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. There are two levels of accreditation for goods and services procurement.
  2. Unaccredited agencies can only procure goods and services up to the maximum contract values (MCVs) set by the NSW Procurement Board and outlined in the current Procurement Board Directive, PBD 2020-04 Approved procurement arrangements.
  3. Level 1 accredited agencies have staggered risk and spend thresholds (or MCVs).
  4. Level 2 accredited agencies have no prescribed MCVs, and may pursue any procurement value that fits within their approved budget and delegations.
  5. If a contract exceeds your agency's MCV, you must seek and obtain concurrence from an agency within your cluster who has the appropriate accreditation level.

Your agency’s accreditation level determines the maximum contract value (MCV) of goods and services you can procure without assurance. MCVs are established by the NSW Procurement Board.

As at 1 October 2020, the current MCVs are outlined in PBD 2020-04 Approved procurement arrangements.

Find out your agency’s accreditation level and status in the agency accreditation status list (goods and services) DOC, 143 KB.

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

Levels of accreditation for goods and services procurement

There are two levels of accreditation for goods and services procurement, as outlined in the Accreditation Program for Goods and Services Procurement.

Level 1 accredited agencies have a lower threshold or maximum contract value (MCV) for goods and services procurement. Where procurement is valued in excess of $20 million, Level 1 accredited agencies are required to determine their risk-based MCV using the decision tree available on this page. [LINK = https://buy.nsw.gov.au/policy-library/policies/accreditation-program-goods-and-services-procurement#34]

Level 2 accredited agencies are not bound by MCV, and are able to establish whole-of-government procurement arrangements with Board approval.

Unaccredited agencies

An unaccredited agency can procure goods and services to maximum contract values (MCVs) outlined in PBD 2020-04, which came into effect on 1 October 2020.

If your agency is unaccredited and you need 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

A level 1 accredited agency can procure goods and services to different maximum contract values (MCVs) depending on the level of risk . 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 $680,000: 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 $680,000: 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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