NSW procurement objectives

NSW creates value for its citizens when spending public money on goods and services.
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What is procurement?

Procurement is more than purchasing, though the terms are often used interchangeably. Procurement is how we acquire and manage the goods, services and work needed to provide services to NSW citizens.

Procurement involves:

  • planning to determine needs and define the right strategy
  • sourcing the right suppliers to provide goods or services
  • managing the rights and responsibilities of all parties involved
  • disposing of goods when they are no longer required, where applicable.

Read more about the plan, source, manage approach.

In NSW the total amount spent on government procurement is around $30 billion per year.

What are the objectives for NSW procurement?

All government procurement activity should be underpinned by these five objectives:

  • Value for money
  • Fair and open competition
  • Easy to do business
  • Innovation
  • Economic development, social outcomes and sustainability.

Value for money

Value for money means a balanced assessment of a range of financial and non-financial factors, such as: quality, cost, fitness for purpose, capability, capacity, risk and total cost of ownership.

Fair and open competition

Fair and open competition improves outcomes for NSW. It broadens access to government procurement, especially for small and medium enterprises and regional businesses.

Easy to do business

NSW makes it easier to start and stay in business by:

  • making government procurement simpler, easier and more efficient for both agencies and businesses
  • providing streamlined and accessible processes
  • expanding opportunities especially for  small and medium enterprises.


The marketplace is a great source of innovation and can assist government to work smarter and deliver better services.

Economic development, social outcomes and sustainability

Government procurement can help to support economic participation, social outcomes, develop skills and create jobs for the citizens of NSW.

More information on these objectives is available in the Procurement policy framework.

Social responsibility and sustainable procurement

The NSW Government uses procurement to support and develop NSW communities, including supporting jobs and skills development.

Smaller companies sometimes find it hard to compete for government procurement opportunities, so there are policies and information to help buy for social outcomes.

There is also a policy to make sure government agencies use resources efficiently and minimise waste.