What is accreditation for goods and services procurement?

Accredited agencies are authorised for goods and services procurement to maximum contract values set by their accreditation level.
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What you need to know
  1. Accreditation determines the maximum value of goods and services a NSW Government agency can procure.
  2. The NSW Procurement Board grants accreditation to NSW Government agencies (not to individuals).
  3. There are two levels of accreditation for goods and service procurement, with different thresholds or maximum contract values (MCVs).
  4. To become accredited, your agency must apply to the NSW Procurement Board and complete a formal assessment process, which involves engaging an independent assessor.
  5. To maintain accreditation, your agency must meet ongoing responsibilities around reporting, planning, self-assessment, trigger event management, and concurrence.
  6. If your agency doesn't have the accreditation level you need, you must seek and obtain agreement with another agency within your cluster to provide assurance. This is called concurrence.

Accreditation is a formal recognition by the NSW Procurement Board that an agency has successfully completed an independent assessment process as part of the Accreditation Program for Goods and Services Procurement.

An accredited agency must meet minimum standards in:

  • identifying and managing procurement risks
  • driving continuous improvement in your procurement function
  • delivering procurement outcomes that provide value and match the NSW Government’s strategic priorities.

The accreditation program for goods and services procurement is managed separately to the construction accreditation program.

Keep reading below for a summary of the goods and service procurement accreditation program, or navigate to the detailed pages for:

Understand levels of accreditation and MCVs

There are two levels of accreditation specifically for goods and services procurement, as outlined in the Accreditation program for goods and services procurement. The level of accreditation determines the maximum contract value (MCV) an agency can work with.

  • Level 1 accredited agencies can procure goods and services up to different maximum contract values (MCVs), depending on the level of risk.
  • Level 2 accredited agencies have no maximum contract value (MCV).

Read more about levels of accreditation.

Get accredited for goods and services procurement

The accreditation program for goods and services is governed by the NSW Procurement Board and administered by NSW Procurement.

The program includes a formal assessment process conducted by an independent assessor. The assessor will analyse your procurement function performance in 10 focus areas. They will interview key staff in your agency, analyse your procurement processes and documentation, and compile a formal report.

Once the formal report is complete, the assessor will lodge the report with NSW Procurement so it can be reviewed by the NSW Procurement Board.

The board will determine whether to grant accreditation based on minimum accreditation requirements.

Accreditation is granted in perpetuity, provided the agency meets ongoing obligations around procurement performance, reporting and annual targets.

Read more about the accreditation assessment process.

Maintain accreditation through annual obligations

Just as the Procurement Board grants accreditation, it can also vary or cancel your accreditation.

Your agency must continue to meet the minimum requirements of your accreditation level, and must fulfill obligations that include:

  • reporting on your procurement performance and setting annual outcomes targets
  • reporting on agency-specific contracts
  • managing, reporting and resolving trigger events
  • providing appropriate concurrence for unaccredited agencies or agencies with a lower level of accreditation.

Accreditation is granted in perpetuity, as long as an agency continues to meet its accreditation responsibilities or unless a trigger event occurs that results in a review or remediation process.

Read more about responsibilities for accredited agencies.

Work with maximum contract values (MCVs)

Unaccredited agencies can procure goods and services up to certain maximum contract values (MCVs) as determined by the NSW Procurement Board. The current MCVs are outlined in Approved procurement arrangements (PBD 2020-04).

Exceptions to MCVs may be allowed by the board for emergency or one-off procurements.

Agencies that are unaccredited (or accredited to level 1) must seek and obtain assurance for contracts above their maximum allowable contract values.

Use the decision tree for level 1 agencies to chart your path through MCVs, schemes and enforceable procurement provisions. A graphic version of the decision tree JPG, 82.05 KB is available for download and reference.

Seek or provide procurement assurance

In goods and services procurement, the process of providing assurance is called concurrence.

Concurrence is the process whereby another agency (or NSW Procurement) can provide assurance for your procurement. The other agency must be:

  • located within your cluster
  • accredited to the appropriate level of value and risk.

Read about concurrence in Approved procurement arrangements (PBD 2020-04), including the use of whole-of-government contracts and schemes.

Concurrence and how it's granted is determined by the agency providing the concurrence, to a pragmatic level of assurance.

Read more about concurrence pathways for goods and services procurement.

Comply with policy and board directions

All agencies are required to regularly test their compliance with the Procurement Policy Framework, which applies to the procurement of goods and services of any kind -- including construction.

Agencies purchasing ICT must also comply with the latest Procurement Board Direction on Approved procurement arrangements for ICT services scheme (PBD 2020-05).

For most (but not all) NSW Government agencies, procurements over a certain value must meet legal requirements under Australia’s international procurement agreements. This is outlined in the latest Procurement Board Direction for Enforceable procurement provisions (PBD 2019-05).