The Central Supply & Tenders Board is established under Section 39 of the Public Finance (Management) Act 2003 to control and regulate procurement. The Board may make recommendations to the Minister for Treasury and Finance in relation to the rules to be followed by procuring entities when undertaking procurements. The Board also has responsibility for overseeing the Provincial Supply & Tenders Boards and any Specialised Supply & Tender Boards. The Act provides the Board with the authority to execute contracts on behalf of the Government of Papua New Guinea up to a value of K10m for the procurement of goods, works and services and the disposal of assets. For procurements with a value of more than K10m they will be reviewed by the Board before being referred to the National Executive Council for approval and execution by the Governor General.

All procurements undertaken by procuring entities with a value of more than K300,000 must be referred to the Board and put to public tender. The Central Supply & Tenders Board also gazettes all contracts awarded in accordance with the Public Finance (Management) Act.