NSW Aims To Reserve Procurement Budgets For SMEs

February 28, 2021
Procurement

We’re always pleased to see governments around the world improving their procurement processes, by broadening opportunities for all types of business to sell to them.

This week, the Australian state of New South Wales announced a number of new initiatives as part of its ICT/Digital Sovereign Procurement Taskforce, that began midway through last year. The objective of the task force is to assist SMEs to do business with the State Government, particularly in underrepresented categories like indigenous suppliers and start-ups.

While the final report will be released later this year, a number of initiatives have already been launched to level the playing field, including the introduction of SME spend targets, equating to 30% of total IT procurement in direct addressable spend. In addition, 25% of indirect IT procurement addressable spend valued above AU$3 million must also be awarded to SMEs.

We’re interested to know if the NSW Government plan to release data on contracts (including sub-contracts) openly, so that they and the public can monitor if these targets are being met. We’d also like to see the Government  monitor competition and the value it achieves, to be able to assess if different tender strategies secure better outcomes.

At Federal Government level, a similar SME support programme, the Digital Marketplace was introduced in 2016 and has awarded 69% of government contracts to SME’s since the programme launched.

These SME targetted initiatives will have a deep impact on the Australian economy, considering there are approximately 2.06 million small businesses in Australia employing less than 19 people, accounting for 97% of all Australian businesses by employee size. There are also approximately 51,000 medium-sized businesses, employing 20 to 199 employees, which is 2.4% of all Australian businesses.

Awarding government contracts to SME’s promotes local and regional economies, supports job growth, and provides a good return on investment for public funds. We will share more information on the full report and associated initiatives when it launches later in the year

In the meantime, if you’d like to discuss with us our government procurement data, please get in touch.

April 14, 2021

UK Government Procurement Under Pressure

Yesterday the FT published an article, £19bn of UK Covid-related contracts awarded without seeking rival bids. The report reviewed the value of...
April 14, 2021

Selling to procurement: No One Cares About Your Product

Selling to procurement professionals is something that most people find frustrating, mainly because they are highly resistant to direct sales. Why? Well,...
April 7, 2021

8 Reasons Why Procurement Doesn’t Need Blockchain.

Blockchain is fundamentally a database, but rather than a database where one item is allowed to replace another, each change to the...
March 25, 2021

Procurement Transparency Suffers Under Covid-19

Government publishing of procurement notices has fallen significantly following the global spread of Covid-19. The total number of tender notices published globally...
March 20, 2021

South Africa, Kenya lead the way on African transparency.

Both South Africa and Kenya lead the way in procurement transparency according to our data, South Africa and Kenya publish more tender...
March 16, 2021

Missing Data Is A Known Unknown

There is a famous quote about the fragility of knowledge by Donald Rumsfeld, the hawkish US Secretary of Defence during the Iraq...
March 4, 2021

NZ Government Pharmaceutical Procurement Review

The New Zealand Government is taking steps to improve its procurement of national medicine supply through a review process. The Pharmaceutical Management...
February 28, 2021

The Problem With Frameworks

-Ian Makgill In my last post, I covered off framework agreements, and the advantages of using them for both government and suppliers.In this...
February 28, 2021

Do Framework Agreements Have Value?

-Ian Makgill Framework agreements are like umbrella agreements, and are usually made with a group of providers to supply a set of...
February 28, 2021

Creating Synergy Between Politics & Procurement.

The need for administrations to act at pace is often at odds with the processes and procedures needed for good procurement. If...
February 28, 2021

Canada Launches Green Procurement

We are always pleased to see governments taking steps towards better procurement practices. Recently, the Canadian Government took a step forward for...
February 28, 2021

Not All Data Is The Same: Rules For Data Integrity.

-Ian Mackill Not all data is the same. It might have come from the same source, but how it gets treated is...
February 4, 2021

Post Brexit Procurement – What Will Change?

With the Brexit transition period officially behind us, it's worth considering the potential impacts of Brexit on Government procurement into the future....
February 28, 2021

Where Next For Data Led Procurement in Europe? A Discussion.

The They Buy For You  Project (TBFY) concluded on 31 December 2020. To mark the occasion, we look back at three years...
February 28, 2021

Spending $400bn – A Demanding Task For Biden.

-Fiona Hunt As my colleague Ian wrote this week, governments are increasingly looking to procurement to deliver better social outcomes. President Biden...

Newsletter

Compelling research, insights and data directly into your inbox.

Recent media stories

Search