The New South Wales Government has awarded its first goods and services contracts for of management fees after the State Government moved to roll out major changes to procurement processes which it says will save businesses millions of dollars.


State Minister for Finance and Services, Greg Pearce, said businesses supplying photocopiers and printers to government agencies would now no longer have to pay the 2.5 per cent contract fee.


“Earlier this year I announced the Government’s decision to remove costly management fees from NSW Government contracts saving  business  up to $15 million a year.


“In the past these fees have been paid to agencies handling the contract which is then passed on to NSW Procurement.


“Under the reforms, these fees are no longer necessary which mean big savings for business and less expense for the NSW Government,” he said.


Mr Pearce said the new contract, which covers the supply of office equipment such as printers and photocopiers, is the first not to include the fee.


“Government agencies purchased more than $40 million worth of these products over the last 12 months so this will result in huge savings for business,” he said.  “Under new arrangements, businesses supplying these products will  not be paying any unnecessary fees.


“Over the last year, the reforms have included the simplifying of terms and conditions in contract documents, and an overhaul of governance arrangements for procurement.