A boon for SMEs?: Authorities set to revamp procurement guidelines

Adjustments to authorities procurement guidelines set to take impact subsequent month have been hailed as “a significant enhance” to SMEs.

The brand new procurement requirements will prioritise Australian companies and formalise SME-friendly procurement practices, corresponding to growing thresholds and improved provider visibility, in accordance with Finance Minister Katy Gallagher.

The Federal Authorities has detailed a variety of adjustments to the Commonwealth Procurement Guidelines (CPRs), which can take impact on November 17. Key adjustments embody:

• A rise within the procurement threshold from $80,000 to $125,000 for all non-corporate Commonwealth entity (NCEs) for non-construction procurement.
• New guidelines for NCEs to ask solely Australian companies to tender for presidency contracts for non-panel procurement under the related procurement threshold.
• Solely SMEs to be invited for Administration Advisory Companies (MAS), Folks, and DTA panel procurements below $125,000, whereas the Indigenous Procurement Coverage will nonetheless be utilized the place related.
• Submissions and confidential data offered as a part of tendering could also be shared inside the Commonwealth for compliance monitoring and different reliable, non-commercial functions.
• Secondments inside and between Australian Authorities entities are usually not thought of as procurements.

Along with the CPR updates, a brand new Provider Portal is being launched, which provides a publicly searchable database of potential suppliers to the federal government. One key characteristic of this portal will allow companies to determine traits corresponding to whether or not they’re registered as an Australian enterprise, an Indigenous enterprise, an SME, and/or a women-owned enterprise.  

“The updates mirror the federal government’s dedication to bettering the aggressive functionality of Australian companies taking part in Commonwealth procurement, together with key adjustments to provide impact to the federal government’s election dedication to prioritise Australian companies in authorities procurements and contracts,” mentioned Gallagher.

Provider variety organisation Provide Nation says the adjustments will encourage better participation by Australian companies, together with SMEs, in authorities procurement, which, in flip, will profit the Australian economic system. 

“Mechanisms and help that improve better participation by Australian companies in authorities procurement could have long-lasting advantages for Australia’s Indigenous-owned companies and the prosperity of all Australians,” mentioned Provide Nation CEO Kate Russell. 

“Indigenous-owned companies are working throughout all sectors of the economic system and contributing considerably to Australia’s GDP, jobs progress, and sustainability objectives.”