Revised Standard Commercial Framework Live from 6 th

Revised Standard Commercial Framework Live from 6 th of January 2020 1

Standard Commercial Framework Key Elements The standard commercial framework provides a common basis for all BAS engagements across NSW Government Commercial Framework Element Professional Fees Capped Daily Rates Engagement Size Discounts Other costs • Discount applicable to assignments based on total cost of the project • Discounts applicable to secondments where NSW Government uses BAS to augment current teams Disbursements • Defined standards on what expenses are billable • Standard cap on disbursement as a percentage of total engagement cost Role Definitions Enablers • Maximum daily rates per engagement and role type • Daily rate capped on the basis of standard 8 -hour day and in AUD ex GST Secondments Resource Mix Role Profile Description Engagement Type Definition Monthly Reporting • Provides resource mix guidance to all BAS buyers and suppliers • Aligns supplier role definitions with NSW Government standard role definitions • Sets standard definitions for all key engagement types for NSW Government • Transaction level reporting to track spend including: resources, fees and disbursements NSW Treasury 2

PMS Engagement Types 1 to 12 The standard commercial framework applies to engagement types 1 to 12 only # Standard Commercial Framework Capped Rate Description # 1 Government & Business Strategy development and planning, strategic business case, business performance reviews, organisational design / transformation, business intelligence, cost management, governance, policy review / development 2 Financial Services 5 Financial Services Accounting services, accounting standards, finance process reviews, asset management, valuations, financial / economic advisory services, forensic advisory 3 Audit, Quality Assurance and Risk 6 Audit, Quality Assurance and Risk Internal / external audit, risk management, probity services 4 Marketing and Customer 10 Marketing and Customer Market research, customer / customer experience, pricing 2 Business Processes 3 Project Management 4 Change Management 8 Human Resources 9 Procurement & Supply Chain 7 Taxation 11 Actuarial Services 12 Transaction Services 5 6 Operations Transaction, Actuarial, Taxation Engagement type Sub engagement types Project management, business process mapping / re-engineering, procurement / sourcing, category management, procurement accreditation, supply chain, change management, human capital management, culture, work health and safety (WHS), remuneration, retention, diversity Transaction services, actuarial services, goods and services tax (GST), other tax services NSW Note (1) Engagement type 13 (i. e. Telecommunications) has been temporarily suspended (2) Commercial Framework DOES NOT apply to Engagement Types 14 and 15 (i. e. Specialised Advisory and Infrastructure Advisory). Treasury 3

Resources Types Resource types and definitions apply to engagement types 1 to 6. Suppliers are to use these in proposals. This makes easier to compare quotes from multiple suppliers and resources. Resource type Minimum years of relevant experience Description Partner Senior management member 12 Director Management member with deep expertise 10 Senior employee with significant specialist expertise and team leadership capabilities 8 Junior level of entity management, specialist technical and subject matter expertise; manages assignment schedules and resource allocation 6 Field leadership role, moderate level of technical and subject matter expertise; provides business system advice and consulting services 4 Consultant Performs detailed data and systems analysis, identifies risks, gathers additional data, interprets data and provides recommendations for improvement. Higher level technical skills, broader experience base, business process & industry knowledge and requiring less supervision than an analyst 2 Analyst Performs data gathering and analysis with strong technical skills. Low level of industry knowledge. Supervised by more senior members. 0 - 4 Senior Manager Senior Consultant NSW Treasury 4

Revised Capped Daily Rates The Capped Daily Rates 1, 2 are set as the ceiling rate for any given engagement type and role combination, effective from 6 Jan 2020 Standardised NSW Government Role Type Commercial Framework Capped Rates Description Partner Director Senior Manager Senior Consultant Analyst Government and Business Strategy 3, 500 3, 000 2, 600 2, 100 1, 750 1, 300 1, 050 Audit, Quality Assurance and Risk 3, 250 2, 750 2, 600 2, 100 1, 400 1, 150 950 Marketing and Customer 3, 000 2, 700 2, 550 2, 100 1, 750 1, 250 1, 050 Financial Services 3, 400 2, 900 2, 550 2, 100 1, 700 1, 250 1, 050 Operations 3, 400 2, 900 2, 550 2, 100 1, 700 1, 250 1, 050 Transaction, Actuarial, Taxation 3, 900 3, 700 3, 050 2, 450 2, 200 1, 850 1, 600 Note (1) Capped Daily Rates on the basis of standard 8 -hour day and in AUD ex GST. (2) Capped Daily Rates for assignments; secondments will be expected to have an additional secondment discount applied to these rates NSW Treasury 5

Revised Discounts Four tiered discount structure dependent on the engagement size and risk responsibility Leveraging suppliers economies of scale on large engagements Note: (1) Effective from 6 Jan 2020 Fees reduced to reflect project risk residing with NSW Government NSW Treasury 6

Disbursements Policy Disbursements policy sets to limit and manage expenses during service delivery Cost Element Disbursements Policy Disbursements Cap All disbursements will be capped at 7% of engagement fees Couriers At Cost Database and Market Research No Charge Lowest available fare of the day Maximise advance bookings Airfares Economy only at cost At Cost, using Contract 1008 Travel Management Services through FCM, or lower using other means Car Hire At Cost, using Contract 1008 Travel Management Services through FCM, or lower using other means Accommodation At Cost, using Contract 1008 Travel Management Services through FCM, or lower using other means Other Travel At Cost Meals - Breakfast At Cost <$30/day Meals - Lunch No Charge Meals - Dinner At Cost < $50/day Taxi At Cost - prior approval for circumstances other than to/from airports, leaving office after 8 pm, meetings where multiple sites are used Tips & Gratuities No Charge Room Hire & catering At Cost Stationery & postage No Charge Photocopying No Charge Telephone & Fax Wireless Internet Fees Secretarial & clerical No Charge On (NSW Govt) Site At Cost Off Site No Charge NSW Treasury 7

Revised Resource Mix Guide Resource mix guide by engagement types set as guidance for buyers and suppliers Commercial Framework Capped Rates Description Standardised NSW Government Role Type Partner Director Senior Manager Senior Consultant Government and Business Strategy 9% 8% 10% 18% 20% 23% 12% Audit Quality Assurance and Risk 8% 9% 5% 17% 18% 26% 16% Marketing & Customer 8% 10% 4% 20% 18% 21% 20% Financial Services 8% 9% 5% 17% 18% 26% 16% Operations 6% 6% 6% 20% 19% 24% 19% Transaction, Actuarial and Taxation 8% 9% 5% 17% 18% 26% 16% Analyst NSW Treasury 8