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Supplier ForumFY 2019-20
20 October 2020
Welcome
Philip Sarbutt
Director Category Management - Human & Professional Services
NSW Procurement
2
Agenda
• NSW Government Contingent Workforce Strategy Update
• Contractor Central Update
• Fiscal Year 2019/20 Overview
• Scheme 0007 Metrics and Analysis
• Scheme 0007 Update
• Other updates
• Q & A
3
What is Contractor Central?
4
Contractor Central
Managed Service Providers (MSP)
Panel of providers responsible for delivering
efficiencies by implementing agreed cost saving
strategies and process improvements
Vendor Management System (VMS)
Whole of government SaaS platform to support
the management of the contingent workforce
and in-scope SOW engagements
Contingent Workforce
Prequalification Scheme (SCM0007)
A panel of contingent labour suppliers established through a pre-qualification Scheme
Statement of Work (SOW) Prequalification
Schemes, Panels or Contracts
Selected whole of government or cluster specific
supplier arrangements established through a
scheme, panel or contract
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Highlights: FY 2019-20
Contractor Central
• NSW Transport and Treasury implementation. All agencies now have Contractor Central!
• 335 suppliers have completed onboarding in at least one instance of Contractor Central
SCM0007
• 380+ suppliers now prequalified. No suppliers removed by NSWP during COVID-19
• Its now easier to apply for additional categories! Scheme questions streamlined.
Spend and volume
• $1.483 billion spend under management, nearly $1 Billion through the VMS (-7.6% vs FY19)
• Over 14 million hours logged (approx. 8,000 FTE) with 14,000 total workers during the course of the year
COVID-19
• Remote / Flexible working arrangements
• Overall stability of NSWG contractor workforce and hours worked
6
NSW Government Economic Recovery Plan
• https://www.nsw.gov.au/covid-19-recovery-plan
• https://www.nsw.gov.au/covid-19/businesses-and-
employment/keeping-people-jobs-and-businesses-
business
• https://www.nsw.gov.au/covid-19/safe-
workplaces/workers
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NSW Government Contingent Workforce Strategy
Contractor Central
Prequalification Scheme(s)
A panel of suppliers established through a
prequalification Scheme for Contingent
Workforce or Statement of Work
Vendor Management
System (VMS)
Whole of government SaaS platform to
support the management of the
contingent workforce
Managed Service Providers (MSP)
Panel of providers responsible for
delivering efficiencies by implementing
agreed cost saving strategies and process
improvements
Payroll Providers
A panel of payroll providers to assist in building a NSW Govt
specific pool of
contingent workers
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
Transport Education StrongerCommunities
Health EligibleCustomers
PlanningIndustry andEnvironment
CustomerService
Treasury Premier andCabinet
External toGovernment
Sector
FY 18/19 FY 19/20
Spend by ClusterFY 2019 - 2020
Total: $1.48b
$ Millions
-8% Compared to
FY 2018/19
Source: VMS and Supplier reported spend data
Spend by CategoryFY 2019-20
Total: $1.48b
$ Millions
$0 $100 $200 $300 $400 $500 $600
N Home Care Service
M NSW State Emergency Services
L Other
K Education
J Transport
I ICT Applications,…
H ICT Management,…
G ICT Network and Equipment
F Technical
E Professional
D Industrial
C Specialist
B Finance
A Administration
2018-19 2019-20
Source: VMS and Supplier reported spend data
Top 20 Suppliers Market ShareFY 2019-20
0% 5% 10% 15% 20% 25% 30% 35%
HCM
Ashdown
Infopeople
Spinifex
Allegis
Capstone
Bluefin
Greythorn
TRS
Clicks
Finite
Robert Walters
Paxus
Chandler Macleod
Peoplehank
Charterhouse
Ethos and Quay
Talent International
Randstad
Hays
Other
69%
Spend by business sizeFY 2019-20
111 95
35
47 61
34
Small Medium Large Suppliers
$202m
$682m$609m
Small Medium Large Suppliers
Suppliers without spend
70%
61%
51%
NB: Size is determined by the number of FTE staff employed by the supplier. That is: Small 1-19, Medium 20 – 200 and Large 200+
Source: VMS & Supplier Reported spend data, www.tenders.nsw.gov.au – Total number of supplier as at July 2020.
Suppliers
with reported
spend
Spend
by Supplier
type40%46%
14%
Aboriginal Procurement Policy FY 2019-20
The NSW Government Aboriginal Procurement Policy sets targets for clusters to
increase indigenous supplier engagement
3% of all Goods and Service Contracts 1% of all addressable spend
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
Mill
ion
s
+439%
2019/20
https://buy.nsw.gov.au/policy-library/policies/aboriginal-procurement-policy
VMS vs Non-VMS SpendFY 2019-20
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Supplier Reported
Contractor Central
0%
10%
35%
56%61% 62%
100%
90%
65%
44%39% 38%
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
VMS SUPPLIER
Supplier performance responses to Job PostingsFY 2019-20
5,652Job Postings
(Job postings may result in several hires)
Approx. 3 Suppliers
invited per Job
posting(Sector Average)
17,812Total individual invitations
issued to suppliers(Requests sent to suppliers)
43,445CVs Submitted
Declined4%
Ignored12%
Response84%
12,405are shortlisted
6,747are hired
Top 10 Contractor Central Role Types by HeadcountFY 2019-20
0 500 1000 1500 2000 2500 3000 3500 4000
Business Analyst
Customer Service Officer
Program or Project Administrator
Disability Care Workers
ICT Specialist
ICT Business Analyst
ICT Project Manager
Call Or Contact Centre Operator
Project Coordinator / Project Manager / Program Manager
Clerical and Administrative Workers
2019 2020
16
2015 2016 2017 2018 2019 2020
• Education
• Health
• FACS
• DFSI (Customer Service)
• Justice
• Industry
• Planning & Environment
• ACT Govt
• TAFE
• Sydney Water
• icare
• Premier & Cabinet
• Transport Ph 2:- NSW Trains
- NSW TrainLink
- Sydney Metro
• Transport Ph 1:- Corporate Services
- People & Culture
• Treasury
In progress
Contractor Central Implementation update
• In 2020 all NSW Government clusters, plus the ACT Government, have introduced Contractor Central
for management of the Contingent Workforce (SCM0007). We currently have 14 separate Vendor
Management System (VMS) instances.
https://buy.nsw.gov.au/schemes/contingent-workforce-scheme
Machinery of Government update
Key cluster-level changes 2019 / 2020
Changes to agencies under each cluster are not depicted above
Full details can be found on https://www.dpc.nsw.gov.au/assets/dpc-nsw-gov-au/Governance-Arrangements-Blue-Chart.pdf
• Justice
• FACS
• Stronger
Communities
• Regional NSW
• Single MSP by end 2020
• VMS consolidation of Justice & FACS VMS instances by mid-
2021
• If you have workers in the Stronger Communities cluster,
Contractor Central will manage the consolidation of workers and
support you through the process
• Industry
• Planning &
Environment
• Planning,
Industry &
Environment
• No immediate changes to existing Contractor Central arrangements
• Separate VMS instances & MSPs to continue at present for
i. Industry
ii. Planning & Environment
• New cluster announced in April 2020
• Serviced under DPIE (Industry) Contractor
Central arrangements
Impact to Contractor Central arrangements
SCM0007 – Applications statusFY 2019-20
1 60
207
77
129
229
13
41
1
88
185
52
NEW APPLICATION RESUBMISSION VENDOR PROFILE UPDATE
Successful Unsuccessful Waiting Decision Withdrawn
594Applications
489updates
SCM0007 – Certificates of Currency
2020 Expired Certificates of Currency
Check your insurance certificates today !www.tenders.nsw.gov.au
0
100
200
300
400
500
600
Q1 Q2 Q3
Public Liability Professional Indemnity Workers Compensation
Source: www.tenders.nsw.gov.au
SCM0007 – Application processing timesFY 2019-20
SLA
0 weeks
1 weeks
2 weeks
3 weeks
4 weeks
5 weeks
6 weeks
7 weeks
8 weeks
9 weeks
10 weeks
0
10
20
30
40
50
60
70
80
90
100
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020
Avera
ge P
rocessin
g T
ime
Applic
ations R
eceiv
ed
Applications Recevied Weeks (Average)
• Due on the 10th day of the month (or) the previous working
day if the 10th falls on a weekend or public holiday
• Always download an up-to-date template from buy.nsw
• Report transactions outside of the VMS only
• Report “NIL” if all your workers are in the VMS
Reporting Reminder
All suppliers must report each month
Cyber Security
Useful references
• https://www.digital.nsw.gov.au/digital-transformation/cyber-security/resources
• https://www.smallbusiness.nsw.gov.au/sites/default/files/2019-07/Cyber-Aware-full-report.pdf
Supplier Hub
23https://suppliers.buy.nsw.gov.au/ict/
Q&A
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Please ask any questions in the chat bar to the right.
Questions not answered in today's forum will be responded to in
Q&A responses after the forum.
Questions?
Q&A
25
Q. I’m new to SCM0007. What is the best way to contact hiring
managers to introduce myself and market my services?
A. You no longer need to maintain an extensive list of hiring manager
contact details. The Contractor Central team in each cluster is your
point of contact. If you have not already done so, you should meet
with each Contractor Central team and make them aware of what
types of workers you can provide.
Q. Who are the specific contacts for each area or cluster, and the
sub-clusters? Do they work on a geographical basis?
A. Each cluster or agency’s Contractor Central team is the single point
of contact for both suppliers and hiring managers, for all geographical
areas. Contact details are available from
https://buy.nsw.gov.au/schemes/contingent-workforce-scheme
Q&A
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Q. I have not received a Job Posting for several months. I am
compliant with reporting and insurance requirements. Why am I
not receiving opportunities?
A. It is important to stay in regular contact with your Contractor Central
team so they are aware of what types of workers you can provide. The
contact details for each cluster’s Contractor Central team are available
from https://buy.nsw.gov.au/schemes/contingent-workforce-scheme
Q&A
27
Q. Will there be any review of the set margins under SCM0007?
A. No, we do not have any plans to review the supplier fee.
Q. What happened to the monthly expenditure report previously
published on data.nsw.gov.au?
A. The 2019-20 Proactive Release of Information is now available on
https://buy.nsw.gov.au/schemes/contingent-workforce-scheme
All future reports will be published in the same location.
Q&A
Q. What are you doing to support small businesses during the
recession?
A. NSW small businesses (with less than 20 employees) that supply to
participating NSW Government agencies may be eligible for faster
payments under the Faster Payment Terms policy. Small businesses
must be registered with the Small Business Commissioner:
https://www.smallbusiness.nsw.gov.au/what-we-do/our-work/faster-
payment-terms
Additionally, some NSW Government clusters and agencies have
shortened their invoice payment terms to support suppliers through this
period.
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Q&A
Q. Who is the person to contact in NSW Procurement if
communication with clusters is difficult?
A. Please contact the buy.nsw Service Centre at:
[email protected] | Phone 1800 679 289
A member of the Human and Professional Services team will
respond to your enquiry.
Q. Would you consider reviewing the reduction after 12 months
for part time workers? For example, if someone works three days
per week for 12 months?
A. We do not have any plans to review the supplier fee under
SCM0007.
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Q&A
Q. Why are suppliers not allowed to speak to hiring managers,
particularly when briefings do not explain what the hiring
managers are looking for?
A. Each agency / cluster defines their business processes for the
engagement of contingent workers. The MSP will facilitate any further
dialog between you, other suppliers and the hiring manager. This
ensures a clear understanding of the role requirements is provided to
all invited suppliers.
Q. What response time should we expect when the enquiry
concerns a change to entity due to acquisition?
A. Requests to Novate are not automatically granted and the time
required to assess a novation can vary depending on complexity, the
number of workers involved and the assessment of risk. On average
this may take between 2-4 weeks. 30
Q&A
Q. Do suppliers work on a geographical basis? We see plenty of
Sydney agencies advertising in Newcastle.
A. All suppliers are authorized to provide workers across NSW.
Q. As a new supplier, who do we speak with if we can't get a
response from the MSP for an introduction meeting?
A. You should escalate this to NSW Procurement via 1800 679 289.
Q. Is there a reciprocal notice period for engagements through
SCM0007? (if not stated in writing by MSP or Hiring Manager)?
A. If not otherwise stated at the beginning of the engagement, the
default notice period is 0 days.
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Q&A
Q. If a candidate leaves a role for 4 weeks and is then re-engaged,
is tenure restarted?
A. The SCM0007 scheme rules do not determine tenure.
Rather, the Scheme provides conditions that determine when a
sourcing fee (7.05%) is to be used over a payroll fee (5.14%).
Several factors need to be considered when determining what fee is
payable for the reengagement of an existing worker and these may
vary at a cluster / agency level.
Please contact your MSP for further advice.
32
Q&A
Q. There are good policies about engaging indigenous owned
businesses, my question is that is there any policy or target to
engage businesses that support disabilities?
A. Suppliers who drive positive social change are an important part of
our supplier base. NSW Procurement has included questions in the
supplier application process to identify suppliers who can
accommodate job seekers with a disability.
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Thank you
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