A new way to work with the NSW Government: Innovation Initiative

The Premier of NSW, the Hon Mike Baird MLA, has announced an Innovation Initiative designed to encourage ideas from outside government through a competitive selection process. The Government is seeking proposals in the following four areas:

  • Social housing assets: using innovative financing solutions to assist with the replenishment of the public housing portfolio.
  • Open data: fast-tracking the release of de-identified data.
  • Congestion: reducing congestion on Sydney’s roads.
  • Open ideas: identify a policy challenge and provide a solution.

The Government will make a public call for Expressions of Interest in the coming months, which will set out the context, challenges the Government is seeking to address, and outcomes sought. This Initiative is being overseen by the NSW Department of Premier and Cabinet.


The Government is currently undertaking informal market discussions with business and community groups to inform the Expression of Interest process.

When submitting an Expression of Interest, proponents will need to provide a short outline of their proposed concept, along with details of their capacity to deliver quality outcomes. Proponents may indicate whether they wish to keep their proposal confidential.

Detailed proposals will need to set out the following:

  • detail of the proposed approach, including what it is, how it would work, the outcomes to be achieved and how the outcomes would be measured;
  • how the proposal addresses the need identified by the Government, and the evidence that it would do so;
  • how the proposal is innovative, such as new methods and/or service delivery models;
  • whether the proposed approach could be repeated across other areas;
  • the ways in which the proposal is consistent with NSW Government objectives and plans;
  • an evaluation of the potential benefits that would accrue under the proposed approach;
  • the proposed financial and funding arrangements;
  • project timeframes and milestones;
  • the experience and capacity of the providers;
  • any specific or unusual commercial terms sought by the proponents;
  • if the proponent proposes to enter into any partnerships to deliver the project, or engage consultants; and
  • how the proponent will address probity requirements.

Relevant agencies may hold individual workshops with proponents to assist in the development of detailed proposals, and for the Government to better understand proposals.

The Government will not reimburse costs associated with putting forward an expression of interest or detailed proposal.

Evaluation criteria

Cabinet will consider the following issues when evaluating proposals.

Priority Does the proposal directly advance the fulfilment or delivery of a Government priority outcome and area selected for quality and innovation?

Innovation Does the proposal establish innovative alternative service delivery models in areas previously dominated by traditional government-led service delivery?

Value for money Does the proposal deliver value for money to the NSW Government? Consideration will be given to factors such as: whole-of-life costs and revenue, quality, risk borne by Government, benefits gained, qualitative and whole of Government outcomes including timely achievement of objectives.

Market competition Does the proposal contribute to the development of competitive service delivery markets?

Promoting consumer interests Does the proposal maintain or improve service quality and promote the long-term interests of consumers of the service?

Repeatability Does the proposal demonstrate a repeatable new approach that could be applied more widely?

Capability and Capacity Does the proponent have the experience, capability and capacity to carry out the proposal? What reliance is there on third parties?

Affordability Does the proposal require Government funding, or for the Government to purchase proposed services? Would the costs be offset by savings or would new funding sources be needed? Has the proponent proposed alternative and innovative forms of funding?

Risk allocation What risks are to be borne by the proponent and by the Government? Where risks can be quantified and valued they may also be considered under the value for money criteria.

Further information

For more information, please contact Wayne Gersbach on +61 410 697 404 or Gersbach@macroplan.com.au.