New South Wales Consolidated Acts

LOCAL GOVERNMENT ACT 1993 - SECT 55

55 Requirements for tendering

(1) A council must invite tenders before entering into any of the following contracts--

(a) a contract to carry out work that, by or under any Act, is directed or authorised to be carried out by the council,

(b) a contract to carry out work that, under some other contract, the council has undertaken to carry out for some other person or body,

(c) a contract to perform a service or to provide facilities that, by or under any Act, is directed or authorised to be performed or provided by the council,

(d) a contract to perform a service or to provide facilities that, under some other contract, the council has undertaken to perform or provide for some other body,

(e) a contract for the provision of goods or materials to the council (whether by sale, lease or otherwise),

(f) a contract for the provision of services to the council (other than a contract for the provision of banking, borrowing or investment services),

(g) a contract for the disposal of property of the council,

(h) a contract requiring the payment of instalments by or to the council over a period of 2 or more years,

(i) any other contract, or any contract of a class, prescribed by the regulations.

(2) Tenders are to be invited, and invitations to tender are to be made, by public notice and in accordance with any provisions prescribed by the regulations.

(2A) Nothing in this section prevents a council from tendering for any work, service or facility for which it has invited tenders.

(3) This section does not apply to the following contracts--

(a) subject to the regulations, a contract for the purchase of goods, materials or services specified by a person prescribed by the regulations made with another person so specified, during a period so specified and, if a rate is so specified, at a rate not exceeding the rate so specified,

(b) a contract entered into by a council with the Crown (whether in right of the Commonwealth, New South Wales or any other State or a Territory), a Minister of the Crown or a statutory body representing the Crown,

(c) a contract entered into by a council with another council,

(d) a contract for the purchase or sale by a council of land,

(e) a contract for the leasing or licensing of land by the council, other than the leasing or licensing of community land for a term exceeding 5 years to a body that is not a non-profit organisation (see section 46A),

(f) a contract for purchase or sale by a council at public auction,

(g) a contract for the purchase of goods, materials or services specified by the NSW Procurement Board or the Department of Administrative Services of the Commonwealth, made with a person so specified, during a period so specified and, if a rate is so specified, at a rate not exceeding the rate so specified,

(h) a contract for the employment of a person as an employee of the council,

(i) a contract where, because of extenuating circumstances, remoteness of locality or the unavailability of competitive or reliable tenderers, a council decides by resolution (which states the reasons for the decision) that a satisfactory result would not be achieved by inviting tenders,

(j) contract for which, because of provisions made by or under another Act, a council is exempt from the requirement to invite a tender,

(k) a contract made in a case of emergency,

(l) a contract to enter into a public-private partnership,

(m) if a council has entered into a public-private partnership--a contract entered into by the council for the purposes of carrying out a project under the public-private partnership (but only to the extent that the contract is part of the project that has been assessed or reviewed under Part 6 of Chapter 12),

(n) a contract involving an estimated expenditure or receipt of an amount of--

(i) less than $250,000 or another amount as may be prescribed by the regulations, or

(ii) less than $150,000 or another amount as may be prescribed by the regulations for a contract involving the provision of services where those services are, at the time of entering the contract, being provided by employees of the council,

(o) a contract that is an environmental upgrade agreement (within the meaning of Part 2A),

(p) a contract or arrangement between a council and the Electoral Commissioner for the Electoral Commissioner to administer the council's elections, council polls and constitutional referendums,

(q) a contract made with a person or body approved as a disability employment organisation under the Public Works and Procurement Act 1912 for the purchase of goods or services in relation to which the person or body is so approved.

Note : Despite the person or body being approved under the Public Works and Procurement Act 1912 , that Act does not otherwise apply to the procurement of goods and services by or for a council.

(4) A council that invites tenders from selected persons only is taken to comply with the requirements of this section if those persons are selected--

(a) from persons who have responded to a public advertisement for expressions of interest in the particular contract for which tenders are being invited, or

(b) from persons who have responded to a public advertisement for recognition as recognised contractors with respect to contracts of the same kind as that for which tenders are being invited.