NSW Health: A capability diagnostic of capital works procurement functions

The Situation

Across NSW Health, 15 Local Health Districts (LHDs) deliver capital works projects, each project with a value of up to $10M. Above this threshold projects are delivered by a separate entity, NSW Health Infrastructure.

The Secretary of Health required assurance that LHDs had sufficient capacity and capability to deliver the increasing pipeline of capital works projects. This included building sufficient procurement capability within LHDs.

The project

To assess the current state procurement capability of LHDs, Health Infrastructure and Grosvenor developed a catalogue of assessment criteria to understand the maturity of procurement processes, systems and people capabilities.

This diagnostic tool was co-designed with Health Infrastructure and three LHDs to ensure the criteria are relevant and applicable to their environment. Four LHDs then formed a pilot program where the assessment process and criteria catalogue was tested and adjusted to accommodate the learnings from these pilots. The assessment included a document review, a process mapping workshop, the review of a recent procurement and a walk-through of available systems.

Each LHD then received a baseline gap report with recommendations on how to close the identified gaps. An interactive website, including eLearning modules was set up by Health Infrastructure to guide LHDs through the capability build phase. By the end of that phase, Grosvenor re-assessed the LHDs to understand the capability uplift achieved and to confirm that the LHDs were now equipped to deliver capital works projects up to $10M independent of other agencies.

The outcome

Grosvenor worked with four LHDs and completed their baseline and final assessments. Each one of them was able to significantly improve their procurement capabilities by leveraging the tools, templates and eLearning modules made available to them.

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