New South Wales Government
__________________________
Department of Finance, Services
and Innovation
Prequalification Scheme:
Performance and Management Services
Guidelines for Agencies
Easy Access Registration List
(EARL)
Engagements up to $50,000 Incl. GST
January 2016
CONTACT DETAILS
For matters related to the operation of the EARL contact:
NSW Procurement Service Centre
McKell Building
Level 11, 2-24 Rawson Place
Sydney NSW 2000
Telephone: 1800 679 289
Email:
NSWBuy@finance.nsw.gov.au
Web:
www.procurepoint.nsw.gov.au
This Guideline should be read in conjunction with the Easy Access Registration List
Rules - Engagements up to $50,000 Incl. GST and its ‘Definitions’.
Both documents available at:
http://www.procurepoint.nsw.gov.au/performance-and-management-services-scheme
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INTRODUCTION
In July 2012, what is now the NSW Department of Finance, Services and Innovation established
the Easy Access Registration List (EARL) to enable Applicants to register as EARL Service
Providers for the provision of performance and management services valued at up to $50,000
(inclusive of GST), to NSW Government Agencies (Agencies). EARL Service Providers are not
required to submit referee reports during the application process.
The Department of Finance, Services and Innovation (DFSI) maintains a list of individuals and
companies which offer services in one or more capability areas. Agencies may engage EARL
Service Providers in the capability areas listed. This list is available on the NSW Governments
ProcurePoint website and via the eQuote system.
The types of services offered under the EARL can be used by Agencies regardless of whether
service providers are engaged as ‘consultants’ or as ‘contractors’.
A consultant is a person or organisation engaged under contract on a temporary basis to provide
recommendations or specialist or professional advice to assist decision-making by the Agency.
Generally, it is the advisory nature of the work that makes a Service Provider a consultant rather
than a contractor.
The EARL aims to:
provide a list of Service Providers that Agencies can use for engagements for listed
capability services up to $50,000 including GST (and in certain limited circumstances
through flow-on engagements up to $75,000 including GST)
provide for reporting on the performance of Service Providers.
The NSW Government Goods and Services Procurement Policy Framework for NSW
Government Agencies (the ‘Procurement Policy’) outlines the responsibilities and standards of
behaviour expected of Service Providers involved in procurement activities. EARL Service
Providers must adhere to the standards established under the Procurement Policy to ensure
that procedural fairness is observed during the procurement process.
What services does the EARL cover?
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The EARL covers 28 consolidated capability areas set out in the “Description of Capabilities” at
http://www.procurepoint.nsw.gov.au/performance-and-management-services-scheme.
Engagements of Service Providers should be undertaken for the provision of services that do
not expose Agencies to a high level of risk. Agencies should use their discretion and consider
risk when determining the suitability of engaging EARL Service Providers for work, as these
Service Providers have not been assessed as rigorously as Service Providers with Full
Prequalification.
Agencies are responsible for selecting the appropriate Service Provider, taking into account the
potential business impact and the level of risk associated with the work to be undertaken by the
Service Provider. To help determine the level and type of risk that may encounter, Agencies
should
refer
to
the
NSW
Procurement
Risk
Management
Guidelines:
http://www.procurepoint.nsw.gov.au/sites/default/files/documents/guidelines_risk_management.pdf
For the assistance of Agencies, DFSI considers the capabilities listed below (being a sub set of
the available capabilities) as potentially "high risk":
1(a)
1(b)
Agency and Program Reviews
Policy/Strategy Reviews
1(c)
Legislative/Regulatory Reviews
2(a)
Strategy and Planning
2(b)
Risk
2(c)
Major Project Procurement / Project Management
2(d)
Contracting
2(e)
Communication
4(d)
Audit and Assurance Services
4(e)
Investigation Services
4(f)
Agency Procurement Assessment (Goods and Services)
4(g)
Board and Committees Membership Appointment Advisory Services
6(a)
ICT Strategic Plans and Business Cases and Project Quality Assurance Reporting
Services
What does the EARL not cover?
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The EARL will not cover areas of procurement already addressed by other NSW Government
schemes or panel contracts, including (but not limited to):
NSW Procurement (period) contracts
Construction-related consultant prequalification schemes
Contingent Workforce Prequalification Scheme
ICT Services Prequalification Scheme
Other NSW Prequalification schemes
How do Applicants become registered EARL Service Providers?
Applicants must complete and submit an application using the online application form accessed
by
clicking
the
“Service
Provider
Application
Form”
link
at
http://www.procurepoint.nsw.gov.au/performance-and-management-services-scheme.
Information submitted with an application will be treated as confidential by DFSI unless
otherwise required by law, but will be made available to Agencies when seeking registered
EARL Providers for services.
How does the EARL operate?
A list of EARL Service Providers is available via the ProcurePoint website and the NSW
Government’s eQuote system.
EARL Service Providers have stated experience in one or more of the capability areas covered
by the EARL. The 28 capability areas are set out in the “Description of Capabilities” at
http://www.procurepoint.nsw.gov.au/performance-and-management-services-scheme.
Once Applicants are registered, they become EARL Service Providers and may be engaged by
Agencies to perform work in their nominated capabilities for engagements up to $50,000
including GST (and in certain limited circumstances through flow-on engagements up to
$75,000 including GST).
Can an Agency engage consultancy services outside the EARL?
Yes. The use of the EARL is not mandatory. All Agencies may refer work to Service Providers
outside the EARL in circumstances where they consider specialist advice can be provided more
efficiently and effectively. Agencies which seek to engage Service Providers outside the
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EARL will be required to comply with relevant Board Directions, the Procurement Policy, and
the Small and Medium Enterprises Policy Framework (SME Policy). The link below takes you
to some general information regarding procuring Consultants:
http://www.procurepoint.nsw.gov.au/policy-and-reform/goods-and-services/procurementconsultancy-services
The SME Policy was adopted by the NSW Procurement Board on 18 January 2013 and sets
out the methods by which procurement must be undertaken to improve access for Small and
Medium Enterprises (SME) to government goods and services procurement via Whole of
Government contracts and prequalification schemes.
Government agencies located in non-metropolitan areas are partially exempt from requirements
to purchase under Whole of Government State contracts and prequalification schemes, allowing
them to direct source small purchases (valued up to $5,000, including GST) from any source (in
regional areas, usually SMEs).
The alternative suppliers’ rates for the goods or services must be reasonable and consistent
with normal market rates. Reasonableness is determined by individual agencies based on
previous and current practices.
Note: Agencies should comply at all times with the requirements of the NSW Procurement
Board and Procurement Policy.
Does the EARL allow for additional flow-on engagements?
A Service Provider registered on the EARL is available to be engaged by an Agency for
engagements up to $50,000 (inclusive of GST) against their registered capabilities.
It is recognised however that in certain limited circumstances, engagements of a Service
Provider pursuant to EARL may exceed $50,000 (Incl. GST) because a flow-on engagement
becomes necessary. The total value of the first and related flow-on engagements is not to
exceed $75,000 (Incl. GST).
If the flow on engagement exceeds $75,000 (Incl. GST), then the Agency is obliged to approach
a different Service Provider for a quote for the further work.
On what terms are EARL Service Providers to be engaged?
A Service Provider registered on the EARL is available to be engaged by an Agency for
engagements of up to $50,000 (including GST
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Applicants agree that, when registered under the Scheme, the terms and conditions of any
engagement made under the Scheme will be those of the EARL Standard Form of Agreement
– terms and conditions attached to the Easy Access Registration List Rules and agree that it is
not necessary to sign the EARL Standard Form of Agreement – terms and conditions for each
or any engagement, instead parties will complete a form of EARL Agreement Details in respect
to each engagement.
The Service Provider agrees not to seek any amendment to the EARL Standard Form
Agreement - terms and conditions. Agencies should not modify the terms of the agreement
unless there are exceptional circumstances.
The details of scope of work, fees and other requirements for the engagement will be set out
the EARL - Agreement Details between the parties.
Indemnity
Clause 10 of the EARL Standard Form of Agreement – Terms and Conditions within the “EARL
Rules” provides that the Service Provider agrees to indemnify agencies against any losses
caused by, among other things, the negligence of the Service Provider.
Agencies are given the option of limiting or ‘capping’ the Service Provider’s liability under Clause
10.3 to a monetary amount, which has to be specified within the EARL - Agreement Details.
The appropriateness of any cap on the Service Provider’s liability under Clause 10 of the
agreement is a risk management matter for the agency to consider. Any such cap should comply
with the Treasury Managed Fund’s contract of coverage. If there is any doubt, the advice of the
Fund Manager should be sought by the agency.
When an agency engages a service provider, it must check that (where required) the service
provider has valid Professional Indemnity insurance and that the level is adequate to meet any
monetary limit that is set for that type of engagement (see Clause 14 of the EARL Standard
Form of Agreement – Terms and Conditions within the “EARL Rules”).
Engagement value and flow on arrangements
EARL Service Providers are not to be engaged for work with a value exceeding $50,000 (Incl.
GST). Flow on engagements should be avoided and Agencies should seek to accurately
estimate the value of work before engaging under EARL. However, if there is a flow on
engagement, the total payable to the EARL Service Provider is not to exceed $75,000 (Incl.
GST). On reaching $75,000 (unless it is a necessary flow-on engagement) the Government
Agency must seek a quote for work from another Service Provider.
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Note: where the estimated cost of a project is more than $150,000 (including GST), an
engagement can be made from the Prequalification Scheme: Performance and Management
Services by inviting a minimum of three (3) service providers with full prequalification under that
Scheme, to submit quotations. Open invitations to tender are not required.
How is performance monitored and reported on?
Quality assurance, value for money, and performance improvement are key objectives of the
EARL. To help meet these objectives, Agencies are required to submit a Performance Report
online in circumstances where, for example, a Service Provider’s performance is considered
unsatisfactory.
Performance Reports are required to be submitted at the completion or termination of the
relevant engagement, or whenever a critical aspect of performance is unsatisfactory.
Where an Agency considers that a Service Provider’s performance has been unsatisfactory, the
Service Provider must be kept informed and afforded an opportunity to show cause as to why it
should not be rated ‘unsatisfactory’.
Agencies should follow the steps outlined in the “EARL Rules” to ensure that they observe
procedural fairness in the course of performance reporting.
Are there compliance requirements for engagements made under EARL?
Agencies using EARL Service Providers are required to understand and comply not only with
the EARL Rules but also with the requirements of:
the Goods and Services Procurement Policy Framework for NSW Government
Agencies; and
The NSW Government Tendering Guidelines, as amended from time to time.
Additional reporting and disclosure requirements apply to Agencies who engage service
providers under:
the Government Information (Public Access) Act 2009 (the “GIPA Act”); and NSW
annual reporting legislation.
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Disclosure obligations under NSW annual reporting legislation
Annual Reports legislation requires agencies to include the following information concerning the
engagement of consultants during the financial year in their Annual Reports:
For consultancies costing equal to or more than $50,000:
the name of the consultant; the title of the project (shown in a way that
identifies the nature of the work); and the actual costs of engaging the
consultant.
For consultancies costing less than $50,000:
the total number of engagements costing less than $50,000; and the
total cost of all such engagements.
The Premier's Department Circular C2004-17: Guidelines for the Engagement and Use of
Consultants (now archived) defined a consultant as:
‘A person or organisation engaged under contract on a temporary basis to provide
recommendations or high level specialist 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.’
The definition does not apply to casual or temporary staff employed or engaged by a NSW
government organisation, and is distinct from the definition of 'contractor'. Agencies should refer
to the NSW Department of Premier and Cabinet’s website for more information on the distinction
between
‘consultant’
and
‘contractor’:
http://www.dpc.nsw.gov.au/publications/memos_and_circulars/circulars/2004/c2004-17
How long will the EARL operate for?
The EARL commenced in July 2012. Scheme has been rolled over for a further period and will
be reviewed again prior to 19 February 2017.
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ATTACHMENT A
AGENCY FEEDBACK: CONTINUOUS IMPROVEMENT
The feedback of Agencies is sought on the guidance provided by the Department of Finance,
Services and Innovation for the use of the EARL - Performance and Management Services
Scheme. Feedback may be provided by an Agency at any time as well as following each
engagement.
< Poor-Good-Excellent >
1. How do you rate the following aspects of the Scheme:
1
2
3
4
5
1
2
3
4
5
(c) Ability to download a list of service providers from the eQuote system
1
2
3
4
5
(d) Usefulness and relevance of the list to the procurement need
1
2
3
4
5
(e) Ability to run an RFX on the eQuote system.
1
2
3
4
5
2
3
4
5
2
3
4
5
(a) Adequacy of Scheme Guidelines and documentation.
(b) Adequacy of training documentation:
Buyer - Buying from a prequalification scheme and
Buyer - Review, evaluate and accept / reject RFx responses
2. How do you rate the value for money provided by the service providers
engaged under the Scheme.
3. How do you rate the quality of the outcomes of the engagements with service
providers engaged under the Scheme.
1
1
4. Do you think that using the Scheme has saved you time in the procurement process: Yes / No and will you
continue to utilise the Scheme for future procurement needs for performance and management services: Yes / No.
Comments:
5. Do you utilise the eQuote system to run RFX’s, if not, why not. If using the eQuote system to run an RFX do you
provide a performance report for the engagement, if not, why not.
Comments:
6. What made you decide to select the service providers from the Scheme's prequalified list:
a) agency policy b) reduced tender time / ease of use c) quality of service providers d) information on eQuote
Other, please specify:
7. Are there other services that you think should be included in this Scheme.
Please specify (include average spend on this category).
8. How do you think the Scheme process can be further improved.
Comments:
9. Overall, how would you rate the operations of the Scheme?
Agency Name:
Contact:
1
2
3
4
Date:
Upon completion, this Form should be e-mailed to NSWBuy@finance.nsw.gov.au
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