Supplier guidance on the standard commercial framework for the Performance and Management Scheme

1. Supplier guidance on the standard commercial framework for the Performance and Management Scheme ‘Delivering better value from professional services’ April 2019

2. Overview • In 2018, NSW Procurement launched a standard commercial framework for the Performance and Management Services Prequalification Scheme (PMS Scheme), which includes: • Engagement types • Resource types • Capped resource rates • Discount structure • Capped expenses and standard expense types • $250K excluding GST threshold for direct engagement • When supplying through the PMS Scheme, the standard commercial framework must be applied to engagement types 1 – 13. • Procurement Board Direction 2019-01 confirms the governance for non-compliant engagements.

3. PMS Scheme engagement types 1 - 13 The PMS Scheme has 15 engagement types. The standard commercial framework applies to engagement types 1 – 13. View the full engagement and sub-engagement types list.

4. PMS Scheme engagement types 14 and 15 The standard commercial framework does not apply to engagement types 14 and 15, existing PMS Scheme Conditions apply. View the full engagement and sub-engagement types list. Suppliers prequalified for these 2 engagement types must upload their rate cards through their scheme application in eTendering.

5. Resource types Standard resource types and definitions apply to engagement types 1 - 13. Suppliers are to use the options below in proposals. This allows for easy comparison of quotes from different suppliers and across multiple resources.

6. Commercial-in-confidence information for suppliers The standard commercial framework includes commercial-in-confidence information that is not publicly available. This includes: • Capped resource rates • Discount structure • Capped expenses • Resource mix targets Pre-qualified PMS suppliers can find this information by logging in to the eTendering website, clicking on their name on the top right and selecting scheme applications. The details are available under the questionnaire section within the ‘standard commercial framework’ heading. For suppliers applying to the PMS Scheme, this information will form part of the online application process in the scheme documents.

7. Suppliers The list of PMS suppliers is on ProcurePoint and also in eTenderingusing Scheme Explorer. Procurement Board Direction 2019-01 (PBD-2019-01) lists suppliers that have not accepted the standard commercial framework: • Boston Consulting Group • Cambridge Economic Policy Associates • L.E.K. Consulting • McKinsey & Company • Partners in Performance • Port Jackson Partners • Promontory Australasia An engagement with the above listed suppliers will be considered a ‘non-compliant engagement’, and the more stringent governance process, listed in the PBD2019-01, must be followed by agency buyers.

8. Accepting the standard commercial framework A more stringent approval process is required to engage suppliers that haven’taccepted the standard commercial framework: • Suppliers that accept the standard commercial framework: • $250K excluding GST maximum threshold for direct engagement with customers (for engagement types 1-13) • No reporting on the Major Suppliers’ Portal • Suppliers that haven’t accepted the standard commercial framework and non-compliant engagements: • Each engagement must be approved by the Secretary, Executive Agency Head or cluster Chief Financial Officer, only once satisfied the work can’t be completed under the standard commercial framework • Engagements must be competitively bid with at least 3 bids to ensure value for money • Report information on the Major Suppliers’ Portal Procurement Board Direction 2019-01 confirms the governance process for non-compliant engagements.

9. Support For all procurement enquiries, contact the NSW Procurement Service Centre:​ nswbuy@finance.nsw.gov.au​ 1800 679 289​ 8:30 am to 5:00 pm, Monday to Friday​ ​ https://www.procurepoint.nsw.gov.au/​