The Minns Labor Government has announced a new partnership with the Australian Competition and Consumer Commission (ACCC) aimed at addressing cartel behaviour, including bid rigging, in government contracts.
The NSW Government said the agreement will allow it to share tender data and other procurement information with the ACCC. Artificial intelligence systems will be used to process large volumes of contract documents, submissions and tender data to help identify suspicious patterns, which may then be referred to the ACCC for possible legal action.
Treasurer Daniel Mookhey said the use of new technology was intended to deter misconduct. “We’re partnering with the ACCC so we can deploy world leading technology to deter would-be conspirators,” he said.
“There are many good operators in NSW – and those are the companies we want to do business with. This agreement is designed to neutralise bid rigging and other cartel conduct in order to get the best outcomes for NSW taxpayers.”
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said the agreement forms part of broader procurement reforms.
“This new agreement is another tool we are going to use to deliver value for money for NSW taxpayers,” she said. “Using their expertise and legal powers of the ACCC will keep suppliers honest and make sure we deliver the best outcomes for the state for each project. We have a zero-tolerance approach to this illegal conduct.”
ACCC Chair Gina Cass-Gottlieb said the new data sharing arrangements would strengthen efforts to identify collusion.
“The ACCC looks forward to new data sharing arrangements with the NSW Government which will help identify suspicious patterns in procurement indicating collusion and cartel conduct between tenderers,” she said. “Cartel arrangements, such as bid rigging, often inflate costs for consumers or other businesses and are a serious breach of the law.”
The NSW Government said it spends more than $42 billion each year on goods, services and construction.
According to the Organisation for Economic Co-operation and Development (OECD), improving competition and preventing collusion could save governments up to 20 per cent on contracts.
International examples were cited, including South Korea, where a cartel screening tool was reported to flag dozens of cases each month, leading to fines in some instances.
The NSW Government described the partnership with the ACCC as another procurement reform aimed at improving competition and delivering value for money.
