The parliamentary inquiry into Procurement practices of government agencies in NSW and its impact on the social development of the people of NSW was established on 11 October 2023 to inquire into and report on the procurement practices of NSW government agencies and how they relate to social development.
The committee has recently published its final report. In this article, we take a look at some of the important findings and recommendations from the report.
Background
According to the report, government procurement accounted for $42 billion last year, utilising 130,000 suppliers of goods and services.
The committee notes that government procurement has the capacity to boost local manufacturing and job growth, achieve better social, environmental and sustainability outcomes, as well as contributing to the delivery of public services across the state.
Whilst the committee’s first report examined the procurement framework and associated processes, the final report focuses on “the prioritisation of local suppliers with government contracts and the need for procurement to ensure labour standards are achieved and social and environmental sustainability objectives are prioritised.”
Findings and recommendations
The final report includes 13 findings and 22 recommendations to the NSW Government. Some of the overarching findings and recommendations included:
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- Increased prioritisation of local businesses – finding 3 states “government procurement practices have a role in stabilising market demand to allow more surety for local businesses, empowering them to grow and innovate, providing benefits to the state economy.”
- More stringency required around the risks of modern slavery and non-compliance with labour laws – recommendation 5 states “that the NSW Government ensure procuring government agencies engage in due diligence and conduct compliance history checks prior to awarding a contract to a supplier.”
- Better support for the procurement of social enterprises, Aboriginal and Torres Strait Islander businesses, disability enterprises and circular economy organisations – recommendation 12 states “that the NSW Government could strengthen the Procurement Policy Framework and associated policies to achieve social procurement outcomes, including by setting specific targets for the procurement of social enterprises and considering how certification schemes could be adopted to ensure the procurement of businesses that achieve social impact,” along with recommendations 13-16.
- Increased prioritisation of local businesses – finding 3 states “government procurement practices have a role in stabilising market demand to allow more surety for local businesses, empowering them to grow and innovate, providing benefits to the state economy.”
- Greater consideration given to environmental objectives – recommendation 19 states “that the NSW Government consider introducing requirements for those who win tenders to be subscribers of product responsibility and stewardship schemes.”
- Explore options for collaborative tendering – recommendation 17 “explore options for collaborative tendering within whole of government and agency-specific procurement arrangements to achieve social procurement objectives, support social enterprises and small businesses, and encourage innovation.”
We eagerly await the government’s response to the report, due in January 2025.
If you want to learn more about NSW procurement practices and understand how your business can supply to the NSW Government, get in touch.