A NSW Government website

Leasing of Crown land by competitive process

When considering a lease application, the department will determine whether a competitive process or direct negotiation with the applicant is appropriate to ensure a fair and open outcome.

We will not knowingly accept applications from or enter into negotiations with applicants who demonstrate an inability to meet the requirements of the NSW Government Code of Practice for Procurement.

The code can be viewed and downloaded from NSW Government Code of Practice for Procurement (PDF 77KB)

Irrespective of whether a competitive process or direct negotiation is used to secure a tenant, the probity principles must always be complied with.

As well as identifying the tenant offering the best value for money, the leasing process must demonstrate probity and be honest, fair and equitable. It must also be perceived by all involved as being fair and equitable.

Competitive process – Western lands lease

Determinations of lease by a competitive process are made using the following steps:

Step 1 : Call-to-market

We will prepare a ‘call-to-market’ document that allows interested parties to participate in a competitive process to secure the right to negotiate a new lease of Crown land.

The competitive process will consider third-party interests, statutory criteria and other relevant matters that must be addressed for a submission to be eligible for evaluation.

The call-to-market document will contain information about the proposed activity to be undertaken on the subject Crown land. The document will include selection criteria that all respondents must address.

Step 2 : Successful tenderer selected

An evaluation panel evaluates all submissions received.

The panel will recommend a preferred respondent (only if the minimum selection criteria are met).

If any problems are identified during the competitive process, we will notify all respondents. We reserve the right to discontinue a competitive process at any point, without accepting or rejecting submissions.

Step 3 : Negotiation of lease

Both parties agree and sign a negotiation protocol that sets out the terms under which negotiations are to take place.

Lease terms and conditions are then negotiated between the parties within an agreed timeframe.

Step 4 : Agreement to lease

Lease terms and conditions are agreed and a draft lease is prepared for execution.

Step 5 : Execution and registration of lease

The lease is executed by the leaseholder first and then issued to us for execution by the delegate of the ministers. We will manage the registration of the lease with NSW  Land Registry Services.