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‘Delivering better value from professional services’

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1 ‘Delivering better value from professional services’
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 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. Engagement type Sub engagement types 1. Government & Business Strategy Strategy development and planning, strategic business case, business performance reviews, organisational design / transformation, business intelligence, cost management, governance, policy review / development 2. Business Processes Business process mapping / re-engineering 3. Project Management Project management 4. Change Management Change management 5. Financial Services Accounting services, accounting standards, finance process reviews, asset management, valuations, financial / economic advisory services, forensic advisory 6. Audit, Quality Assurance and Risk Internal / external audit, risk management, probity services 7. Taxation Goods and services tax (GST), other tax services 8. Human Resources Human capital management, culture, work health and safety (WHS), remuneration, retention, diversity 9. Procurement and Supply Chain Procurement / sourcing, category management, procurement accreditation, supply chain 10. Marketing and Customer Market research, customer / customer experience, pricing 11. Actuarial Services Actuarial services 12. Transaction Services Transaction services 13. Telecommunications Telecommunications consultancy

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. Engagement type Sub engagement types 14. Specialised Services Crisis management, environment impact assessment, fraud and corruption investigation, training and development, internal communications, external communications, event management, service delivery 15. Infrastructure Services Strategy and planning, risk, major project procurement / delivery and project management, contracting, communication

5 Minimum years of relevant experience
Resource types Standard resource types and definitions apply to engagement types Suppliers are to use the options below in proposals. This allows for easy comparison of quotes from different suppliers and across multiple resources. Resource type Description Minimum years of relevant experience Partner Senior management member 12 Director Management member with deep expertise 10 Senior Manager Senior employee with significant specialist expertise and team leadership capabilities 8 Manager Junior level of entity management, specialist technical and subject matter expertise; manages assignment schedules and resource allocation 6 Senior Consultant Field leadership role, moderate level of technical and subject matter expertise; provides business system advice and consulting services 4 Consultant Performs detailed data and systems analysis, identifies risks, gathers additional data, interprets data and provides recommendations for improvement.  Higher level technical skills, broader experience base, business process & industry knowledge and requiring less supervision than an analyst 2 Analyst Performs data gathering and analysis with strong technical skills. Low level of industry knowledge.  Supervised by more senior members. 0 - 4

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 eTendering using Scheme Explorer. Procurement Board Direction (PBD ) 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 PBD , must be followed by agency buyers.

8 Accepting the standard commercial framework
A more stringent approval process is required to engage suppliers that haven’t accepted 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 confirms the governance process for non-compliant engagements.

9 Support For all procurement enquiries, contact the NSW Procurement Service Centre:​ ​ 8:30 am to 5:00 pm, Monday to Friday​ ​


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