Procurement planning obligations
- Some procurements come with extra obligations, such as high-value and critical procurements.
- Where your contract is a significant one, you may have to conduct gateway reviews and potentially even supply a business case to NSW Treasury.
- You’ll also have to address foreign exchange risk where you’re buying goods from overseas.
- We also recommend you develop a category plan to help make sure the project delivers value for money.
Why special planning obligations
As a government, we owe NSW residents the assurance that we’ll deliver projects efficiently and provide value for money. This means you have extra planning obligations for certain procurements, especially high-value and critical ones.
Gateway reviews are independent expert reviews you must organise at certain key decision points in the project lifecycle, including in the planning phase. Gateway reviews apply to capital, recurrent and ICT projects.
Read more about the Gateway review system on the NSW Treasury website.
Foreign exchange (FX) risk
When you buy or sell goods from overseas, you may face FX risk. This can also be true where you source overseas goods or services indirectly, through a local company.
When you’re preparing your procurement strategy or business case, you must consider the impact of FX risk. If you identify FX risk, you must consult with NSW Treasury and T-Corp to manage it.
If NSW Treasury determines there’s ‘substantial risk’, you must prepare an FX risk management plan.
Read more in TPP18-03 NSW Government Foreign Exchange Risk Policy (PDF).
If your procurement involves a ‘significant proposal’, you also need to prepare a business case and provide it to NSW Treasury to be considered by the Expenditure Review Committee of Cabinet. Significant proposals can include capital, recurrent and ICT investments.
Read more in TPP18-06 NSW Government Business Case Guidelines
One of the NSW Government’s key procurement objectives is to promote competition among suppliers. By fostering competition, we can tap into innovative new ways to deliver goods and services and deliver more efficiency and better value to the people of NSW.
In line with this objective, we recommend you develop category plans that articulate your priorities and strategies for managing a category of goods or services. You should then use this to guide your procurement strategies for procurements for the relevant categories.
Read more about promoting competition through category management.