation Strategy The strategy encourages the take-up of electronic commerce in procurement.  Guidelines are available to assist agencies in developing their individual electronic procurement strategy and managing delegations when adopting electronic procurement.
Purchasing Cards and Expense Management Software Guidelines These guidelines provide an explanation of Purchasing Cards and Expense Management Software and some implementation guidance.
Reverse Auctions Guidelines The Reverse Auctions guidelines provide information for agencies planning to use reverse auctions as a procurement method.  This includes advice on where to use reverse auctions and the benefits and disadvantages of this procurement method.
Contracting for Services:  The Probity Perspective This ICAC document provides guidance to agencies to maintain integrity when contracting for services.  It also provides information on the ethical standards expected of organisations contracted to provide services to the public sector.
Pitfalls or Probity: Tendering and Purchasing Case Studies This ICAC publication uses case studies to suggest ways to minimise opportunities for corruption, as well as perception.
Sustainability Policy 

The policy sets targets and strategies for sustainable water and energy use, reducing greenhouse gas emissions, waste and fleet management and sustainable purchasing.  Refer to Premier's Memorandum M2008-28.

Refer also to GreenGoods website for guidance on incorporating the principles of sustainability into purchasing decisions and procurement systems.

Go to Process map covering the 10 stages for ICT procurement