Definition of a consultant

1. Definition of a consultant Guidance for buyers

2. Document purpose and contents Document purpose: • The purpose of this document is to provide additional context and guidance for buyers in applying the definition of a consultant specified in Procurement Board Direction 2019-01. Contents: • Annual Reporting Requirements • Annual Reports Regulation • Definition of a consultant • Procurement Board Direction 2019-01 • Common examples • High level guidance for common project types • International Procurement Agreement (IPA) definitions • Detailed guidance for a wide range of project types

3. Annual Reporting requirements Annual Reports provide transparency for topics of public interest, including: • Which government initiatives were supported by external advice to assist government decision making? – e.g. legislation, asset sales, etc • Which suppliers provided that advice? • What was the cost of the advice for each project and cumulatively for all projects? • How often does the government seek external advice to assist decision making each year? Consultant spend must be disclosed in Annual Reports1 • For annual reporting purposes, the definition of a consultant is specified in Procurement Board Direction 2019-01. • Annual reporting requirements are not limited to particular professional services sub-categories, contracts or prequalification schemes. 1. Annual Reports (Departments) Regulation 2015 and Annual Reports (Statutory Bodies) Regulation 2014

4. Definition of a consultant Procurement Board Direction 2019-01 defines a consultant as follows: “A consultant is defined as a person or organisation engaged under contract on a temporary basis to provide recommendations or professional advice to assist decision-making by management. Generally it is the advisory nature of the work that differentiates a consultant from other contractors. Services provided under the NSW Government Legal Services Panel are excluded from the definition of a consultant for annual reporting purposes.”

5. Common characteristics of consulting engagements Consultancies provide agencies with recommendations or professional advice that often have one or more of the following characteristics: • is developed without direct supervision from the agency • represents an independent view • is the sole or majority element of the contract in terms of relative value or importance

6. Common examples of consulting engagements • Finance and accounting • A person or firm engaged primarily to advise on the financial viability of a government business enterprise is a consultant. • A person or firm engaged primarily to provide routine auditing or routine accounting services even though that includes professional advice would not be a consultant. • Geotechnical or cadastral surveying • A person or firm engaged primarily to advise on the viability of a government decision based on geotechnical or cadastral survey information is a consultant. • A person or firm engaged primarily to provide routine geotechnical or cadastral surveying services even though that includes professional advice would not be a consultant. Information Technology • A person or firm engaged to assist the development of an information technology strategic plan and/or to assist with the development of specifications for the systems and/or to provide advice on implementation is a consultant. • A person or firm engaged to undertake implementation in accordance with the specifications, for example, supplying or writing the software and constructing the systems, wouldnot be a consultant.

7. Common examples (continued) • Legal • A person or firm engaged primarily to advise on legal issues relating to a proposed innovation or amendments to legislation is a consultant. • A person or firm engaged primarily to provide routine legal services such as conveyancing, advocacy, drafting documents etc even though that includes professional advice, would not be a consultant. • NB: legal services engaged under the NSW Government Legal Services Panel are not included in the definition of a consultant. Training • A person or firm engaged to provide advice on training needs and to develop training programs is a consultant. • A person or firm engaged to provide the actual training would not be a consultant. Program Evaluations • A person or firm engaged primarily to provide independent high level policy advice on outcomes of a government program and make recommendations is a consultant. • A person or firm engaged to collect and analyse data regarding a program under the direction of an agency would not be a consultant.

8. International Procurement Agreements (IPA) Definitions

9. IPA definitions – Strategic management consulting services This subclass includes: • providing advice, guidance and operational assistance concerning business policy and strategy and the overall planning, structuring and control of an organization. More specifically, general management consulting assignments may deal with one or a combination of the following: • policy formulation • determination of the organizational structure (decision-making system) that will most effectively meet the objectives of the organization • legal organization • strategic business plans • corporate development and restructuring consulting services, such as on mergers, acquisitions, joint ventures, strategic alliances, diversification, privatization • defining a management information system • development of management reports and controls • business turnaround plans • management audits • development of profit improvement programmes • other matters that are of particular interest to the higher management of an organization Source: Central Product Classification (CPC) – 83111 Strategic management consulting services https://unstats.un.org/unsd/classifications/unsdclassifications/cpcv21.pdf

10. IPA definitions – Financial management consulting services This subclass includes: • providing advice, guidance and operational assistance concerning decision areas that are financial in nature, such as: • working capital and liquidity management, determination of an appropriate capital structure • analysis of capital investment proposals • asset management • development of accounting systems and budgeting and budgetary controls • financial consulting services related to mergers, acquisitions, etc. such as advice on methods of valuations, methods of payment, methods of control, international finance This subclass does not include: • security brokerage services, cf. 71521 • portfolio management services (except for pension funds), cf. 71530 • pension fund management, cf. 71640 Source: Central Product Classification (CPC) – 83112 Financial management consulting services https://unstats.un.org/unsd/classifications/unsdclassifications/cpcv21.pdf

11. IPA definitions – Human resources management consulting services This subclass includes: • providing advice, guidance and operational assistance concerning the human resources strategies, policies, practices and procedures of an organization. Human resources consulting assignments may deal with one or more of the following: • recruitment, compensation, benefits, performance measurement and appraisal • organizational development (improving functioning within and between groups) • employee training and development needs • outplacement procedures and plans for assistance to employees • succession planning • compliance with government regulations in areas such as health, safety, workers' compensation and employment equity • labour-management relations • human resources audits Source: Central Product Classification (CPC) – 83113 Human resources management consulting services https://unstats.un.org/unsd/classifications/unsdclassifications/cpcv21.pdf

12. IPA definitions – Marketing management consulting services This subclass includes: • providing advice, guidance and operational assistance concerning the marketing strategy and marketing operation of an organization. Marketing management consulting assignments may deal with one or a combination of the following: • analysis and formulation of a marketing strategy • formulation of customer service programmes, pricing, advertising and distribution channels • sales management and sales staff training • organization of marketing channels (sale to wholesalers or directly to retailers, direct mail, franchise, etc.), package design and other matters related to the marketing strategy and operations of an organization This subclass does not include: • public relations services, cf. 83121 • advertising services, cf. 836 Source: Central Product Classification (CPC) – 83114 Marketing management consulting services https://unstats.un.org/unsd/classifications/unsdclassifications/cpcv21.pdf

13. IPA definitions – Operations management consulting services This subclass includes: • providing advice, guidance and operational assistance concerning: • improvements to systems and procedures • improvements to office and service operations, such as: • office layout • workflow planning • work standards • office automation, such as the selection and installation of automated systems • product development, quality assurance and quality management • plant safety, security and protection • services provided by agronomists and agricultural economists This subclass does not include: • supply chain management consulting services, cf. 83116 Source: Central Product Classification (CPC) – 83115 Operations management consulting services https://unstats.un.org/unsd/classifications/unsdclassifications/cpcv21.pdf

14. IPA definitions – Supply chain and other management consulting services This subclass includes: • providing advice, guidance and operational assistance concerning integrated supply chain management, i.e. a bundled product that includes inventory management, warehousing and storage and distribution services • providing advice, guidance and operational assistance concerning logistic management, such as: • inventory management logistic consulting, that is keeping track of the existing inventory, determining the most effective inventory requirements for a client • distribution and transportation logistic consulting, including the processes used by a client to store, handle and move goods within an organization, to ship goods from the client to the customers • warehousing and storage logistic consulting including the processes of receiving, storing and issuing an item • maintenance logistic consulting • other management consulting services, n.e.c. Source: Central Product Classification (CPC) – 83116 Supply chain and other management consulting services https://unstats.un.org/unsd/classifications/unsdclassifications/cpcv21.pdf

15. IPA definitions – Public relations services This subclass includes: • providing advice, guidance and operational assistance concerning methods to improve the image and relations of an organization or individual with the general public, government, voters, shareholders and others This subclass does not include: • planning and creating of advertising, cf. 83611 • public opinion polling services, cf. 83700 Source: Central Product Classification (CPC) – 83121 Public relations services https://unstats.un.org/unsd/classifications/unsdclassifications/cpcv21.pdf

16. IPA definitions – IT consulting services This subclass includes: • providing advice or expert opinion on technical matters related to the use of information • technology, such as: • advice on matters such as hardware and software requirements and procurement • systems integration • systems security • provision of expert testimony on IT related issues This subclass does not include: • providing advice, guidance and operational assistance concerning the use of information technology by businesses, such as the development of an e-commerce strategy, cf. 83111 • service contracts where advice is bundled with the design and development of an IT solution (website, database, specific application, network, etc.), cf. the appropriate information technology (IT) design and development service under 8314 Source: Central Product Classification (CPC) – 83131 IT consulting services https://unstats.un.org/unsd/classifications/unsdclassifications/cpcv21.pdf

17. IPA definitions – Architectural advisory services This subclass includes: • provision of advice, studies and reports on architectural matters • expert witness services in the field of architecture consisting in the provision of testimony before a court or administrative body, by a witness who, by virtue of experience, training, skill or knowledge of architecture, is recognized as being qualified to render an informed opinion on • matters relating to that field or subject This subclass does not include: • provision of advice, studies and reports on architectural matters done in a bundle with other architectural services for a specific project, cf. according to the type of project in 83212, 83213, 83214 Source: Central Product Classification (CPC) – 83211 Architectural advisory services https://unstats.un.org/unsd/classifications/unsdclassifications/cpcv21.pdf

18. IPA definitions – Landscape architectural advisory services This subclass includes: • provision of advice, studies and reports on landscape architecture matters • expert witness services in the field of landscape architecture consisting in the provision of testimony before a court or administrative body, by a witness who, by virtue of experience, training, skill or knowledge of landscape architecture, is recognized as being qualified to render an informed opinion on matters relating to that field or subject This subclass does not include: • provision of advice, studies and reports on landscape architecture matters done in a bundle with other landscape architectural services for a specific project, cf. 83232 Source: Central Product Classification (CPC) – 83231 Landscape architectural advisory services https://unstats.un.org/unsd/classifications/unsdclassifications/cpcv21.pdf

19. IPA definitions – Engineering advisory services This subclass includes: • provision of advice to clients concerning engineering principles and methods, when performed independently of an engineering project, including policy analysis, regulatory studies and audits • provision of testimony by a witness who, by virtue of experience, training, skill or knowledge of engineering, is recognized as being qualified to render an informed opinion on such matters • engineering investigation of a failed engineered system or structure to determine causal factors This subclass does not include: • advice, studies, and reports performed in conjunction with a project, cf. based on the project type under 8332 Source: Central Product Classification (CPC) – 83310 Engineering advisory services https://unstats.un.org/unsd/classifications/unsdclassifications/cpcv21.pdf

20. IPA definitions – Geological and geophysical consulting services This subclass includes: • provision of advice, guidance and operational assistance concerning the location of mineral deposits, oil and gas fields and groundwater by studying the properties of the earth and rock formations and structures • provision of advice with regard to exploration and development of mineral, oil and natural gas properties, including: • pre-feasibility and feasibility studies • project evaluation services • evaluation of geological, geophysical and geochemical anomalies • surface geological mapping or surveying Source: Central Product Classification (CPC) – 83411 Geological and geophysical consulting services https://unstats.un.org/unsd/classifications/unsdclassifications/cpcv21.pdf

21. IPA definitions – Environmental consulting services This subclass includes: • environmental assessments, i.e. objective studies undertaken for any one or more of the following purposes: identify whether or not environmental contamination exists at a particular site, and if so determined, the source, nature, and extent of the contamination; assess the risk to public safety and health from environmental contamination associated with a project that is proposed or in place; evaluate the impact on the ecology or economy of environmental changes resulting from human or natural activities • environmental audits, i.e. independent assessment of the current status of a party's compliance with applicable environmental requirements or of a party's environmental compliance policies, practices and controls • site remediation planning services, i.e. preparation of plans for the abatement of environmental contamination, usually at a specific site, that incorporate such technical or other requirements as may be prescribed by law or regulation • evaluation of environmental studies, i.e. provision of analysis that explains the strengths or weaknesses of an environmental study and provides the basis for alternative judgments. The evaluation of environmental studies may also include an analysis of future responses to • environmental regulators • natural resource management consulting, i.e. provision of objective information, advice, or guidance concerning the best practices for ecologically sustainable development and use of: land; forests; bodies of water; gas, oil, and mineral deposits; wildlife populations and other natural resources • waste management consulting, i.e. provision of objective information, advice, or guidance concerning the best practices for the minimization, transport, handling, disposal and/or recycling of waste • environmental policy development consulting, i.e. advising public or private institutions on the design, development and implementation of environmental statutes, regulations, standards, or practices Source: Central Product Classification (CPC) – 83931 Environmental consulting services https://unstats.un.org/unsd/classifications/unsdclassifications/cpcv21.pdf

22. IPA definitions – Security consulting services This subclass includes: • determining clients' needs and providing advice and suggestions as to the type of security that is best suited for the client or as to improvements in existing systems This subclass does not include: • computer security consulting, cf. 83131 Source: Central Product Classification (CPC) – 85220 Security consulting services https://unstats.un.org/unsd/classifications/unsdclassifications/cpcv21.pdf

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