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

September 15, 2021

Our story. Reinventing a business.

Spend Network exists because I almost lost everything. Where we came from: I'd built a consultancy with twenty staff and clients across...
August 31, 2021

UK and Central America Increase Trade Ties

The UK’s export credit agency UK Export Finance (UKEF), has signed a partnership with Banco Centroamericano de Integración Económica (BCIE), Central America’s...
August 26, 2021

New Canadian Government Opportunities For Indigenous Businesses

We recently discussed new procurement changes in Australia with the Western Australian government procurement process, which includes specific policies to increase opportunities...
August 18, 2021

Will Europe Get Stricter On Procurement?

The EU countries have agreed to pass the International Procurement Instrument (IPI), one that was initially proposed by the European Commission back...
August 17, 2021

Has Protectionism Found A New Home?

One of the first acts of the Biden administration was to direct public buyers to buy from American firms. China is apparently...
August 12, 2021

The Right Data In The Right Place

We collect tens of thousands of documents every day. We visit more than 700 sources to collect this data. That's what our...
August 6, 2021

Slovenia Strides Forward With Procurement Improvements

Slovenia is slated to join Ukraine as the only public administrations that will routinely monitor contract overspend on all public contracts. What's...
August 3, 2021

South Korea Targets SME Growth Through Health Procurement

When selling to governments, SMEs often have challenges with matching the buying power and supply chain strength of larger organisations. For the...
August 3, 2021

New Carbon Reporting To Impact 1,000 Suppliers

New rules to help reduce CO2 in public contracting show that at least 720 suppliers will be required to provide a detailed...
August 3, 2021

Trade, Policy And Procurement Meet Again.

The UK's Trade and Agriculture Commission has published its final report, along with twenty-two recommendations, one of which is to direct the...
August 3, 2021

McGowan Government Enhances Aboriginal Procurement Policy

In 2018, Western Australian Labour Premier Mark McGowan introduced a landmark Aboriginal Procurement policy. The objective of the policy was to improve...
August 3, 2021

Are Trade Agencies Becoming More Like Hedge Funds?

Trade promotion, where a country promotes its companies and products to be bought by another, has a certain image. One imagines suave...
August 3, 2021

Meeting The Research Challenge

Our clients expect us to answer tough questions. Questions like, "what's the total value of public contracting worldwide?" or, "who's the leading...
August 3, 2021

US Consults On Social Procurement

The US Government's Office of Management and Budget (OMB) has requested submissions on the "methods and leading practices" to assess whether agencies'...

Newsletter

Compelling research, insights and data directly into your inbox.

Recent media stories

Search

Scroll to Top