Levels of accreditation for goods and services procurement

Your agency’s accreditation level determines the maximum contract value you can authorise for goods and services procurement.
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What you need to know
  1. Your agency can be unaccredited or have one of 2 levels of accreditation.
  2. Non-accredited agencies can only procure goods and services up to the value of $650,000 or $1.3 million (both excluding GST) for construction contracts.
  3. Level 1 accredited agencies can procure up to different maximum contract values depending on the level of risk.
  4. Level 2 accredited agencies can procure goods and services of any value within their budget.
  5. If a contract exceeds your accreditation threshold, you must seek concurrence.
  6. The pathway you need to follow for concurrence depends on your level of accreditation and the contract value.

Your agency’s level of accreditation affects the maximum value of the procurement you carry out. To become accredited your agency must prove it can meet certain requirements. If it hasn’t, it’s known as a non-accredited agency.

You should generally use whole-of-government procurement arrangements to engage a supplier regardless of your accreditation level, although there are some exemptions.

Unaccredited agencies

If your agency is unaccredited, you can generally procure goods and services valued up to a threshold of $650,000, ex GST. For construction work, your threshold is higher at $1.3 million, ex GST.

If your agency is unaccredited and you want to procure goods and services over this value, you should seek concurrence from:

  • an accredited agency within your cluster, or
  • NSW Procurement.

Level 1 accredited agencies

You can procure goods and services up to different maximum contract values (MCVs) depending on the level of risk involved. Base this calculation on the full scope of work. Don’t break it into smaller contracts.

Level of riskMaximum contract value (MCV)
Low$50 million
Medium$35 million
High$20 million

Beyond these amounts, you must seek concurrence from a level 2 accredited agency or from NSW Procurement.

Level 1 agencies can also play a concurrence role for unaccredited agencies within their cluster up to these thresholds.

How to assess risk for maximum contract value (MCV)

You should assess risk for any contract with an MCV of more than $20 million during the procurement planning stages. You can do this using the decision tree for level 1 agencies to assess risks.

Where the contract value exceeds the MCV, you must seek concurrence.

Level 2 accreditation

You’re not bound by any maximum contract value (MCV). Your agency should be playing a leadership and concurrence role within its cluster.

You can also establish whole-of-government procurement arrangements, so long as you have board approval to do so.

Concurrence pathways

You need to follow different concurrence pathways depending on your agency’s accreditation level and the contract value.

If you’re granting concurrence to another agency, how you do this is up to you, although you must use a pragmatic level of assurance.

Concurrence pathways for non-accredited agencies

Your concurrence pathway depends on the contract value.

  • $30,000 to $650,000: You must get at least 3 quotes or seek concurrence for a non-competitive process from your agency head or an accredited agency within your cluster.
  • More than $650,000: You must seek concurrence from an accredited agency within your cluster or from NSW Procurement.

Concurrence pathways for Level 1 accredited agencies

You should adopt a staggered risk and spend approach.

A cluster financial delegation, cabinet or a cabinet standing committee can approve your contract. However, if your contract exceeds MCV limits, you must seek concurrence from a level 2 accredited agency within your cluster or from NSW Procurement.

Concurrence pathways for Level 2 accredited agencies

You have no MCV and can also approve contracts in line with your cluster’s financial delegation.

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