NSW Government publishes Test & Buy Innovation procurement guidelines

The NSW Government has announced Test & Buy Innovation procurement guidelines it claims make it easier for agencies to work with tech companies to identify, test and buy “cutting-edge solutions”.

Developed by Digital NSW, the guidelines aim to support government buyers in “buying innovation” by helping them “clearly identify the ‘problem’ and then invite the market to propose the solution.”

Buyers will then have the option to work with an identified supplier or suppliers to test a solution through a multi-stage process before “implementing the best outcome at scale”.

The NSW Government wants the guidelines to help departments avoid being “forced down rigid tender pathways which have to specify a solution and can lead to purchases of ‘off-the-shelf’ technology.”

“Market disruptors” will be able to “showcase their technologies, instead of being forced to conform to inflexible procurement practices.”

The Test & Buy Innovation procurement guidelines site lists criteria to help buyers determine whether “innovation-friendly procurement practices” are the right approach for a project. This criteria includes:

• Solution to problem is unknown, or there may be multiple solutions.
• Desire to scale successful proof of concept or trials. 
• Willingness to take a solution-agnostic, outcomes-based approach.
• Willingness to test and learn to improve understanding of the problem and solution.
• Total scale of opportunity can be estimated in terms of total contract value (TCV) with just enough accuracy to identify the best financial delegate and understand future funding steps.
• Greenfields project: a problem that is not currently solved, a new opportunity for suppliers.
• Brownfields project: issues uncovered with existing solutions, for example during contract review, that might prompt buyers to explore not just different products, but different approaches. 
• Willingness to reimburse one or multiple suppliers for proof or trial stages to encourage a wider range of suppliers and solutions.

Pilots have resulted in the purchase of new technologies, such as the use of AI in the pre-lodgement process in housing development applications.

The new guidance follows research and engagement with more than 100 emerging technology suppliers, according to the NSW Government’s announcement.

“This guidance opens the door to better value for money and delivering the best solution powered by the latest technologies,” stated Minister for Customer Service and Digital Government Jihad Dib.

“It provides for greater access to innovative solutions for everyday problems by opening new opportunities for small, medium and local enterprises to contribute ideas straight from technology think tanks.”

“Reforming how NSW Government procures innovative technologies is an important part of the NSW Digital Strategy and will help make services more responsive, forward-thinking and effective for the people of NSW.”

Minister for Innovation, Science and Technology Anoulack Chanthivong added: “Through the Test & Buy Innovation approach, we’re making it easier for government agencies to access new technologies which can drive efficiencies, improve service delivery, and strengthen the digital capability of the public sector.”