Procurement policy when buying innovation

Test and Buy Innovation complies with policies

The Test and Buy Innovation model is a collection of existing procurement methods that encourage innovation. These methods, such as using a challenge statement, testing and shortlisting over multiple stages and adapting to new information, are not commonly used. However they all comply with procurement requirements and are often even encouraged by procurement policies.

Leading practice in agility and governance

While there are no policy barriers to innovation procurement, innovation-friendly methods can be unfamiliar and complex to adopt. The Test and Buy Innovation guidance supports buyers and procurement teams to use the full extent of existing procurement policy levers, navigate complex processes and improve project outcomes.

The principles of fairness, transparency and value for money that apply to all NSW Government procurement apply equally to buying innovation. Each buying team and agency procurement team is accountable for applying these principles, but should be aware that steps to achieve them might look different in the context of innovation. Additional preparation can sometimes be needed, which can be accelerated through Test and Buy Innovation guidance with repeatable processes, templates and samples.

Learn and adapt

In a multi-stage process, developing a buying pathway and iteration plan and probity measures are key steps, but they can't be 'set-and-forget' artefacts. Instead, they should be ‘living documents' that adapt to new information to support the documents and milestones that need formal approval. Not adapting to new information could mean ignoring new risks or forfeiting new benefits.

Test and Buy Innovation guidance is based on an agile procurement framework that has been designed for the public sector. Innovation procurement requires buying teams to have open minds and not assume the solution. This means new information is likely to emerge over the course of a buying pathway. The framework governs how to anticipate change within the procurement process, and when to make changes to the buying strategy to accommodate it.

This guidance is designed to complement NSW Government procurement policies and agency-specific policies and procedures. It focuses on how to run an agile, iterative, multi-stage procurement process while maintaining probity and compliance. Test and Buy Innovation guidance supports buying teams to implement innovation-friendly procurement methods while complying with procurement policies. It also helps buying teams give decision-makers and suppliers confidence that their project meets public sector obligations.