Changes to procurement rules have been welcomed by the Industry Capability Network (ICN), who will leverage them to further support SMEs throughout the country. Photo: ICN.
Small and medium businesses across Australia can now enjoy the benefits of the Federal Government’s changes to Commonwealth procurement rules, which came into effect on 1 July.
Under the new rules, 25 per cent of procurements below $1 billion and 40 per cent of procurements below $20 million are required to be sourced from SMEs.
Project entities can also engage with SMEs directly for procurements valued up to $500,000, increased from $200,000, and at least one SME must be approached for every quote request from the mandated Management Advisory Services Panel and the People Panel.
Industry Capability Network (ICN) maintains an expansive database of SMEs across various industries, called ICN Gateway. The network can be leveraged by federal government and procurement managers to identify the right businesses for their project based on a list of requirements. Member businesses can also search for projects online and register their interest directly.
National Strategy Director at ICN, Mike Swart welcomes the Federal Government’s recent changes.
“Bumping up procurement targets and raising the exemption threshold is a significant step towards more opportunities for SMEs,” he says.
“Increased access to government contracts fosters innovation, creates more jobs and drives sustainable growth across various sectors.
“These changes will not only support the growth of SMEs locally but also enhance their capacity to compete on a larger scale, ultimately contributing to a more robust national economy.”
The government market has a wealth of potential for businesses of all sizes, but many SMEs lack the confidence to apply for government contracts. Photo: Michelle Kroll.
SMEs deserve their fair share of domestic business opportunities, but knowledge is power. Businesses will need to know what new opportunities may look like and how best to navigate them in order to take full advantage of recent changes.
“It’s important for businesses to know the specifics of the Federal Government’s new procurement rules,” Mike says.
“They must also understand project application processes and stay up to date with upcoming government contracts. Confidence is a big factor in getting more SMEs to engage with these contracts.”
Business.gov.au and the Department of Finance’s Selling to Government are both good resources for anyone looking to start working on government contracts.
From a major project perspective, Mike says public workshops and education sessions have also been successful in facilitating better engagement on both sides.
“Continued engagement and education will be key to ensuring that both SMEs and government entities can work together seamlessly and productively.
“It can seem daunting, but by equipping themselves with the right knowledge and resources, SMEs can strategically position themselves to maximise every opportunity that comes their way.”
ICN works to provide all Australian and New Zealand companies full, fair and reasonable opportunity on public and private projects.
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